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An Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016

Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

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Page 1: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

An Emerging Mobile Gaming Leader

Ticker: TAPM

FEBRUARY 2016

Page 2: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

To the extent that statements contained in this presentation are not descriptions of historical facts regarding Tapinator, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Examples of forward-looking statements contained in this presentation include, among others, statements regarding the quoting and trading of our common stock and our expectations regarding our development and monetization plans for our mobile games. Forward-looking statements in this release involve substantial risks and uncertainties that could cause the development and monetization of our mobile games, future results, performance or achievements to differ significantly from those expressed or implied by the forward- looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the hits nature of the mobile gaming business. Tapinator

undertakes no obligation to update or revise any forward-looking statements. The quoting and trading of the company’s common stock on the OTC Bulletin Board and the OTC Market Group’s OTC Link quotation system is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the company’s operations or business prospects. As a result, there may be volatility in the market price of the shares of the company’s common stock for reasons unrelated to operating performance. Moreover, the OTC Bulletin Board and the OTC Market Group’s OTC Link quotation system are not stock exchanges, and trading of securities on them is often more sporadic than trading of securities listed on the NASDAQ Stock market or another securities exchange. Accordingly, stockholders may have difficulty reselling any of their shares. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see Tapinator’s disclaimers, which are available here: http://www.tapinator.com/disclaimers

FORWARD LOOKING STATEMENTS

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Page 3: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

W H AT W E D OAn Emerging Mobile Gaming Leader

We Design, Develop,

& Publish Casual

Mobile Games for the

iOS, Android, and

Amazon platforms.

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Page 4: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

M O B I L E G A M I N G G R O W I N G T O $ 4 1 B B Y 2 0 1 7App Store Billings Have Already Exceeded Hollywood US Box Office Revenues

$41Bby 2017

$17Bby 2013

3Sources: Newzoo 2014 Global Games Market Report & Service; Glu Mobile Analyst Day Presentation, May 14, 2015

Page 5: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

F u l l F e a t u r e d G a m e s

3 to 9 month development timeline

Variety of genres including Quick-Fix,

Social Casino, & RPG

Working with branded IP

Monetizes primarily through in-app

purchases, and advertising

More risk but ability to generate

home run successes

A N E M E R G I N G M O B I L E G A M I N G L E A D E ROver 180 Titles with New Games Released Every Week

R a p i d L a u n c h G a m e s

Launching 1-2 games weekly

Using proprietary game engines, development

has become faster, more cost-efficient

Variety of genres including driving, parking,

stunts, animal and career simulation

Profitable, low risk

Monetizes primarily through advertising

Tw o D i v i s i o n s

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A N E M E R G I N G M O B I L E G A M I N G L E A D E RRapid Launch Games

Over 180 games: 40 of which have achieved 1 million+ downloads

*Historical data from 107 rapid launch games from 9/1/13 through 6/30/15.

*Figures include projected data over estimated remaining life. 5

Average Cost per Game* Average ROI per Game*

$6.5K 245%$22.4K

Average Revenue per Game*

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A N E M E R G I N G M O B I L E G A M I N G L E A D E RFull Featured Games

We have launched eight such Games on iOS.

Seven were Featured as Best New Games Six reached the Top 50 in Games

Full Featured Titles with Unique Gameplay and Branded IP:

I lya NikolayevCEO

Interviewed on TheStreetDec 1, 2015

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Page 8: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

F R E E M I U M B U S I N E S S M O D E LWe Monetize User Engagement

80% of Revenue 20% of Revenue

Ads In-App Purchases

12 Month Target: 50/50 revenue split between Ads and IAP

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Page 9: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

F R E E M I U M B U S I N E S S M O D E LOur Advertising Does Not Disrupt Gameplay

8

No Ads During Gameplay Ads Shown Between Levels

When Game Ends Users Can Purchase New Items or Levels

1 2

3 4

Page 10: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

Free to Play

Monetize Gameplay with Consumables & Non-Consumables

F R E E M I U M B U S I N E S S M O D E LOur In-App Purchases Enhance Gameplay

1

2

9

Page 11: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

M O B I L E M O N E T I Z AT I O N G E T T I N G S T R O N G E RPlayer Monetization Is Accelerating

GROWTHCompoundAnnual Growth

Rates:

App Rev

Mobile AdoptionTIME

19% C

AGR, 2

014-2

019 (t

o reac

h $7

3 bill

ion)

*

15.3% CAGR, 2014-2020 (to reach 6.1 billion smartphones)**

Sources: *Gartner; **Digital Trends/Ericsson 10

Page 12: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

C O M P E T I T I V E L A N D S C A P ERapid Launch and Full Featured Strategies Complement Each Other

Higher CPI, Higher ARPU

Lower CPI, Lower ARPU

Lower number of users

Higher number of users

FULL FEATURED

RAPID LAUNCH

11

MIDCORE

GAMES

HARDCORE

GAMES

CASUAL

GAMES

Page 13: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

C O M P E T I T I V E A D VA N TA G EBarriers to Entry

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• Zero paid marketing to acquire game’s first 100k players

(replaces market CPIs of $3-$5)

• Publishing opportunities

• Top search placement

• Ability to move games up the leaderboards

• Seven “Best New Games”

• Potential appstore placement for all full-featured games

• Mobile gaming is a live ops business

• Player analytics, attribution, and ad optimization are all crucial

• Cross Promotion System

• App Store Optimization

• Platform Relationships

• Data Analytics

180 Games

300,000+ Daily Installs

9m MAU

160mInstalls

Page 14: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

P L AY E R & G A M E M E T R I C SRobust Network Growth

M e t r i c s a s o f Q 4 2 0 1 5 :

· Average DAUs – 532,000; up 149% year-over-year

· Average MAUs – 8.8 million; up 104% year-over-year

· Average New Daily Downloads – 338,000; up 144% year-over-year

· Cumulative Downloads – 166 million as of Dec. 31, 2015; up 245% year-over-year

· Game Library – 186 titles as of Dec. 31, 2015; up from 94 year-over-year

· Game Concentration – Diverse portfolio with no single game accounting for more than 10%

of total revenues during 2015

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Page 15: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

R A P I D L A U N C H D I V I S I O NCritical Mass Across Six Genres

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Page 16: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

F U L L F E AT U R E D G A M E P I P E L I N ENine Announced Launches for 2016

Q1 2016 Q2 2016 Q3 2016 Q4 2016

Major motion picture based game.

To be announced.

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Page 17: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

F U L L F E AT U R E D G A M E P I P E L I N EVideo Poker VIP (with Multiplayer Mode)

B e s t I n C l a s s V i d e o P o k e r

· New spin on the players’ favorite video poker

variants including Jacks or Better, Deuces Wild,

Bonus Poker, and Double Bonus. Mechanics that

have proven themselves in slot games

· In Q1, we will be launching Multiplayer mode,

which is unique within the video poker segment

· Opportunity to own the video poker space on

mobile with a differentiated, highly polished

product

· The social casino industry will grow from its

current $3.4 billion level to $4.4 billion by 2017

* Source: Eilers Research, Social Casino Tracker, Nov. 2015 16

Page 18: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

F U L L F E AT U R E D G A M E P I P E L I N EPublishing Deal: Big Sport Fishing 2

S e q u e l t o H i t F i s h i n g G a m e

· Debuted on Google Play in 2010 and

has since accumulated over 15 million

downloads. This sequel will bring the

game to iOS for the first time

· Turns players phones into virtual

fishing rods within a 360 degree,

simulated reality fishing environment

· Evergreen category with more than

55m Americans going on at least one

fishing trip in 2013 spending $42b

· Mega hit potential given the success

of the hunting category on mobile

* Source: Statista 17

Page 19: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

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F U L L F E AT U R E D G A M E P I P E L I N EROCKY

G a m e B a s e d o n t h e L e g e n d a r y F r a n c h i s e

· Agreement with MGM covers creating an

interactive boxing mobile game based on the

entire ROCKY motion picture franchise

· ROCKY is one of only a handful of

brands that are recognizable across age

groups and demographics, especially given

the success of the Creed sequel

· The ROCKY franchise has grossed more

than $1 billion. Our game will launch in

June 2016

Page 20: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

F U L L F E AT U R E D G A M E P I P E L I N ECombo Quest 2

S e q u e l t o H i t C Q 1

· Unique Time-Tap Mechanic

· Mass Appeal RPG for All Ages

· Version 1.0 Launched on 01/08/15 as a 99 cent,

paid game. Became the #1 Paid RPG on iOS

· CQ1 was featured by Apple four times: as a

“Best New Game”, twice as “Best New Update”

and as a “Free App of the Week”

· CQ2 is the freemium sequel with monetiza-

tion and retention built into the game from the

ground up

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Page 21: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

F U L L F E AT U R E D G A M E P I P E L I N EMiss the Moose

U n i q u e Q u i c k - F i x G a m e

· Quick-fix games have mass appeal and significant

ad revenue potential, with relatively small down-

side risk

· We have had success with prior quick-fix feature

placements including “Best New Games” for

Balance of the Shaolin, Endless Balance, Rotatio,

and others

· Miss the Moose is our latest game within this

genre. It is characterized by addictive gameplay,

beautiful artwork, and a great soundtrack

· We plan on releasing multiple quick-fix games

this year

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Page 22: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

A C Q U I S I T I O N S & P U B L I S H I N GIndustry Fragmentation Creates Large Growth Opportunity

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• We are aggressively pursuing accretive acquitions within evergreen

areas such as social casino

• Within the last 6 months, we have reached out to 100+ targets, have

had 40+ conversations, and have made 2 preliminary acquisition

offers

• We are also exploring publishing transactions, both standalone and as

a first step toward a potential acquisition

Page 23: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

F U T U R E O P P O R T U N I T I E SApple TV, Virtual Reality & Geographic Expansion

The Apple TV platform will challenge PS4

and Xbox One and will bring iOS games to a

new medium with an additional set of

players

22

In 2016, virtual reality is expected to generate

$6.7 billion in revenue and increase tenfold

by 2020. Gaming will be one of the key

categories on VR

Page 24: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

T E A M B I O SManagement

IIYA NIKOLAYEV - Chief Executive OfficerCo-Founder and CEO of Familybuilder until the sale of the Company to Intelius in 2011. He grew the business to profitability, acquired over

45 million users on the web, and over 2 million users on mobile. Mr. Nikolayev was also a cofounder of InAppFuel, a developer of patented

minigame software acquired by Tapinator in 2014. Prior to Familybuilder, Mr. Nikolayev worked in banking for JP Morgan and graduated cum

laude with a BA from New York University.

GEORGI DARAKEV - CTO - Full Featured GamesLed all feature development at Familybuilder. Extensive experience developing successful LAMP (Linux,Apache, MySQL, PHP) applications

and web services. Expertise in scaling applications on AWS, S3, and Rightscale. Built products used by millions monthly on both the web &

mobile. Cofounder of InAppFuel. Mr. Darakev earned his BS in Computer Science from Dowling College.

ROBERT CRATES - Independent DirectorOver 25 years of experience in private equity, investing in a broad range of industries and asset categories. Mr. Crates has served on the

board of directors of numerous public and private companies. Mr. Crates earned his BA from Yale University.

KHURRAM SAMAD - CTO - Rapid Launch GamesFounded GeniTeam, an outsourced development Company focused on mobile with over 80 developers in house. Mr. Samad is an

experienced leader of offshore technical teams with access to superb local talent. Mr. Samad earned a BS in Computer Science from

National University of Computer and Emerging Sciences and an MBA from LUMS.

23

ANDREW MERKATZ - President/CFOAn accomplished entrepreneur with 20+ years of financial operations and transactional experience. Mr. Merkatz spent 6+ years at Vision

Capital where he focused on digital media and software technology. Mr. Merkatz was also a cofounder of InAppFuel and Familybuilder

along with Mr. Nikolayev. Mr. Merkatz earned his BA from University of Pennsylvania (cum laude), and his MBA from Harvard University.

TEYMOUR FARMAN-FARMAIAN - Independent DirectorTeymour Farman-Farmaian was CMO/CRO at Spotify, the world’s leading music streaming service, starting in 2011. He helped triple revenue

growth to hit a $500 million run rate, and achieve 7.5 million DAU. Before Spotify, Teymour worked at Zynga (ZNGA) as GM of Partnerships

and at Google (GOOG) in various sales and operational roles. Teymour earned his BA from Duke University and his MBA from Harvard

University.

Page 25: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

R E V E N U E

O P. I N C O M E ( L O S S )

N E T I N C O M E ( L O S S )

A D J U S T E D E B I T D A*

C A S H

T O TA L A S S E T S

T O TA L L I A B I L I T I E S

S T O C K H O L D E R S ’ E Q U I T Y

6 mo. (inception)DEC 31, 2013

(audited)

$1,755,369

(254,118)

(875,541)

373,187

1,792,224

3,490,683

667,663

3,490,683

24

12 monthsDEC 31, 2014

(audited)

9 monthsSEP 30, 2015(unaudited)

$943,449

24,447

7,892

101,762

121,740

1,569,712

390,206

406,007

$130,980

(17,807)

(17,807)

2,320

12,418

64,254

42,561

21,693

1 1

1 Unaudited

F I N A N C I A L H I G H L I G H T S2015 Audited Results Scheduled for March 2016 Release

* See Adjusted EBITDA footnote on following page.

Page 26: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

*Adjusted EBITDA Disclaimer:We believe Adjusted EBITDA, a non-GAAP, unaudited financial measure, is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance. We believe that:· Adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations and facilitates comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and· It is useful to exclude non-cash charges, such as depreciation and amortization, stock-based compensation and one-time charges from Adjusted EBITDA because the amount of such expense in any specific period may not directly correlate to the underlying performance of our business operations and these expenses can vary significantly between periods.

We use Adjusted EBITDA in conjunction with traditional GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. Adjusted EBITDA should not be viewed in isolation nor considered as a substitute for other measures of financial performance reported in accor-dance with GAAP. There are limitations to using non-GAAP financial measures. One principal limitation is that this measure excludes significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, while depreciation and amortization are non-cash charges, and therefore excluded from Adjusted EBITDA, the assets being depreciated and amortized may have to be replaced in the future. Adjusted EBITDA is subject to inherent limitations as it reflects the exercise of judgment by management about which expenses and income are excluded or included in determining this non-GAAP financial measure. Additionally, other companies may calculate Adjusted EBITDA differently than we do.We compensate for the inherent limitations associated with using Adjusted EBITDA through disclosure of these limitations, presentation of our financial statements in accordance with GAAP and reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income (loss). The Company urges investors to review the reconciliation of its Adjusted EBITDA to the comparable GAAP financial measure which may be found in our quarterly and annual results press releases which may be found at http://www.otcmarkets.com/stock/TAPM/news.

R E V E N U E & A D J U S T E D E B I T D AInvesting In Measured Growth

25

Page 27: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

K E Y FA C T S

SHARE STATISTICS

Trading Symbol (OTC) TAPM

Stock Price (01/20/16) $0.30

Shares Outstanding (12/31/15) 57.1mm

30d Avg. Volume (12/31/15) 50,438

Market Cap (01/20/16) $17.1mm

Float (12/31/15) 8.1mm shares

Insider Ownership (12/31/15) 66.9%

OTHERPersonnel 52 (including contract employees)

Fiscal Year Ends 12/31

Website Tapinator.com

Corporate HQ New York, NY

Legal Quick Law Group

Auditor Liggett, Vogt & Webb, P.A.

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Page 28: Ticker: TAPM An Emerging Mobile Gaming LeaderDeck+02+01+16.pdfAn Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2016. To the extent that statements contained in this ... product

T H A N K Y O U

For more information and a copy of our presentation, go to: http://tapinator.com/investors

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