Investor PresentationJoe AlemanTim SzalMichael KriegerJeremy Zoerman

Our Business• We are a mobile application and e-book advertising service

that allows mobile application developers and e-book publishers to advertise through our kiosks located at the most highly trafficked areas

• Our website will allow customers to get information on different mobile applications that we advertise and where our kiosks can be found

• Currently, there is no “try before you download” experience for mobile applications, and our kiosks facilitate it through the mounted tablet computers

• It can be challenging for small application developers to get noticed in the market, and our service allows them to develop their reputation

Our Team• Joe Aleman – Chief Executive Officer• Former Founder of

• Tim Szal – Chief Design Officer• Founded Szal Design, his own design company

• Michael Krieger – Chief Strategy Officer• Co-Founded Health Innovators, a nonprofit organization in

Greater Boston that promotes health innovation• Jeremy Zoerman – Chief Technology Officer• Founded Sarasota Webs in 2009

Future Team Member Growth• Immediately after funding• 6 salespeople• Sales manager

• Longer Term (mostly consistent with sales growth)• Additional Salespeople to support company growth• Additional Customer Service Representatives and Administrative

Assistants• Handles additional processing tasks such as managing advertising

card printing• Marketing associates

Market Opportunity• Any individual or company that develops mobile device

applications that is looking to advertise in a bricks and mortar environment• Target market: the 25 largest companies that earn 50% in revenue

directly associated with mobile application• Businesses that use mobile applications as a valuable complement to

their other channels of business• 15,000 mobile applications are created each week• Our service enables advertisers to advertise applications that are

only relevant to a particular area• Mobile application developers spend an average of $1.63 to

attract a new user• Developers spent $2.6 billion advertising their applications in 2012• Willingness to pay a modest premium for the given visibility because

they will value our “Try Before you Buy Experience”

Competitors• Direct competitors:• Paid Search Listings, such as Google Adwords• Blogging• Social Media

• Indirect competitors• Traditional media

• Not currently widely used by mobile application developers because of affordability

Features Comparison: Apposk vs Google AdwordsApposk Google Adwords

Customized “Try before you download” experience

Trial experience limited to words and links to other forms of media

Targeted advertising by geography Targeted advertising by Keyword

Predictable monthly cost per location Cost is controlled by daily budget

Advertisement stays up for the month Advertisement is deactivated once budget is reached

Features Comparison: Apposk vs Social MediaApposk Social Media

Customized “Try before you download” experience

Pictures, text, and video can be utilized

Results achieved through the customization of advertisement, stays up for the month, and is dependent in number of locations advertised at

Much effort is needed to attract engage following, which then gets results

Predictable monthly cost per location Cost is mostly related to labor to run social media campaign

Significant results can be achieved in as little as 30 days

Long time needed to achieve significant results

Our Solution• Each location will have a sufficient amount of space for 200 to

600 advertisement card spaces• Each application will have a box that holds cards that have a

width of 2.05” and a length of 3.54”• Boxes will be made such that the box will cover 2.88” of the

card, which means that 0.66” of the card will be visible• Four tablets will be secured to each display• Two tablets will be Android tablets• Two tablets will be iPad tablets

• We will have an advertising banner from a national advertising sponsor on high, tough to reach spots• Dependent upon restrictions on how high we can build a display

and advertiser interest

Performance• Mobile application developers who we have spoken to are

interested in the service, and would be willing to pay $150 per month per kiosk for advertising with us

• Local businesses are similarly interested in advertising with us at $150 per month per kiosk

Competitive Advantages• “Try before you download” experience• Localized advertising that can be customized at each kiosk• A/B testing is easily achievable

• Extremely effective in high traffic areas• Advertising cards make it easy to share new and interesting

mobile applications• Advertising campaigns can be easily run to accommodate

seasonal business needs

Business Model• $199 for each mobile application advertisement per month

per location• $99 for each e-book advertisement per month per location• Advertising costs are due at five days prior to the beginning of

each month• Pricing will be dynamically managed as it is subject to change

based on demand at each of our locations• 2% churn rate per month is expected• Includes the expected level of season advertising

Website• Our website will allow customers to get information on the

different mobile applications and e-books that we advertise and where our kiosks can be found

• Detailed information and reviews will be available for all of the mobile applications that we advertise

Marketing Strategy• Emphasis put on “Try before you download” experience and

ability to target through geography• Run social media marketing campaigns• Search engine optimization and paid search listings• Directly reach out to key decision makers at larger companies

through InMail on LinkedIn• Showcase our services at events that appeal to them• We plan to gradually expand our initiatives over time through

salespeople who will engage mobile application developers in major cities in the United States

• We will place our own advertisements on vacant spots on our kiosks.

Marketing Strategy• Relatively short sales cycle• Ranges from an immediate sale for independent mobile

application developers to 2-3 weeks for large companies• Average revenue per user is initially expected to be the price

of advertising at one board• Expected to steadily grow as we are able to construct displays at

new locations• Mainly limited to our ability to secure locations with high foot traffic• Partnerships secured with MBTA and major mall operators such as Simon

Malls

• Cost of customer acquistion• $150 per advertisement during 2014• Steadily increased to $200 per advertisement through 2016 to

reinvest profits into growth

Financial Projections – Kiosk Specific Costs• Costs to install a kiosk at an individual location include:• $7000 for the board, which includes fabrication and installation

of the display• $10 each for the individual boxes• $1500 for the two iPad tablets that would be on each display• $800 for the two Android tablets that would be on each display• $.045 for each card printed for each display per month

• 250 cards printed per advertisement

Condensed Pro-Forma Income Statement

• Revenue of $186 million is expected to be equivalent to 6% market share assuming growth rate remains steady

2014 2015 2016 2017

Revenue $ 6,588,314 $ 43,800,415 $ 99,481,500 $ 170,206,654

Expenses $ 1,984,953 $ 9,955,179 $ 13,250,114 $ 20,983,249

Operating Income $ 4,603,361 $ 33,845,236 $ 86,231,386 $ 149,223,405

Depreciation $ 12,225 $ 61,125 $ 126,325 $ 224,125 Taxes $ 1,150,840 $ 8,461,309 $ 21,557,846 $ 37,305,851 Net Income $ 3,440,296 $ 25,322,802 $ 64,547,214 $ 111,693,429 PV of Cash Flows $ 186,354,976.79 ROI on $150,000 investment for 15% 18535.50%

Growth Plans• We plan to open 9 locations by the end of 2014, 45 locations

by the end of 2015, 93 locations by the end of 2016, and 165 by the end of 2017

• Factors that may change growth in kiosk locations• Our clients’ appetites to advertise at additional locations• Leasing costs at high foot traffic locations• Occupancy rate of existing boards

Risks• Our attrition rate may change depending on a number of

uncontrollable factors• Overall economic environment• Changes in revenue of mobile application companies, and other

companies who use mobile applications as a channel of doing business• We may need to supply each mobile application being advertised at

our displays with more than 250 cards per month to keep clients satisfied

• The amount of people who decide to download a mobile application or take a card may be lower than our projections

• Changes in the foot traffic at a particular kiosk may affect the number of downloads of certain mobile applications

• Rent for our kiosk locations may increase• Our displays’ abilities to remain at a location may be affected by our

relationship with our landlord

Exit Strategy• Coinstar can be targeted when we decide to sell the business• Similar business dynamics are present when our business is

compared to their movie rental and coin counting businesses.• Possible synergies would be produced through operating in

similar locations