Distribution Ad Platform_ The Role of Distribution Ad Network.pdf
Investor Deck - August 2018
1. 1
11
SAFE HARBOR STATEMENT: THIS PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS AND ASSUMPTIONS THAT
WILL VARY FROM ACTUALITY. A COMPLETE SAFE HARBOR DISCLAIMER IS INCLUDED LATER IN THIS PRESENTATION.
QTCQB: RWRDP
#GetYourShare
2. 2
Millennials aren’t investing
®
Scared & overwhelmed by student debt and
memories of the recession
They want everything to be free
Most won’t trial crypto
They feel cut out and disenfranchised.
4. 4
Millennials are a tough nut and enormous market
®
Not gamified? Doesn’t exist
Not super easy? Ignored.
Not “an experience”? No value.
Not trendy and “woke”? Blind to it.
5. 5
• 1,900 Retailer relationships
• Privately held / provides infrastructure services to iConsumer
• 21 years experience in rewards & loyalty business at iGive.com
The team that brought you iGive
®
• 35,000 Checks to charities this year
• 350,000 Members
6. 6
Rewards & loyalty space requires tremendous capital
®
Deep pocketed competitors
Race to the bottom – compete on price
7. 7
Rewards & loyalty space under pressure
®
Customer
Acquisition
Cost
Customer
Lifetime Value
8. 8
Worth it - comps at time of exit
®
eBates: $425 per member when acquired by Rakuten
RetailMeNot: 47X earnings high market value
9. 9
In 2015 the law & regs changed – Reg. A+
®
A new kind of reward became practical – publicly traded equity
Lowered cost of becoming public
Lowered cost of being public
Non cash reward
13. 13
®
• OTCQB: RWRDP
52 WEEK RANGE: .02 – 1.05 BEST BID: 0.20 X 10000 BEST ASK: .50 X 5000
$0.02
$0.12
$0.22
$0.32
$0.42
$0.52
Stock Price (5/1 - 7/6)
14. 14
®
Early customers have seen ~4X returns
• Offering Price Sept. 2016 – July 2018
$0.02
$0.12
$0.22
$0.32
$0.42
$0.52
• Initial price: $.045/share Last trade: $.20/share
as of 7/6
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Executive team
Sanford Schleicher
CTO / Co-founder
CTO (2008) iGive
Director j2 Global
Co-founder Onebox
sold to J2 Global
Communications
– 2000
Kimberly Logan
Ops / Co-founder
Manager, Retail
Relationships (2007)
iGive
®
Robert Grosshandler
CEO / Co-founder
Founder (1997), iGive
Founder, eComXpo
Sold to WBR – 2008
Founder, Intercast
Sold to Intel - 1995
Co-founder, SOFTA
Sold to Aegon - 1993
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Blockchain & corporate advisory board - partial
Michael Brennan
Brennan Investments LLC
(Chair/CEO)
U. of Wis. Grasskamp
School
(Executive Director)
First Industrial REIT
(former CEO) (Public -
NYSE)
Lou Kerner
CryptoOracle (partner)
Flight Ventures (partner)
Idealab!
(former CEO of .tv)
®
Andrew “Flip” Filipowski
Fleur.ee (Chair/CEO)
Silk Road (Chair/Chair)
Divine (former Chair) (Public
- Nasdaq)
Platinum Software (former
Chair) (Public - Nasdaq)
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• Risk 3: Gamification
June/July, 2018. OTC trading
• Risk 4: Member acquisition at scale
Summer, 2017. Added 30,000 @<$5 each..
• Risk 1: Becoming and staying public
June, 2018 SEC qualified offering, including BTC. SEC / FINRA /
DTC / OTC approvals complete.
Testing & de-risking
®
• Risk 2: Monetization
2017. Profitable revenue
• Risk 5: Profitable member acquisition
Q1 2018. Low CAC, high CLV, fast payback
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Risk 5: Profitable member acquisition
®
Customer acquisition cost “CAC” (2018 actual): < $10 cash
Customer lifetime value “CLV” (est.): > $75
Payback: < 45 days from acquisition
Airdrops add estimated $20 CLV
Airdrop = free to the recipient
Token/coin Issuers are currently paying $3 per
recipient
Near zero marginal cost to iConsumer to
distribute airdrops to members
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1
Members shop at
1,900+
worldwide retailers
via our platforms
(site, apps,
browser
extensions)
Retailers handle
fulfillment
2
Retailers pay us a
COMMISSION
~1-20% of
purchase
We reward
MEMBER with
stock and Bitcoin
No wallet or
exchange required
3
How we earn money
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Each new customer drives bottom line cash <45 days
®
2017 (actual) 2018 2019 2020
Members 49,989 99,991 679,993 1,375,995
Shoppers 4,736 18,789 165,031 357,025
Revenue ('000s) $416 $2,279 $20,898 $40,433
Cash Gross Profit ('000s) $65 $1,731 $16,172 $29,731
Oper. Cash Flow ('000s) ($764) $276 $7,881 $16,584
SEC Disclaimer: 2018 – 2020 are estimates and projections. See complete
safe harbor statement at the end of this presentation.
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Time to get big
®
Marketing Spend
2016: $ 96,566
2017: $ 201,808
2018: $ 1,000
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Series A funds member acquisition
®
• Prior: $350,000 of friends & family external financing
• Prior: $1,150,00 of iGive funding
• Current membership: 52,000
$500,000 ≈ 100,000 new members
≈ 20,000 new shoppers
≈ cash flow positive
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The Ultimate Goal – Go Public / Get Acquired
®
Traded today on OTC – publicly priced reward
Not truly public – need an underwritten offering
and listing on NASDAQ / NYSE
True liquidity & lower volatility
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THIS PRESENTATION AND ACCOMPANYING TALK CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER
THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE
BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THIS
PRESENTATION THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO
IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS.
THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES
THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS.
INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON
WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO
REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS
THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED
UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. YOU MAY OBTAIN A COPY OF THE
OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT AT https://www.iconsumer.com/offeringcircular.
YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT.
OUR ANNUAL REPORT ON FORM 1-K DISCUSSES SOME OF THE IMPORTANT RISK FACTORS THAT MAY AFFECT OUR BUSINESS, RESULTS OF OPERATIONS,
AND FINANCIAL CONDITION.
SAFE HARBOR STATEMENTS
CONTACT
Robert Grosshandler
847.477.6968
rob@iConsumer.com
