(OTCBB:MIMV) Analytical Profile

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(OTCBB:MIMV) Analytical Profile

  1. 1. ANALYTICAL Equity Research PROFILE 3557 SW Corporate Parkway, Palm City, FL 34990Paul Silver 772-219-7525 November 22, 2011 Valuation - Sensitivity analysis based on price per click and assuming Mimvi reaches 0.10% of Google’s annual queries.OTCBB/OTCQB:MIMV Price per Click ESP Estimate P/E Multiple Future ValueSector: InternetIndustry: Mobile App Search $0.12 $0.04 25 $0.98Risk Level: Speculative $0.15 $0.05 25 $1.22Rating: Buy $0.20 $0.07 25 $1.63 $0.25 $0.08 25 $2.04 See pages 23-24 for more details Statistics11/21/11 Closing Price $0.06Coverage Initiation Price $0.0652 Week High $1.0052 Week Low $0.06Market Capitalization $2.35MEnterprise Value $2.35MShares Outstanding-Primary (9/30/11) 39.20M-Fully Diluted (9/30/11) 39.20M-Float (approximate) 23.46M-10 Day Average Volume 18,713Balance Sheet Data (9/30/11)-Current Assets $0.59M-Current Liabilities $0.63M-Total Assets $0.60M-Total Liabilities $0.63M Source: BigCharts.comInvestment Highlights:• Mimvi enables users to find Mobile Apps and Web Apps via its proprietary search and recommendation engine for Mobile Apps and Web Apps. Its proprietary scientifically-driven search and recommendation algorithms are the most powerful in the world today, returning more searchable results and indexing more apps than any other player in the world today—in excess of six million and 1.2 million respectively. Its engine currently provides results for iPhone, Android, Blackberry, Windows Phone and Web Apps. iPad and Samsung (Bada) platforms are in the pipeline.• The Company’s business model has been validated by recent deals and trends in the increasingly intertwined multi-billion dollar mobile communications and Internet industries.• In December 2010, Mimvi signed an agreement with Intertrust, a private joint venture formed by Sony and Philips, to develop strategic technology related to the mobile and search industries.• The Company is currently in discussion with several Fortune 500 companies to develop licensing agreements and/or joint ventures to integrate its proprietary search technology into app-based platforms.• This new mobile application market is a multi-billion dollar revenue opportunity. According to GIA, the world smartphone apps market is forecast to reach $101.2 billion by the year 2017.Investment Consideration:We are initiating coverage on shares of MIMV with a Buy rating for speculative investors. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved.
  2. 2. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) Table of Contents PageI. Overview Company 3 Application Software 3 A New Disruptive Technology 3 Opportunity 4 Investment Summary/Conclusion 6II. Products and Services Overview 8 Products and Services 8 Two Cutting Edge Mobile Tools 8III. Corporate Strategy Strategic Vision 10 Business Model 10 Revenue Models 12 Strategic Advantage 13IV. Industry Mobile Evolution 14 Asian Market 19 Competition 20 Comparisons 21V. Financial Projections and Valuation Index 22 Sensitivity Analysis 22 Valuation Metrics 24VI. Risks General Risk Factors 25 Risk Factors specific to Industry 25 Risk Factors specific to Company 25VII. Management (Officers & Directors) 27VIII. Corporate Offices and Advisors Corporate Offices and Advisors 31Important Note: This report contains forward-looking statements, particularly as related to pro forma financial statements, earnings estimates andbusiness expectations, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934,and are subject to the safe harbor created by these sections. Any statements that express or involve discussions with respect to predictions,expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact andmay be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statementsare made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presentlyanticipated. These forward-looking statements are only made as of the date of their release and Wall Street Resources and the featured Companyin this report do not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 2
  3. 3. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) I. OVERVIEWCompanyMimvi, Inc. (“Mimvi” or “the Company”) is a pure-play Mobile Apps and Mobile Web Apps search andrecommendation technology company. Using its proprietary search and intelligent recommendationalgorithms, Mimvi‘s powerful search engine provides an industry-leading 6 million + searchableresults for Mobile Apps and Web Apps and has indexed more than 1.2 million Mobile Apps—alsomore than any other Company in the world today. Mimvi’s search engine is used across multiplemobile devices and platforms, including: Apples iPhone, RIM’s BlackBerry, Google’s Android,Windows Phone and Web Apps. Services for iPad and Samsung are in the Company’s pipeline. Mimvi,Inc. (OTCBB: MIMV) was founded in 2010 and is based in Sunnyvale, California.Application SoftwareApplication software, also known as an “app”, is computer software designed to help the user to performspecific tasks. Application software applies the power of a particular computing platform or systemsoftware to a particular purpose. With the growing popularity of mobile technology, specifically smartphones, apps have become increasingly more important in the lives of consumers. Even books andmagazines are turning into applications because it is an easier, faster and richer way to consume contenton a mobile digital device. There is an app for everything and anything one can think of, from healthcare,games, utilities, social, finance etc...The trajectory of growth is far outstripping anything witnessed withthe web. In many respects, apps have become the new “websites”.These powerful standalone programs specialize in doing one thing, such as finding a restaurant in aparticular city or finding the best price for a hotel room. Consumers are drawn to these new apps whichmake tasks less time consuming and/or make their lives easier, more interesting, and more connected.Users generally know what they want in terms of Internet content but do not necessarily know how orwhere to find it. At best, consumers today must spend time to find and organize the Internet and mobilecontent they desire. With respect to apps, as long as the consumer knows the name of a particular apphe/she wants to download, it’s easily accomplished. However, the challenge is when the consumer isunaware of the name, because searching by function is virtually impossible. Searching for apps in theApp Store or Android marketplace is very laborious and frustrating. With Mimvi, the haystack is allneedles.A New Disruptive Technology A Mimvi differentiator: Amazon-like recommendationsMimvi has developed proprietary algorithmictechnology that provides Google-like searchresults combined with Amazon-likerecommendations. This means that Mimvi’ssearch results are relevant and are deliveredwith recommendations, Its search engineenables consumers to find mobile apps,mobile content, and mobile products acrossdifferent devices and platforms including theApple iPhone, Blackberry, Windows Phoneand Google Android. Users can also searchfor web apps. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 3
  4. 4. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Technology Advantage: Long Tail SearchesMimvi covers what are called long tail searches in addition to popular searches. Covering the long tail iswhat made, in part, Amazon successful and Google successful. Businesses that successfully apply thisstrategy allow them to realize significant profit out of selling small volumes of hard-to-find items to manycustomers instead of only selling large volumes of a reduced number of popular items. The total sales ofthis large number of "non-hit items" is called the Long Tail.This is extremely hard to do, and Mimvi has fared much better than its competitors including Apple andGoogle. Below are two examples of long tail searches in comparison to competitors.Search term: "fibonacci numbers"Mimvi: 105 results • Apple: 4 results • Android: 10 results • Yahoo: 13 results • Quixey: 1 result • Chomp: 10 resultsSearch term: "lymph gland"Mimvi: 21 results • Apple: 0 results • Android: 6 results • Yahoo: 4 results • Quixey: 1 result • Chomp: 0 resultsOpportunity Apps are the new websitesThis new mobile application marketis a multi-billion dollar revenueopportunity. Hundreds and billionsof searches will be conducted forrelevant mobile apps, mobilecontent and mobile productsannually across the globe. At stakeis the billions of dollars inadvertising, app sales, and internalapp transactions. Mimvi is the onlypublicly traded pure-playtechnology company whoseproprietary algorithms providesearch and recommendation forapps across different devices andplatforms. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 4
  5. 5. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Mimvi has developed cognitive computing technology which is the basis for its personalized search andrecommendation platform. This technology mimics the way humans process information. The proprietarytechnology is currently applied to automatically organize the world’s mobile apps for consumers andenterprises such as Google, Apple, Baidu, NetFlix and Amazon.Unlike most standard search algorithms that require a lot of active work on the user’s part, Mimvi’scognitive computing algorithms are designed to automate the search, discovery and recommendationprocess with personalization technology. For the consumer, this translates to a better online experience.For developers and advertisers, Mimvi’s search engine will collect and provide valuable usage data; datawhich will enable developers and advertisers to target their consumers with the right offering at the righttime. The world’s social networks and search engines have commoditized information making it ripe forthe application of Mimvi’s technology. The value in this information comes from it being intelligentlyorganized.Mimvi is well positioned to take advantage of this nascent opportunity and is aggressively pursuingmarket share. In December 2010, Mimvi signed an agreement with Intertrust, a private joint ventureformed by Sony and Philips, to develop strategic technology related to the mobile and search industries.In addition, the Company is currently in discussion with several Fortune 500 companies to developlicensing agreements and/or joint ventures to integrate its proprietary search technology into app-based platforms.In addition, Mimvi has created two proprietary and groundbreaking technology solutions. Its Jupitertechnology, which is currently in beta testing, enables anyone with a smartphone to discover relevantmobile apps based on two primary environmental factors: what they see and where they are located. ItsMimviLink™ tool enables companies or individuals with a mobile app to gain greater exposure for theirmobile app by having it matched and displayed next to relevant web content. By signing up for thisservice, publishers can monetize their content each time a user clicks on the relevant mobile appadvertisement. Armed with Jupiter and MimviLink™, the Company is able to develop partnerships forthese new revenue streams on top of traditional search sources, including sponsored search, paid search,and in-app revenue sharing, etc...In short, Mimvi is a revolutionary monetization bridge between the Web Internet and the Mobile (App)Internet. It is a unique and proprietary technology that matches mobile apps to web content rooted inMimvi’s proprietary search and recommendation technology. It represents a new kind of advertisingservice, connecting mobile app publishers to web content publishers.Benefits For Developers Looking to Drive App Sales • Provides greater exposure to drive the sales of mobile apps • Reach a larger audience by engaging people on the webBenefits For Publishers Who Want to Enhance Their Web Offerings and Balance Sheets • Provides additional revenue for your web properties • Websites engage with the Mobile Internet and maximize the value of web real estate • Bridge both Internet worlds, differentiate your website and generate new streams of revenue. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 5
  6. 6. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Investment Summary/ConclusionWe are initiating coverage on Mimvi with a Buy rating for speculative investors. Mimvi is the onlypublicly traded pure play app search play in the world. Its revenue model is simple and Google-like:Monetizing queries and wireless carrier customers via patent pending search technology featuringGoogle-like search words and sponsored results in addition to private label app/content search forwireless carriers who need to fight off Google and Apple taking revenue from their subscribers. Beyondthe proven revenue model of sponsored search results or paid search, Mimvi is positioned to takeadvantage of the revenue model associated with transactions that happen inside mobile apps.The new reality is mobile Internet devices (e.g. smartphones, tablets) are becoming the new browsers andthe mobile application is becoming the new website. This megashift in how people interact and use theInternet makes mobile web apps central to the Mobile Internet. As such, having an agnostic mobile appsearch/recommendation engine is critical to navigating the new ecosystem. Mimvi is the first to marketand has heavy patent pending algorithms and technology to build and retain its mobile app searchleadership providing Google like search and Amazon like recommendation engine.Investment Positives • Mimvi has a number of advantages over the present competition, including its long tail search abilities. • Management has built an effective, powerful technology platform that should serve as a barrier to growth for smaller firms and a barrier to entry for new companies. • Most comprehensive search results and apps indexed. • Google-like features and Amazon-like recommendations—Recommendations are very difficult to do and represent a tremendous barrier to entry. • Management has a proven track record in search (250M monthly searches and 50 million unique monthly visitors) • Scalability to ultimately generate billions in searches. • Capabilities across multiple devices and platforms. • Platform for specific devices and operating systems. • Buckets for key verticals. • Services to-be-launched that could revolutionize traditional search and application/commerce execution. • Presence in China via joint venture. • A considerably undervalued company ripe for a takeover. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 6
  7. 7. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Given the high degree of difficulty in predicting future sales volume and timing, we constructed asensitivity analysis that shows revenues and EPS under certain website traffic, price per click (PPC), andclick through rate assumptions. If for example, Mimvi were able to obtain 0.10% of Google’s querystatistics, and held a 10% click through rate, PPC advertising revenue would be as follows: .10% of Google Queries Price per click 3.0 million 88 million 1.1 billion Daily Monthly Annually $0.12 $36,000 $1,056,000 $13,200,000 $0.15 $45,000 $1,320,000 $16,500,000 $0.20 $60,000 $1,760,000 $22,000,000 $0.25 $75,000 $2,200,000 $27,500,000Because of the variability involved in this analysis and the lack of history, we are not publishing specifictop line, EPS, or 12 month price target guidance, but instead provide a more detailed sensitivity analysison pages 23-24 to explain how different scenarios may play out.Although Mimvi is not certain to be the next Google, it is interesting to compare how investors wouldhave fared if they had invested in Google at Mimvi’s current $10 million market cap. If an investor hadpurchased $1,000 worth of Google shares (theoretically speaking, because Google was not a publiccompany at this market cap and past performance is no guarantee of future results) at this ground floorlevel, that investment today would be worth approximately $19 million. We believe that an investment inshares of Mimvi represents a compelling investment for speculative investors looking for exposure to thebrand new app search market. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 7
  8. 8. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) II. PRODUCTS AND SERVICESOverviewMimvi’s personalization technology platform applies to all content. However, the Company is focusingits technology in the area of search, recommendation and discovery results for mobile apps. The searchtechnology applies to content that exists on the Apple iPhone, Google Android, RIM Blackberry,Samsung and Microsoft Windows Mobile platforms.The fierce competitive landscape of mobile apps has left open the huge opportunity for Mimvi’stechnology to automatically organize and recommend mobile apps for all mobile platforms in a platformagnostic way. Mimvi’s technology unites mobile apps from leading competitors on a search andrecommendation website for the consumer and advertiser.Products and ServicesMimvi’s products are derived from its personalization technology platform.Specialized Web and Mobile Content Aggregation SystemsMimvi’s specialized content aggregation systems target, aggregates and monitors iPhone apps, Androidapps and other mobile app sites and marketplaces such as those provided by Apple, Google and othermobile carries and platforms. Mimvi’s technology generates data that enables advanced search,recommendation and discovery of all mobile apps found on the web and on mobile operating systems.Personalized Search & Recommendation Platforms that Index Mobile ApplicationsSimilar to a major search or recommendation engine, Mimvi intends to be the leading personalizedsearch, discovery and recommendation destination consumer site for Mobile Applications. Mobile appsare being produced at an unprecedented rate and they need to be organized and personalized withsimplicity and power. But they need more than yesterday’s search technology. Mimvi’s personalizedsearch, discovery and recommendation algorithm for mobile applications utilizes cognitive computingalgorithms combining information from the mobile web, major search engines and social networks. Thisalgorithm powers its leading search and recommendation engine along with social components for mobileapplications available to consumers worldwide.Two Cutting Edge Mobile ToolsMimvi, Inc. Introduces Proprietary Mobile App Discovery TechnologyOn Sept. 22, 2011, the Company unveiled a new mobile app discovery service, which, combined with itsproprietary search, recommendation and discovery technology, will revolutionize the way consumersdiscover and gain access to mobile apps.The groundbreaking technology, codenamed Jupiter, is part of a larger “augmented reality” (AR)endeavor that is represented by a series of internal projects code named MAARs (Mobile App AugmentedReality). Powered by Mimvi’s proprietary mobile app and discovery recommendations, Jupiter representsthe first of several upcoming technology announcements the Company is planning to deliver. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 8
  9. 9. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Jupiter technology, which is currently in beta testing, enables anyone with a smartphone to discoverrelevant mobile apps based on two primary environmental factors: what they see and where they arelocated. By simply pointing a smartphone’s camera to any physical object, Mimvi’s proprietaryalgorithms will process what it sees, and in conjunction with the user’s location, smart phone and tabletusers will then be presented with a series of meaningful mobile app recommendations.Kasian Franks, Mimvi’s Founder and CEO, said: “This technology has the potential to revolutionize thesearch industry. Not only will it change the way we discover and shop for products and services, it willprovide owners of mobile devices a tool which could enhance their lives on many other levels. Theeconomic (or revenue), social and cultural opportunities that this initiative can provide are tremendous.The algorithms leverage environmental sensors inherent in smart devices. A smartphone user standing ona street corner anywhere in the world can point his or her phone at a particular location, for instance at ashopping mall, and up will pop mobile apps related to the stores in the shopping mall.”MimviLink™Mimvi is also offering a new service called MimviLink™, which is a unique technology that acts as abridge between mobile apps and web content. MimviLink™ enables companies or individuals with amobile app to gain greater exposure for their mobile app by having it matched and displayed next torelevant web content.By signing up for this service, publishers can monetize their content each time a user clicks on therelevant mobile app advertisement. Thus, the content publisher generates revenue (along with Mimvi) andthe mobile app owner also gains greater exposure and consumer participation. App developers andowners can bid for relevant placement within the MimviLink™ network. The most relevant bidders canhave their mobile app advertisements displayed next to the most relevant web or mobile content. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 9
  10. 10. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) III. CORPORATE STRATEGYStrategic VisionMimvi reflects a passion for the human desire to search and discover, and the belief that sooneverything on the Web will need to be consumed based on simple, powerful personalized search andautomated discovery experience. Mimvi’s vision is to become the gateway or entry point to the MobileInternet, much like Google—the most visited site on the planet.Business ModelThe Company is following the proven business model successfully adopted by the likes of Apple, Baidu,NetFlix, and Google—namely, combining search technology with entertainment content. To do so,Mimvi is initially applying its cognitive computing technology to help people find mobile apps. Mimvi’s StrategyConsumer spending habits have been redefined by recent changes in the world’s economy. In the era ofthis new mobile Internet economy, personalized search and automated discoveries are more importantthan ever in converting consumers into paying customers. Whether the sector is music, movies or books,customers are always looking for guidance and suggestions as to what mobile apps and purchases mightbest suit their desires. This phenomenon has created a large opportunity based on Mimvi’s extensiveexperience with the mobile space, consumer web and enterprise. Companies must move beyond basicunique visitor counts and instead into query counts, visitor retention and multi-path transactionconversion. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 10
  11. 11. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Personalization, recommendation and discoveries have become one of the primary driving factors behindsales. Besides buying things to fulfill direct necessities or desires, customers like to browse to findcomplementary purchases. Consequently, the higher the degree to which mobile app or content ispersonalized, the higher the sales volume will be. More importantly, this is not a linear relationship. Asthe accuracy of discoveries and personalization improve, there is a potential for an exponential growth insales. Good personalization technology increases sales, which produces even further personalization andadditional sales. A small improvement in the ability to personalize or recommend content leads to a largeboost in revenue.Traffic acquisitionThe Company, as a search engine, is focused on acquiring high quality traffic. High quality traffic can bedefined by the number of searches users conduct on the platform. High quality traffic can also be definedby revenue potential. Mimvi’s team has a successful track record of execution on this front.Traffic acquisition can be done using the following techniques: • Partnerships • Ecosystem-based • Organic • Automated Lead Generation • Auto-invitesOrganic traffic and customer growth come from reducing clicks, steps and work both for the consumerand customer while maintaining extremely powerful technology behind the scenes. In addition, Mimvimaintains its own automated lead generation system based on its advanced crawling platform. This, inturn, leads to a cycle of traffic acquisition with a healthy user adoption curve.Transactions, revenue and profit that occur on Mimvi’s personalization platform are composed ofrecommended products, merchandise and advertisements from large companies to individuals. Mimvi’spersonalization technology and algorithms are used to create contextual and relevant matches between thecontent it organizes and the products, merchandise and services from advertisers large and small. Theseapproaches are applied to sponsored search results, in-app transactions and matching mobile apps tomobile content and web content.International VenturesAlong with the U.S. and U.K., countries such as China represent a significant opportunity for Mimvi’ssearch and recommendation technology platforms. Mimvi’s strategy includes leveraging its language-independent approaches to provide superior personalized search and discovery services for mobile apps,web apps, life sciences data and other content in China through its current partners in Hong Kong andgreater China. Other international efforts include countries such as Japan, France, India, Russia and manymore.Intellectual PropertyThe Company is currently in the process of patenting all methods and applications developed. TheCompany is in constant pursuit of patents related to all aspects of its cognitive computing technology,platform and applications. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 11
  12. 12. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Revenue ModelsMimvi’s strategy relates to creating high-value around keywords and content that can be exchanged viaits transaction platform. The Company aims to achieve this with high user retention by offering a seriesof entertainment search, automated discovery and personalization experiences that are more simple andpowerful than any other service. Mimvi’s products and services are tightly integrated with revenueapproaches that stick to the theme of purchasing search results or keywords surrounding automatedcontent driven channel experiences.At present, Mimvi has 6 principal lines of business: • Sponsored Search Results • Enterprise Professional Services • Revenue Sharing • White Labeling of Services • App Development • Application Program Interface (API)Sponsored Search ResultsMimvi charges companies per search to have their product listed when a search is conducted on Mimvi.This is one of the Company’s principal business lines. Advertising rates for websites, or traditionalsearch vehicles (Google, Yahoo, Bing) yield returns of $0.015-$80.00 per click. However, most fall intothe lower end range of $0.15-$0.25 per click. The key to this revenue stream is traffic. Acquiring traffichas a direct correlation to the advertisers Mimvi brings in, and the margins it can charge. One millionqueries per day will yield $150,000-$250,000 per day, assuming traditional metrics. Mimvi will add anautomated email device that allows advertisers to see where they ranked on a given search page, and givesthem an opportunity to pay a small premium ($0.03) to be at the top of the results page, encouragingadvertisers to spend more, which is a recurring theme of Mimvi’s overall strategy.Enterprise Professional ServicesMimvi develops customized solutions (apps, algorithms) for other companies. Mimvi currently has anenterprise contract with Sony for the application of the Seeqpod algorithms into their systems.Revenue SharingIn exchange for preferential treatment, such as being promoted or bumped up on search results, apps willagree to share part of their revenue with Mimvi. Mimvi will also be compensated to power other apprelated search engines with its API technology. Revenue sharing is one of the Company’s other principalbusiness lines. Due to the absence of app specific search engines, there are no standard metrics in-placefor this model.White Labeling of ServicesMimvi allows other companies to market its services, and then is contracted to build and fulfill thecontract. The Company already has a prototype of this revenue stream in the market. The primarybenefit of following a white labeling strategy is that it takes no time or resources to execute until there is acontract. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 12
  13. 13. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)App DevelopmentMimvi will develop apps for consumers and business, converting traditional websites into mobileready/efficient formats. There are four tiers of services and accompanying revenue: 1. Converting websites to a mobile ready format. Using automated “crawlers”, Mimvi converts a site to a mobile ready format. Mimvi estimates that it can charge $2,500 for a basic conversion, with gross margins well north of 50%. 2. Mobile optimization: For a premium, Mimvi will research the client’s website and recommend and implement changes that will make the site more mobile friendly. Mimvi estimates that it can charge $1,000 for the services. 3. Mobile app development: For a premium, Mimvi can build an app for the client and submit it to iTunes or the Android market. Mimvi estimates it can charge $5,000 for this service, as it is labor intensive and the gross margin on this work is below 25%. Once the app is up and running, Mimvi can offer advertising or revenue sharing promotions. 4. Site/app maintenance and upgrades: If a company wants to succeed in the mobile Internet, it will need periodic upgrades to their services. Occasionally, iTunes or Android will make a software upgrade that requires some tweaking of their app or site. Anything tech related requires maintenance. Small contracts range from $7,500 per year to $25,000, $50,000 and up, depending on the complexities of the system. The gross margins on the business are strong, at over 50%.APISearch engines pay to use Mimvi’s technology to power their site. All major website search engines,mainly Google, allow their API services to be hired out. Because of the nascent nature of Mimvi’s appsearch niche, there are no in-place metrics from which to base rates. Mimvi’s engineers can dedicate timeand energies to developing a matrix and implement it as needed.Strategic AdvantageMimvi’s primary competitive advantage is its proprietary set of search and discovery algorithms. Thesealgorithms combined with an experienced management team and a proven strategy for executingcommercial-grade platforms that excite consumers, enterprises and academic institutions separate Mimvifrom its peers. Mimvi’s other competitive advantages include its ability to cross-pollinate user traffic,consumer attention and revenue between its search and discovery properties. Other app search searchengines such as Quixey do not provide Google like search experience with Amazon-likerecommendations, they don’t have algorithms nearly as powerful, they can’t index as much, they generateless searchable results and they haven’t figured out longtail searches.The Company is led by top-notch strategists and engineers in the areas of entertainment technology.Mimvi’s executives are from companies and organizations such as Lawrence Berkeley NationalLaboratory, SeeqPod, Inc., TiVo, MIT and UC Berkeley. Mimvi’s management team’s history includesstrategy and execution that have resulted in platinum enterprise and consumer web offerings, whichinclude being winners of the 2008 R&D100 Award, also known as the “Oscars of Invention”, given bySteven Chu, U.S, Energy Secretary and Lawrence Berkeley National Laboratory for biomimetic searchengine technology.Kasian Franks, former founder, CEO and CVO of SeeqPod, Inc., (sold to a Fortune 100 company for anundisclosed amount) which generated 250 million searches per month and 50 million unique visitors permonth, founded Mimvi, Inc. in 2010. The technology team and advisors continue to evolvebreakthroughs for the consumer, as was done among genomic scientists at the U.S. Department ofEnergys Lawrence Berkeley National Laboratory. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 13
  14. 14. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) IV. INDUSTRYMobile Evolution2011 has been an interesting year for mobile. Verizon Wireless finally got the iPhone. Hewlett-Packardunveiled the first fruits of its Palm purchase last year. Nokia, the worlds biggest maker of handsets,abandoned its once-dominant Symbian mobile software system and demoted itself to a kind of glorifiedcontract manufacturer of Microsoft-powered devices1.The struggle for mobile dominance has entered a new phase. The game has changed from a battle ofdevices to a war of ecosystems. Its the same game that created the most valuable franchises in techhistory, from IBM to Microsoft to Facebook. All players successfully established themselves as"platforms," in which countless entrepreneurs and programmers developed products and applications thatgave value to customers and profitability to shareholders - sucking oxygen away from rivals all the while.In the 1960s, IBM trounced Sperry and other mainframe manufacturers by creating a soup-to-nuts stackof hardware, software and services. In PCs, Microsoft erased Apples early lead by signing up hardwaremakers to create cheap machines, and software companies to develop Windows versions of everythingfrom word processors to Tetris. Facebook vanquished social networks such as MySpace by repositioningitself as a platform - a decision that led to the creation of game maker Zynga and other app companies thatkeep Facebooks 500 million users hanging around. Whats different this time is scale."Mobile is the biggest platform war ever," said Bill Whyman, an analyst with International Strategy &Investment. More smart phones were sold than PCs in the fourth quarter, and sales should reach $120billion this year. That doesnt count billions more in mobile services, ads, and e-commerce.According to Google CEO Eric Schmidt, mobile use is growing faster than all of Google’s internalpredictions, with YouTube seeing 200 million mobile playbacks a day2. As proof of mobile’s growth,Schmidt cited some statistics related to this year’s Super Bowl advertisers: The number of mobilesearches for Chrysler, for instance, jumped 102 times during the game, compared with only 48 times fordesktop searches. And the number of mobile searches for GoDaddy jumped 315 times, compared with 38times on desktops.Shortly following the exit of Google’s former CEO Larry Page, Eric Schmidt is already shifting Google’sfocus with an influx of software developers ready to create Google apps for smart phones, tablets andother mobile devices. In addition to the new hires, Google’s existing employees have changed jobs towork on the apps development effort. This is because Google is trying to capture the billions of dollars tobe made from paid downloads and related advertising. As a result, Android users will see many moreapps for their devices, both those made by Google and by smaller companies.The broad shift in mobile technology is towards the mobile app Internet and the accompanying broaderwave of app development and management. Even at $2.43/app, the app market will emerge as a $38billion market by 2015 as more tablets and smart phones are sold and the number of paid for apps perdevice increases due to improvements in the app store experience3. The convergence of mobile, cloud,and smart computing is creating a perfect storm of innovation. The powerful combination of apps andsmart devices and its potential for new capabilities is now being fully realized.1 Bloomberg Businessweek article titled “Apple, Google’s mobile rivals must play catch up” dated Feb 22, 20112 Keynote address at the Internet Advertising’s Bureau’s Annual Leadership meeting.3 Forrester report titled “The Mobile App Internet: Making Sense of the 2011 Mobile Hysteria” Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 14
  15. 15. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)There is also an estimated $17 billion services opportunity for firms that can build mobile apps foremployees and customers. Corporations will need third-party services firms to manage the devices andapps as well as to set up and to administer their own private label enterprise app stores. And finally, theCIO and business executives will hire consultants to help their reengineer their business processes to takefull advantage of the mobile and tablet apps and innovation.It is estimated that the combined spend on apps and services will be $54.6 billion a year by 2015. Theshift to the mobile App Internet is a game changer that will dramatically impact how traditional softwareis sold and delivered. Every part of the IT delivery system will be affected by these tiny tools, alsoknown as apps.The following three notations are from recently published articles on the size of the mobile app marketand mobile ad spending. While the estimates don’t match due to different sources, different dates anddifferent classifications (e.g. app store revenue vs. apps market), it is evident that the dollar opportunityis multi-billion in scope and growing at a rapid pace.Mobile App Downloads To Reach 98 Billion By 20154According to research from Berg Insight, the number of mobile application downloads will reach 98billion by 2015. The number will grow at a compound annual growth rate (CAGR) of 56.6% between2010 and 2015, the analyst firm reports. App store revenue will also grow, to reach $11.8 billion in 2015.Last year, revenues from paid apps, in-app purchases and subscription services reached $2.15 billion. Thisdirect app store revenue will grow 40.7% from 2010 to 2015 before reaching $11.8 billion.Global Smartphone Apps Market to Reach $101.2 Billion by the year 20175GIA announces the release of a comprehensive global report on Smartphone Apps market. Worldsmartphone apps market is forecast to reach $101.2 billion by the year 2017. Given the positive outlookand encouraging flow of investments despite difficult economic conditions, smartphone apps marketoffers tremendous opportunities for vendors seeking to establish their presence in this domain.4 Article on techcrunch.com published Octber 7, 20115 Report titled “Smartphone Apps: A Global Strategic Business” by Global Industry Analysts, Inc GIA. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 15
  16. 16. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Mobile Ad Spending In The U.S. Expected To Grow 65% In 2011 To $1.2 Billion6Spending on mobile ads is expected to reach $1.23billion this year, according to a revised estimatefrom eMarketer, which represents a 65 percentincrease from 2010. The estimate is slightly up fromthe $1.1 billion number eMarketer put out a yearago.The estimates for future years out are also up. Theyare as follows:Mobile ad spending • 2010: $743 million • 2011: $1.2 billion • 2012: $1.8 billion • 2013: $2.5 billion • 2014: $3.4 billion • 2015: $4.4 billionThese numbers include display, search, text ads, and even video ads (which are the fastest growingmobile ad unit). Mobile video ads are expected to generate $57.6 million this year, and grow at a 69%compound annual rate through 2015, when they are estimated to reach $395.6 million. Next year, mobiledisplay and mobile search will be about even thanks to the growth in app advertising. Each will representalmost $600 million in ad spending in 2012.6 Article on techcrunch.com published October 4th, 2011 Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 16
  17. 17. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)The mobile Internet is taking over the fixed InternetAccording to Morgan Stanley uber-analyst MaryMeeker, there are two overwhelming trends thatwill affect consumers: thehardware/infrastructure industry and thecommercial potential of the web: mobile andsocial networking. According to Meeker, theworld is currently in the midst of the fifth majortechnology cycle of the past half a century. Theprevious four were the mainframe era of the1950s and 60s, the mini-computer era of the1970s and the desktop Internet era of the 80s.The current cycle is the era of the mobileInternet, predicting that within the next fiveyears more users will connect to the Internetover mobile devices than desktop PCs. Thechart below shows the expected convergenceand eventual take-over of mobile Internet users.The adoption of Apple devices, such as theiPhone/iPod touch is taking place more than 11times faster than that of AOL, and severaltimes as fast as that of Netscape back in themid-90’s. The mobile boom will take its tollon carriers because mobile Internet use is allabout data. The average cell-phone usagepattern is 70% voice, while the average iPhoneis 45% voice. Mobile data traffic is expected toincrease by almost 4,000% by 2014, for acumulative annual growth rate of more than100%. These estimates may worry carriers, butthey are a welcome sign for equipmentsuppliers and mobile service companies.One of the implications of mobile access is a growth in e-commerce. Users are more willing to pay forcontent on mobile devices than they are on desktops for a number of reasons, including: • Easy-to-Use/Secure Payment Systems — embedded systems like carrier billing and iTunes allow real-time payment. • Small Price Tags -– most content and subscriptions carry sub-$5 price tags. • Walled Gardens Reduce Piracy -– content exists in proprietary environments, difficult to get pirated content onto mobile devices. • Established Store Fronts -– carrier decks and iTunes store allow easy discovery and purchase. • Personalization -– more important on mobiles than desktops. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 17
  18. 18. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)On the social networking side, socialnetwork use is bigger than email in termsof both aggregate numbers of users andtime spent, and is still growing rapidly.Social networking passed email in terms oftime spent in 2007, hitting about 100billion minutes/month globally — it’s nowtwice that — and passed email in terms ofraw user numbers in July of 2009, withmore than 800 million. Given the rate atwhich Facebook has been growing, thatnumber is probably now closer to a billion.Japan’s experience shows how crucialmobile is to that equation: Mixi, one of thecountry’s largest social networks, has seenits mobile page views grow to 72% of thetotal from just 17% three years ago. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 18
  19. 19. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Asian MarketWhen it comes to mobile phones and smart phones in particular, there is no market quite like the Asia-Pacific. The region is ahead of the world’s most advanced economies in terms of smart phone and overallmobile phone penetration7. The region as a whole had the highest mobile phone penetration in the worldand a willingness to use those phones to shop and play that outstrips other markets.In fact, more consumers in Asia-Pacific (except Australia and Malaysia) find their smart phone moreinteresting than TV than those in the US. Individually, four of the 11 Asia-Pacific markets surveyed hada higher smart phone penetration than the U.S. (31%). This includes Singapore (62%), Australia (37%),Hong Kong (35%) and urban China (35%). The study gathered over 30,000 sample responses, also foundthat smart phone adoption is a recent and widespread trend for the region. Over 80% of smart phoneusers in Indonesia, Australia and India are first-time users.The study found that when on their smart phones, Japanese, Korean and Singaporean consumers use theirsmart phones more intensely than their U.S. counterparts. They surf more, email more, search more andshare more videos. When it comes to social networking, Singaporeans have every other market beat. Theworld’s keenest online mobile shoppers can be found in Southeast Asia. Consumers in Thailand,Singapore and Indonesia are more likely to have made a purchase on their phone than U.S. users, whileconsumers in Malaysia aren’t far behind.According to the study, developing markets in the region are also a potential gold mine for appdevelopers, with more in the region determined to use more apps compared with developed countriesacross the world. For example, 39% of U.S. and U.K. consumers, and 45% of Japanese consumers,intend to use more apps in the future, whereas over 60% cent of Malaysian, Thai and Indian consumers,and 59% of Indonesian consumers intend to do so.It is estimated that small-screen devices will account for 77% of all mobile broadband connections inemerging markets by 2015, equating to 1.6 billion connections. This explosive surge in demand willcreate opportunities and challenges for mobile network operators8.Baidu in China focuses on mobile app platform9Chinas top search engine Baidu, Inc. offered a glimpse of its upcoming mobile operating system andrecently launched a new mobile application platform aimed at bolstering its presence in the increasinglycompetitive mobile web market. The platform, named Baidu Yi, will enable third-party applicationdevelopers to create apps such as games, maps and other tools that they can distribute in a similar way toApple Incs App store. Baidu Yi is modeled on Googles Android mobile operating system and will berolled out to mobile devices in the future.Despite the fact that Baidu’s new homepage may have a negative impact on its revenue by requiring usersto register a Baidu account, potentially reducing traffic on the site, Baidu management acknowledged thefact that this represents the future of the industry. Baidu currently has around 200 million registeredusers.7 Smartphone Research on Mobile Internet and Market Trends, a joint study by Google and Ipsos.8 Mobile market analyst Ovum9 Reuters article “Baidu offers glimpse of new mobile OS” dated September 2, 2011 Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 19
  20. 20. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)CompetitionMimvi’s primary competitors include leading search engines, social networks and companies that have used entertainment content tocapture the attention and loyalty ofconsumers. Some of the householdnames include Google, Apple,Baidu, Amazon and NetFlix.With respect to the niche players, themarket for mobile app searchengines is heating up and the venturecapitalists are taking notice.Appsfire-a French start-up, recentlyraised in $3.6 million in VC money,while Chomp, another apprecommendation service raised $2million in venture capital in March.Quixey, another private app-basedsearch engine competitor, recentlysecured $3.8 million in Series A funding from US Venture Partners along with additional funding($400,000) from Google CEO Eric Schmidt’s investment group, Innovation Endeavors.Mimvi’s proprietary technology and true algorithm-based search is unique among all other app-basedsearch engines in the market today, making it the premier app-based search engine. Relative to its closestpeers: • Mimvi has the only proprietary algorithm based on search technology. • Mimvi is the only one that offers Amazon/B&N-like customer recommendations, which is a critical differentiator based on the success of Amazon’s sales from its recommendations. • Mimvi is the only one with platform specific sites for multiple devices/operating systems. • Mimvi allows user to search for more apps across more platforms. • Mimvi has specialized search capabilities targeting major verticals. • Mimvi’s superior back-end technology gives its users more search results, and more relevant search results than any other app-based search engine, the true standard of search engine quality. • Mimvi is publicly traded, and as such, is the only way for investors to play this high growth new niche. • Mimvi’s management team is the only one with a proven track record of success building search engines. Founder Kasian Frank’s previous search engine endeavor, Seeqpod, Inc., received the 2008 R&D 100 Award—the “Oscars of Innovation,” awarded by Steven Chu, winner of the 1997 Nobel Prize in Physics, and current U.S. Energy Secretary. The site generated 250 million searches and 50 million unique visitors a month. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 20
  21. 21. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Below is a 7-prong matrix comparing Mimvi with these smaller app-based search engine comps. Competitive LandscapeComparisonsTypically, in our research reports, we compare the featured company with publicly traded comps to get asense of how the market is valuing its peers. In this case, because Mimvi is the only publicly traded,pure-play app search, there are no real comps with which to compare the Company. This presentsinvestors with increased uncertainly with respect to estimating value for shares of MIMV. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 21
  22. 22. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) V. FINANCIALSIndex Sensitivity Analysis Valuation MetricsSensitivity AnalysisThere are three significant variables that need to be considered when projecting revenues fromPPC (pay per click) advertising: • Website Traffic • Price per click • Click through rateThe following sensitivity analysis matrix shows revenue based on varying levels of traffic to thewebsite, 4 different prices per click, and an average click through rate of 10%. $0.12 per click Clickthrough rate of 10% # of Queries Daily Revenue Monthly Revenue Yearly Revenue 250,000 $3,000 $90,000 $1,095,000 500,000 $6,000 $180,000 $2,190,000 1,000,000 $12,000 $360,000 $4,380,000 1,500,000 $18,000 $540,000 $6,570,000 $0.15 per click Clickthrough rate of 10% # of Queries Daily Revenue Monthly Revenue Yearly Revenue 250,000 $3,750 $112,500 $1,368,750 500,000 $7,500 $225,000 $2,737,500 1,000,000 $15,000 $450,000 $5,475,000 1,500,000 $22,500 $675,000 $8,212,500 $0.20 per click Clickthrough rate of 10% # of Queries Daily Revenue Monthly Revenue Yearly Revenue 250,000 $5,000 $150,000 $1,825,000 500,000 $10,000 $300,000 $3,650,000 1,000,000 $20,000 $600,000 $7,300,000 1,500,000 $30,000 $900,000 $10,950,000 $0.25 per click Clickthrough rate of 10% # of Queries Daily Revenue Monthly Revenue Yearly Revenue 250,000 $6,250 $187,500 $2,281,250 500,000 $12,500 $375,000 $4,562,500 1,000,000 $25,000 $750,000 $9,125,000 1,500,000 $37,500 $1,125,000 $13,687,500 Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 22
  23. 23. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Consider the following statistics: Queries Daily Monthly Annually Google 3 billion 88 billion 1.1 trillion Yahoo 315 million 9.4 billion 112 billion Bing 135 million 4.1 billion 49 billionIf Mimvi were able to obtain 0.10% of Google’s query statistics, and held a 10% click through rate, PPCadvertising revenue would be as follows: .10% of Google Queries Price per click 3.0 million 88 million 1.1 billion Daily Monthly Annually $0.12 $36,000 $1,056,000 $13,200,000 $0.15 $45,000 $1,320,000 $16,500,000 $0.20 $60,000 $1,760,000 $22,000,000 $0.25 $75,000 $2,200,000 $27,500,000Assuming a net (after tax) margin of 10%, Mimvi’s net income would approximate the following10: .10% of Google Queries Price per click 7.5 million 220 million 2.75 billion Daily Monthly Annually $0.12 $3,600 $105,600 $1,320,000 $0.15 $4,500 $132,000 $1,650,000 $0.20 $6,000 $176,000 $2,200,000 $0.25 $7,500 $220,000 $2,750,000It is important to note that this represents one of the primary revenue generators for the Company, but isNOT the sole revenue source. The Company will also make revenues from revenue sharing, whitelabeling, app development, and API.10 We note that Google’s net margins over the past three fiscal years have ranged from a low of 19.3% to a high of29.0% Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 23
  24. 24. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) Valuation MetricsGiven the Company’s position as the only publicly traded company in this nascent space, it is extremelychallenging to try to project revenues by year. As such, we have laid out a sensitivity analysis in thesection on pages 23-24 that shows the Company’s PPC revenue based on range of assumptions. Thefollowing EPS projections assume a 10% net margin (Google’s net margins over the prior three yearsrange from 20%-30%), and show how EPS varies depending upon the price per click and on the volumeas a percentage of Google’s click through rate. Because we don’t have a timetable by which we expectthe Company to hit these hurdles, we can only calculate these estimates and provide investors with abroad range of estimates based on different scenarios. Price per click @ 0.10% @ 1.0% @ 10% EPS EPS EPS $0.12 $0.04 $0.39 $0.78 $0.15 $0.05 $0.49 $0.98 $0.20 $0.07 $0.65 $1.30 $0.25 $0.08 $0.81 $1.63An an example, we provide the following valuation calculation assuming the 0.10% case scenario at thelowest price point using a 35% discount rate and a 25 times EPS multiple given in the year 2013. Price to Earnings 12-Month Earnings Multiple Future Discount Target Year Estimate (X) Value Rate Value 2013 $0.04 25 $0.98 35% $0.72 Average: $0.72We calculate, in this specific scenario, a 12 month target price of $0.72 per share for Mimvi. Anyvariation from this scenario will greatly impact the value of the Company’s shares. We invite investors toconsider their own scenarios based on the facts in this report. Once again, we remind investors that this isonly one of the Company’s expected sources of revenues. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 24
  25. 25. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) VI. RISKSGeneral Risk FactorsFollowing are some general risk factors: (1) Industry fundamentals with respect to customer demand orproduct / service pricing could change and adversely impact expected revenues and earnings; (2) Issuesrelating to major competitors or market shares or new product expectations could change investorattitudes toward the sector or this stock; (3) Unforeseen developments with respect to the management,financial condition or accounting policies or practices could alter the prospective valuation; or (4)External factors that affect the U.S. economy, interest rates, the U.S. dollar or major segments of theeconomy could alter investor confidence and investment prospects. International investments involveadditional risks such as currency fluctuations, differing financial accounting standards, and possiblepolitical and economic instability.Risk Factors Specific to IndustryThe success of any Internet search engine business depends on providing products and services that makeusing the Internet a more useful and enjoyable experience for its users. Competitors are constantlydeveloping innovations in web search, online advertising, and web-based products and services. As aresult, companies in this space must continue to invest significant resources in research and developmentin order to enhance their web search technology and existing products and services, and introduce newproducts and services that people can easily and effectively use. If the company is unable to providequality products and services, then its users may become dissatisfied and move to a competitor’s productsand services. In addition, these new products and services may present new and difficult technologychallenges, and we may be subject to claims if users of these offerings experience service disruptions orfailures or other quality issues. As search technology continues to develop, competitors may be able tooffer search results that are, or that are seen to be, substantially similar to or better than the company’s.Risk Factors Specific to CompanyCompetition RiskThe Company’s business is rapidly evolving and intensely competitive, and is subject to changingtechnology, shifting user needs, and frequent introductions of new products and services. The Companyhas many competitors in different industries, including general purpose search engines, vertical searchengines and e-commerce sites, social networking sites, traditional media companies, and providers ofonline products and services. The Company’s current and potential competitors range from large andestablished companies to emerging start-ups. Established companies have longer operating histories andmore established relationships with customers and users, and they can use their experience and resourcesagainst Mimvi in a variety of competitive ways, including by making acquisitions, investing aggressivelyin research and development, and competing aggressively for advertisers and websites. If Mimvi’scompetitors are more successful in developing compelling products or in attracting and retaining users,advertisers, and content providers, its revenues and growth rates could be adversely affected.Execution RiskAs with any early stage company implementing an aggressive growth plan, Mimvi’ success or failure willdepend on management’s ability to execute their business plan in an efficient and timely manner. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 25
  26. 26. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)Financial RiskThe Company is dependent on continued financing from outside investors due to recurring operatinglosses. As a result, the Company’s ability to continue as a going concern could depend upon its ability toobtain the necessary financing to meet its obligations and repay its liabilities arising from normal businessoperations when they become due and to generate profitable operations in the future. There can be noassurance that any funding would be attainable or attainable on favorable terms, thus investors should befinancially capable of losing all or a portion of their investment.Key Management RiskManagement’s skill and experience is a key determinant of success. Mimvi, like most small companies,is heavily dependent on key management, the loss of any of which could seriously, adversely affect thecompany.Micro-capital Investment RiskMicro-capital investing involves inherent risk and investors should carefully research any companyconsidered for investment. Micro-capital companies are usually early in their market cycle andvulnerable to significant price volatility.Non-Specific Market Risks (Liquidity, trading rules & BD restrictions)Mimvi’s common stock is quoted on the Over-the-Counter (“OTCBB”) as such; there is only a limitedtrading market for its common stock. As a result, the Company’s common stock is subject to the pennystock rules by the Securities and Exchange Commission that requires brokers to provide extensivedisclosure to its customers prior to executing trades in penny stocks, and as such there may be a reductionin the trading activity of its common stock. As a result, investors may find it difficult to sell their sharesof the Company’s common stock.Risk CategoriesWSR’s investment universe revolves around undiscovered emerging growth companies that possesshigher risk profiles than established “blue chip” companies. Presently WSR maintains three riskcategories including growth, aggressive growth and speculative with the later assigned to higher riskcompanies.Growth – Lower risk investment relative to small capital company investments with a defined revenuepattern, reasonable earnings predictability and sound balance sheet.Aggressive Growth – Average to higher risk investment relative to small capital company investments ina high growth stage or industry. May have limited history of generating revenue or be operating in ahighly competitive or rapidly changing environment. Investors must have the financial capacity to lose asignificant portion of his or her investment.Speculation - High risk investment with short or unprofitable operating history and limited revenue orearnings predictability. Companies are typically early stage and in the process of commercializing a newand often potentially disruptive technology into a large market. Investors must have the financial capacityto lose his or her entire investment. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 26
  27. 27. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) VII. MANAGEMENT AND DIRECTORSOfficers, Directors and Key ManagementName Age PositionKasian Franks 40 Chief Executive Officer and FounderMichael Poutre 40 President and COOCaleb Pate 40 Content and MediaAlain Mahmoud 38 VP of BrandMatt Hamilton 40 VP of OperationsKasian Franks, CEO and FounderMr. Kasian Franks is the Technical Founder of Mimvi, Inc and has been its Chairman of the Board andChief Executive Officer since January 15, 2010. Mr. Franks has been the Chief Financial Officer,Secretary and Treasurer of Mimvi, Inc. since March 15, 2011 and also serves as its President. Hepreviously served as Chief Executive Officer of SeeqPod, Inc., a successful search engine. He has alsoserved as a Software Engineer and Product Developer, specializing in pattern matching algorithms andtools for companies and organizations such as Sun Microsystems, Oracle, Motorola, Tivo, mPower, andX-Mine. Mr. Franks worked at the U.S. Department of Energys Lawrence Berkeley National Laboratory(LBNL), Life Sciences Division, as a Genomic Research Scientist from 2002 to 2005. in 2008 he receivedthe 2008 R&D 100 Award—the “Oscars of Innovation,” awarded by Steven Chu, winner of the 1997Nobel Prize in Physics, and current U.S. Energy Secretary.Michael Poutre, President and COOMike joined the Company in August of 2011. Since then, he has been leveraging his considerableexperience in operations, particularly in relation to public companies. Mike is a 20 year veteran of thesecurities industry. His experience ranges from working at some of the largest wire house firms in theworld, to having owned his own broker-dealer. In addition, he co-founded and operated the first open-end, actively-managed Israeli stock mutual fund in the United States. Under his leadership as Presidentand Chief Compliance Officer, The Blue and White Fund had considerable success, soundly beating allits benchmarks, while proactively protecting the investments of all shareholders.Mr. Poutre also has many years of experience in the capital markets as a portfolio manager, and has beencited or featured in numerous premier financial publications, including Forbes, Business Week, The NewYork Times and The Los Angeles Times. Mike is currently an MBA candidate at California LutheranUniversity and sits on the advisory board of the Center for Economic Research & Forecasting at theuniversity.Caleb Pate, Content and Media StrategistMr. Pate is the media, content and music Industry Strategist for Mimvi. Mr. Pate is also founder ofPacific Radio Fire Records and a member of the American Society of Composers and Producers(ASCAP). Caleb maintains a world-wide deal with Zomba/BMG Music Publishing and is member of theband Seventeen Evergreen with forthcoming UK/European releases of full-length albums licensed for theUK and Japanese markets. Their songs have been featured in recent Summit Entertainment filmBandslam with Vanessa Hudgens as well as various BBC and ITV television programs. He has also Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 27
  28. 28. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)appeared on BBC Radio One, BBC Six Music and XFM. Mr. Pate has released an album in the CMJ Top100 of 2005, available domestically and on iTunes. He also has 15 years software, Internet and e-commerce experience in analyzing user behavior and digital commerce patterns with UpSide Magazine,Bank of America, Wells Fargo, PointConnect and HeadLight.com. Caleb has a proven team leadershiprecord, managing search engine media content curation efforts and editorial content development.Alain Mahmoud, VP of BrandMr. Mahmoud is an award-winning brand and marketing strategist. He brings a comprehensive businesstoolkit to Mimvi, from planning through delivery. His experience spans over 60 brands across more than30 industries and 100+ countries worldwide.Mr. Mahmoud has worked on both the client and agency side for B.A.T., Y&R, Richemont (FMCG) andBedrock (Brand Consultants) across a multitude of functions, including: brand and communicationsstrategy (internal and external), brand management, strategic (business) planning, advertising (planningand account management), verbal branding, project management, interactive branding, trade marketingdevelopment (CRM) and sales.Mr. Mahmoud’s brand experience is equally diverse, encompassing global, regional and localpropositions: corporate, divisional, product and service. Mr. Mahmoud holds a Bachelor of Science inBusiness and Management Studies (Four Year Honors) from Bradford Universitys School ofManagement.Matt Hamilton, VP of OperationsMatthew Hamilton is an internet entrepreneur with a background in Mechanical Engineering. For the pastsix years he has managed teams of scientists and engineers at some of the largest companies in thesemiconductor space including Applied Materials and LAM Research.Mr. Hamilton is a long time classic car collector with a passion for Alfa Romeos. His blog,www.giuliettas.com , has grown to become the number one destination worldwide for enthusiasts of AlfaRomeos 1954 - 1965 Giulietta line. In his spare time he restores and drives his cars in rallies. Matthew isalso a musician and aspiring novelist. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 28
  29. 29. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)ADVISORSJoe AbramsMr. Abrams specializes in working with small technology companies to build shareholder value in thepublic markets. As a direct result of his efforts, he has completed merger and acquisition transactions inexcess of $1 billion and small cap market equity raises in excess of $200 million. Mr. Abrams co-founded Intermix in 1998, the predecessor company to MySpace, which was sold to News Corp. in 2005for $580 million. In 1983, Mr. Abrams co-founded The Software Toolworks, Inc., a publicly helddeveloper, publisher, and distributor of educational and entertainment software, which was sold toPearson, Plc. in 1994 for $462 million.Daiwa Quantum CapitalDaiwa Quantum Capital, led by the former CEO of Sony Nobuyuki Idei, seeks growth capitalopportunities in Asia with a particular emphasis on applying Japanese resources to its investments. TheGeneral Partner was founded by Daiwa Securities SMBC Principal Investments, a unit of DaiwaSecurities SMBC and Quantum Leaps Corporation. See: http://www.dqcap.com.By way of background, Sumitomo Mitsui Banking Corporation (“SMBC”) is a leading Japanese financialservices firm with more than JPY 100 trillion (approx. $1 trillion) in assets. Quantum Leaps, founded byNobuyuki Idei (ex-Group CEO of Sony Corp), is a business incubation and strategy consulting firm. It isalso a leading venue for exchanging ideas among CEOs of Asian and Western companies. The investmentteam of the Fund includes senior professionals from the Asia-team of DPI and Quantum Leaps.Since 2001, DPI has invested more than JPY 800 billion (approx. $8 billion) in private equity and realestate in Japan and worldwide.Mina BissellMina Bissell has been recognized for her lifetime contributions to the fields of breast cancer research, theenhanced role of extracellular matrix (ECM) and the nucleus environment to gene expression in normaland malignant tissues. These works have ushered and changed some central paradigms that havestrengthened the importance of context in the development of cancer. She has received numerousrecognitions. -NY Times "Old Ideas Spur New Approaches in Cancer Fight" -The Mina J. Bissell Award -American Cancer Society’s Medal of Honor -INSERM Annual International Award -American Philosophical Society -Pezcoller Foundation-AACR International Award for Cancer Research -Federation of American Societies for Experimental Biology Excellence in Science See also http://www.lbl.gov/LBL-Programs/lifesciences/BissellLab/main.htmlDr. Gordon ChiuDr. Chiu is an execution driven businessman with more than 15 years of combined domestic andinternational experience in biomedical, chemical, cosmetic, medical and technology industries. He has Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 29
  30. 30. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV)been invited to serve on the board of public and private companies and to provide vital advice to theboard while increasing overall shareholder value.Dr. Chiu’s background and experience has led to numerous accomplishments across fields, including:Alzheimer research, breast cancer research, dermatology, drug addictions research, green technology andantimicrobial research. He started his career as a research scientist at Pfizer Inc and Merck & Co. Inc. Hishealthcare and marketing experience includes strong links to both Wall Street and Asia.Dr. Chiu’s educational background began with a B.S. degree in Chemistry from Rensselaer PolytechnicInstitute with a summa cum laude. He graduated with an M.S. degree in Chemistry from Seton HallUniversity with high honors. Additionally, Dr. Chiu was accepted as an MD/PhD candidate under theNational Institutes of Healths Medical Scientist Training Program for four years at the Mount SinaiSchool of Medicine where he also researched, developed, consulted and advised the Department ofDermatologys Dr. Huachen Wei in skin cancer research. Seeing the opportunity to impact foreignpolicies in healthcare, he transferred his credentials to University of Bridgeport School of NaturopathicMedicine where he received his doctorate in naturopathic medicine.With this unique background, he has investigated the validity of foreign treatments and their success levelfor public health. He has also been chosen to serve an advisory role in the identification of low costsolutions (i.e. non-invasive diagnostic equipment) for emerging countries that cannot afford to maintainarmies of physicians across numerous sub-specialties. Dr. Chiu developed and owns methodologies calleddirected combinatorial algorithmic libraries (D.C.A.L.) that are used in various commercial applications,composition development and research.Andre de SouzaAndré de Souza is a Corporate and Business Development professional who has led many successes atstartup, growth and enterprise levels. Mr. de Souza has a diverse background in strategic alliancebuilding, innovative solution development, and has excelled at delivering POC/ Design/ OEM/ Channelwins, with a special focus on innovative early stage companies.Mr. de Souza co-founded Corundum Consultancy, an Irish-based firm providing advisory and businessacceleration services to high potential startup companies and spin-outs from leading universities. In thisrole he served as a catalyst to attain rapid corporate development and introduction to strategically chosenSilicon Valley based funding and technology partners, and he helped launch a company aimed atdelivering personalized, destination-specific content to mobile phones.Formerly Director of Global Strategic Alliances for BEA Systems, he managed corporate developmentwith top-tier strategic partners as well as joint R&D, engineering, sales development and marketingefforts influencing over $600 million in partner revenue per annum. Prior experience includes executivemanagement at Tarantella (Sun Microsystems) and Cambridge Technology Partners, where he led thecompany’s first Venture investment in a partner company. Mr. de Souza led business developmentactivities and served as Entrepreneur in Residence for a boutique entrepreneurial bank, where he co-founded three companies. He also co-founded Hurst Technologies, an IT firm in the energy sector, wherehe served as COO and grew the company from a two-man entity to over 40 engineers and $5 million infour years.Mr. de Souza holds a Master of Science in Biomedical Engineering and a Bachelor of Science inMechanical Engineering. A certified Professional Engineer, he has also held an NASD Series 7 SecuritiesLicense. Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 30
  31. 31. Equity Research Mimvi, Inc. (OTCBB/OTCQB:MIMV) VIII. CORPORATE OFFICES & ADVISORSMimvi Inc.440 N. Wolfe RoadSunnyvale CA94085Phone: 510-552-2811Website: http://www.mimvi.comReport ContactPaul SilverWall Street Resources, Inc.3557 SW Corporate ParkwayPalm City, FL 34990(772) 219-7525 (Tel)(772) 219-3579 (Fax)psilver@wallstreetresources.netwww.WallStreetResources.net/Mimvi.asp Please refer to important disclosures at the end of this report. Copyright © 2011 by Wall Street Resources, Inc., all rights reserved. 31

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