OTCBB/OTCQB:MIMV Sector: Internet Industry: Mobile App Search Risk Level: Speculative Rating: Buy See pages 23-24 for more details
Source: BigCharts.com
Investment 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.
Valuation - Sensitivity analysis based on price per click and assuming Mimvi reaches 0.10% of Google’s annual queries.
Price per Click ESP Estimate P/E Multiple Future Value
Company 3 Application Software 3 A New Disruptive Technology 3 Opportunity 4 Investment Summary/Conclusion 6
II. Products and Services
Overview 8 Products and Services 8 Two Cutting Edge Mobile Tools 8
III. Corporate Strategy Strategic Vision 10 Business Model 10 Revenue Models 12 Strategic Advantage 13 IV. Industry Mobile Evolution 14 Asian Market 19 Competition 20 Comparisons 21 V. Financial Projections and Valuation
Index 22 Sensitivity Analysis 22 Valuation Metrics 24
VI. Risks General Risk Factors 25 Risk Factors specific to Industry 25 Risk Factors specific to Company 25
VII. Management (Officers & Directors) 27 VIII. Corporate Offices and Advisors
Corporate Offices and Advisors 31 Important Note: This report contains forward-looking statements, particularly as related to pro forma financial statements, earnings estimates and business 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 and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. These forward-looking statements are only made as of the date of their release and Wall Street Resources and the featured Company in 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.
I. OVERVIEW Company Mimvi, Inc. (“Mimvi” or “the Company”) is a pure-play Mobile Apps and Mobile Web Apps search and recommendation technology company. Using its proprietary search and intelligent recommendation algorithms, Mimvi‘s powerful search engine provides an industry-leading 6 million + searchable results for Mobile Apps and Web Apps and has indexed more than 1.2 million Mobile Apps—also more than any other Company in the world today. Mimvi’s search engine is used across multiple mobile devices and platforms, including: Apple's 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 Software Application software, also known as an “app”, is computer software designed to help the user to perform specific tasks. Application software applies the power of a particular computing platform or system software to a particular purpose. With the growing popularity of mobile technology, specifically smart phones, apps have become increasingly more important in the lives of consumers. Even books and magazines are turning into applications because it is an easier, faster and richer way to consume content on 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 with the 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 a particular city or finding the best price for a hotel room. Consumers are drawn to these new apps which make 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 or where to find it. At best, consumers today must spend time to find and organize the Internet and mobile content they desire. With respect to apps, as long as the consumer knows the name of a particular app he/she wants to download, it’s easily accomplished. However, the challenge is when the consumer is unaware of the name, because searching by function is virtually impossible. Searching for apps in the App Store or Android marketplace is very laborious and frustrating. With Mimvi, the haystack is all needles. A New Disruptive Technology Mimvi has developed proprietary algorithmic technology that provides Google-like search results combined with Amazon-like recommendations. This means that Mimvi’s search results are relevant and are delivered with recommendations, Its search engine enables consumers to find mobile apps, mobile content, and mobile products across different devices and platforms including the Apple iPhone, Blackberry, Windows Phone and Google Android. Users can also search for web apps.
A Mimvi differentiator: Amazon-like recommendations
Please refer to important disclosures at the end of this report.
Technology Advantage: Long Tail Searches Mimvi covers what are called long tail searches in addition to popular searches. Covering the long tail is what made, in part, Amazon successful and Google successful. Businesses that successfully apply this strategy allow them to realize significant profit out of selling small volumes of hard-to-find items to many customers instead of only selling large volumes of a reduced number of popular items. The total sales of this 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 and Google. Below are two examples of long tail searches in comparison to competitors. Search term: "fibonacci numbers" Mimvi: 105 results
Opportunity This new mobile application market is a multi-billion dollar revenue opportunity. Hundreds and billions of searches will be conducted for relevant mobile apps, mobile content and mobile products annually across the globe. At stake is the billions of dollars in advertising, app sales, and internal app transactions. Mimvi is the only publicly traded pure-play technology company whose proprietary algorithms provide search and recommendation for apps across different devices and platforms.
Apps are the new websites
Please refer to important disclosures at the end of this report.
Mimvi has developed cognitive computing technology which is the basis for its personalized search and recommendation platform. This technology mimics the way humans process information. The proprietary technology is currently applied to automatically organize the world’s mobile apps for consumers and enterprises 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’s cognitive computing algorithms are designed to automate the search, discovery and recommendation process 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; data which will enable developers and advertisers to target their consumers with the right offering at the right time. The world’s social networks and search engines have commoditized information making it ripe for the application of Mimvi’s technology. The value in this information comes from it being intelligently organized. Mimvi is well positioned to take advantage of this nascent opportunity and is aggressively pursuing market share. 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. In addition, 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. In addition, Mimvi has created two proprietary and groundbreaking technology solutions. Its Jupiter technology, which is currently in beta testing, enables anyone with a smartphone to discover relevant mobile apps based on two primary environmental factors: what they see and where they are located. Its MimviLink™ tool enables companies or individuals with a mobile app to gain greater exposure for their mobile app by having it matched and displayed next to relevant web content. By signing up for this service, publishers can monetize their content each time a user clicks on the relevant mobile app advertisement. Armed with Jupiter and MimviLink™, the Company is able to develop partnerships for these 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 in Mimvi’s proprietary search and recommendation technology. It represents a new kind of advertising service, 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 web
Benefits 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.
Investment Summary/Conclusion We are initiating coverage on Mimvi with a Buy rating for speculative investors. Mimvi is the only publicly 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 featuring Google-like search words and sponsored results in addition to private label app/content search for wireless carriers who need to fight off Google and Apple taking revenue from their subscribers. Beyond the proven revenue model of sponsored search results or paid search, Mimvi is positioned to take advantage 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 and the mobile application is becoming the new website. This megashift in how people interact and use the Internet makes mobile web apps central to the Mobile Internet. As such, having an agnostic mobile app search/recommendation engine is critical to navigating the new ecosystem. Mimvi is the first to market and has heavy patent pending algorithms and technology to build and retain its mobile app search leadership 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.
Given the high degree of difficulty in predicting future sales volume and timing, we constructed a sensitivity analysis that shows revenues and EPS under certain website traffic, price per click (PPC), and click through rate assumptions. If for example, Mimvi were able to obtain 0.10% of Google’s query statistics, and held a 10% click through rate, PPC advertising revenue would be as follows:
Because of the variability involved in this analysis and the lack of history, we are not publishing specific top line, EPS, or 12 month price target guidance, but instead provide a more detailed sensitivity analysis on 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 would have fared if they had invested in Google at Mimvi’s current $10 million market cap. If an investor had purchased $1,000 worth of Google shares (theoretically speaking, because Google was not a public company at this market cap and past performance is no guarantee of future results) at this ground floor level, that investment today would be worth approximately $19 million. We believe that an investment in shares of Mimvi represents a compelling investment for speculative investors looking for exposure to the brand new app search market.
Price per click 3.0 million 88 million 1.1 billionDaily Monthly Annually
II. PRODUCTS AND SERVICES Overview Mimvi’s personalization technology platform applies to all content. However, the Company is focusing its technology in the area of search, recommendation and discovery results for mobile apps. The search technology 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’s technology to automatically organize and recommend mobile apps for all mobile platforms in a platform agnostic way. Mimvi’s technology unites mobile apps from leading competitors on a search and recommendation website for the consumer and advertiser. Products and Services Mimvi’s products are derived from its personalization technology platform. Specialized Web and Mobile Content Aggregation Systems Mimvi’s specialized content aggregation systems target, aggregates and monitors iPhone apps, Android apps and other mobile app sites and marketplaces such as those provided by Apple, Google and other mobile 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 Applications Similar to a major search or recommendation engine, Mimvi intends to be the leading personalized search, discovery and recommendation destination consumer site for Mobile Applications. Mobile apps are being produced at an unprecedented rate and they need to be organized and personalized with simplicity and power. But they need more than yesterday’s search technology. Mimvi’s personalized search, discovery and recommendation algorithm for mobile applications utilizes cognitive computing algorithms combining information from the mobile web, major search engines and social networks. This algorithm powers its leading search and recommendation engine along with social components for mobile applications available to consumers worldwide. Two Cutting Edge Mobile Tools Mimvi, Inc. Introduces Proprietary Mobile App Discovery Technology On Sept. 22, 2011, the Company unveiled a new mobile app discovery service, which, combined with its proprietary search, recommendation and discovery technology, will revolutionize the way consumers discover 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 Augmented Reality). Powered by Mimvi’s proprietary mobile app and discovery recommendations, Jupiter represents the first of several upcoming technology announcements the Company is planning to deliver.
Please refer to important disclosures at the end of this report.
Jupiter technology, which is currently in beta testing, enables anyone with a smartphone to discover relevant mobile apps based on two primary environmental factors: what they see and where they are located. By simply pointing a smartphone’s camera to any physical object, Mimvi’s proprietary algorithms will process what it sees, and in conjunction with the user’s location, smart phone and tablet users 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 the search industry. Not only will it change the way we discover and shop for products and services, it will provide owners of mobile devices a tool which could enhance their lives on many other levels. The economic (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 on a street corner anywhere in the world can point his or her phone at a particular location, for instance at a shopping 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 a bridge between mobile apps and web content. MimviLink™ enables companies or individuals with a mobile app to gain greater exposure for their mobile app by having it matched and displayed next to relevant web content. By signing up for this service, publishers can monetize their content each time a user clicks on the relevant mobile app advertisement. Thus, the content publisher generates revenue (along with Mimvi) and the mobile app owner also gains greater exposure and consumer participation. App developers and owners can bid for relevant placement within the MimviLink™ network. The most relevant bidders can have 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.
III. CORPORATE STRATEGY Strategic Vision Mimvi reflects a passion for the human desire to search and discover, and the belief that soon everything on the Web will need to be consumed based on simple, powerful personalized search and automated discovery experience. Mimvi’s vision is to become the gateway or entry point to the Mobile Internet, much like Google—the most visited site on the planet. Business Model The 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 Strategy
Consumer spending habits have been redefined by recent changes in the world’s economy. In the era of this new mobile Internet economy, personalized search and automated discoveries are more important than 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 might best suit their desires. This phenomenon has created a large opportunity based on Mimvi’s extensive experience with the mobile space, consumer web and enterprise. Companies must move beyond basic unique visitor counts and instead into query counts, visitor retention and multi-path transaction conversion.
Please refer to important disclosures at the end of this report.
Personalization, recommendation and discoveries have become one of the primary driving factors behind sales. Besides buying things to fulfill direct necessities or desires, customers like to browse to find complementary purchases. Consequently, the higher the degree to which mobile app or content is personalized, the higher the sales volume will be. More importantly, this is not a linear relationship. As the accuracy of discoveries and personalization improve, there is a potential for an exponential growth in sales. Good personalization technology increases sales, which produces even further personalization and additional sales. A small improvement in the ability to personalize or recommend content leads to a large boost in revenue. Traffic acquisition The Company, as a search engine, is focused on acquiring high quality traffic. High quality traffic can be defined by the number of searches users conduct on the platform. High quality traffic can also be defined by revenue potential. Mimvi’s team has a successful track record of execution on this front. Traffic acquisition can be done using the following techniques:
Organic traffic and customer growth come from reducing clicks, steps and work both for the consumer and customer while maintaining extremely powerful technology behind the scenes. In addition, Mimvi maintains its own automated lead generation system based on its advanced crawling platform. This, in turn, 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 of recommended products, merchandise and advertisements from large companies to individuals. Mimvi’s personalization technology and algorithms are used to create contextual and relevant matches between the content it organizes and the products, merchandise and services from advertisers large and small. These approaches are applied to sponsored search results, in-app transactions and matching mobile apps to mobile content and web content. International Ventures Along with the U.S. and U.K., countries such as China represent a significant opportunity for Mimvi’s search 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 and greater China. Other international efforts include countries such as Japan, France, India, Russia and many more. Intellectual Property The Company is currently in the process of patenting all methods and applications developed. The Company 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.
Revenue Models Mimvi’s strategy relates to creating high-value around keywords and content that can be exchanged via its transaction platform. The Company aims to achieve this with high user retention by offering a series of entertainment search, automated discovery and personalization experiences that are more simple and powerful than any other service. Mimvi’s products and services are tightly integrated with revenue approaches that stick to the theme of purchasing search results or keywords surrounding automated content 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 Results Mimvi 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 traditional search vehicles (Google, Yahoo, Bing) yield returns of $0.015-$80.00 per click. However, most fall into the lower end range of $0.15-$0.25 per click. The key to this revenue stream is traffic. Acquiring traffic has a direct correlation to the advertisers Mimvi brings in, and the margins it can charge. One million queries per day will yield $150,000-$250,000 per day, assuming traditional metrics. Mimvi will add an automated email device that allows advertisers to see where they ranked on a given search page, and gives them an opportunity to pay a small premium ($0.03) to be at the top of the results page, encouraging advertisers to spend more, which is a recurring theme of Mimvi’s overall strategy. Enterprise Professional Services Mimvi develops customized solutions (apps, algorithms) for other companies. Mimvi currently has an enterprise contract with Sony for the application of the Seeqpod algorithms into their systems. Revenue Sharing In exchange for preferential treatment, such as being promoted or bumped up on search results, apps will agree to share part of their revenue with Mimvi. Mimvi will also be compensated to power other app related search engines with its API technology. Revenue sharing is one of the Company’s other principal business lines. Due to the absence of app specific search engines, there are no standard metrics in-place for this model. White Labeling of Services Mimvi allows other companies to market its services, and then is contracted to build and fulfill the contract. The Company already has a prototype of this revenue stream in the market. The primary benefit of following a white labeling strategy is that it takes no time or resources to execute until there is a contract.
Please refer to important disclosures at the end of this report.
App Development Mimvi will develop apps for consumers and business, converting traditional websites into mobile ready/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%.
API Search 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 app search niche, there are no in-place metrics from which to base rates. Mimvi’s engineers can dedicate time and energies to developing a matrix and implement it as needed. Strategic Advantage Mimvi’s primary competitive advantage is its proprietary set of search and discovery algorithms. These algorithms combined with an experienced management team and a proven strategy for executing commercial-grade platforms that excite consumers, enterprises and academic institutions separate Mimvi from 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 search engines such as Quixey do not provide Google like search experience with Amazon-like recommendations, they don’t have algorithms nearly as powerful, they can’t index as much, they generate less 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 National Laboratory, SeeqPod, Inc., TiVo, MIT and UC Berkeley. Mimvi’s management team’s history includes strategy and execution that have resulted in platinum enterprise and consumer web offerings, which include being winners of the 2008 R&D100 Award, also known as the “Oscars of Invention”, given by Steven Chu, U.S, Energy Secretary and Lawrence Berkeley National Laboratory for biomimetic search engine technology. Kasian Franks, former founder, CEO and CVO of SeeqPod, Inc., (sold to a Fortune 100 company for an undisclosed amount) which generated 250 million searches per month and 50 million unique visitors per month, founded Mimvi, Inc. in 2010. The technology team and advisors continue to evolve breakthroughs for the consumer, as was done among genomic scientists at the U.S. Department of Energy's Lawrence Berkeley National Laboratory.
Please refer to important disclosures at the end of this report.
IV. INDUSTRY Mobile Evolution 2011 has been an interesting year for mobile. Verizon Wireless finally got the iPhone. Hewlett-Packard unveiled the first fruits of its Palm purchase last year. Nokia, the world's biggest maker of handsets, abandoned its once-dominant Symbian mobile software system and demoted itself to a kind of glorified contract manufacturer of Microsoft-powered devices1. The struggle for mobile dominance has entered a new phase. The game has changed from a battle of devices to a war of ecosystems. It's the same game that created the most valuable franchises in tech history, from IBM to Microsoft to Facebook. All players successfully established themselves as "platforms," in which countless entrepreneurs and programmers developed products and applications that gave 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 stack of hardware, software and services. In PCs, Microsoft erased Apple's early lead by signing up hardware makers to create cheap machines, and software companies to develop Windows versions of everything from word processors to Tetris. Facebook vanquished social networks such as MySpace by repositioning itself as a platform - a decision that led to the creation of game maker Zynga and other app companies that keep Facebook's 500 million users hanging around. What's 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 $120 billion this year. That doesn't 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 internal predictions, 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 mobile searches for Chrysler, for instance, jumped 102 times during the game, compared with only 48 times for desktop searches. And the number of mobile searches for GoDaddy jumped 315 times, compared with 38 times on desktops. Shortly following the exit of Google’s former CEO Larry Page, Eric Schmidt is already shifting Google’s focus with an influx of software developers ready to create Google apps for smart phones, tablets and other mobile devices. In addition to the new hires, Google’s existing employees have changed jobs to work on the apps development effort. This is because Google is trying to capture the billions of dollars to be made from paid downloads and related advertising. As a result, Android users will see many more apps 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 broader wave of app development and management. Even at $2.43/app, the app market will emerge as a $38 billion market by 2015 as more tablets and smart phones are sold and the number of paid for apps per device 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 and smart 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, 2011 2 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.
There is also an estimated $17 billion services opportunity for firms that can build mobile apps for employees and customers. Corporations will need third-party services firms to manage the devices and apps as well as to set up and to administer their own private label enterprise app stores. And finally, the CIO and business executives will hire consultants to help their reengineer their business processes to take full 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. The shift to the mobile App Internet is a game changer that will dramatically impact how traditional software is sold and delivered. Every part of the IT delivery system will be affected by these tiny tools, also known as apps. The following three notations are from recently published articles on the size of the mobile app market and mobile ad spending. While the estimates don’t match due to different sources, different dates and different classifications (e.g. app store revenue vs. apps market), it is evident that the dollar opportunity is multi-billion in scope and growing at a rapid pace. Mobile App Downloads To Reach 98 Billion By 20154 According to research from Berg Insight, the number of mobile application downloads will reach 98 billion by 2015. The number will grow at a compound annual growth rate (CAGR) of 56.6% between 2010 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. This direct 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 20175 GIA announces the release of a comprehensive global report on Smartphone Apps market. World smartphone apps market is forecast to reach $101.2 billion by the year 2017. Given the positive outlook and encouraging flow of investments despite difficult economic conditions, smartphone apps market offers tremendous opportunities for vendors seeking to establish their presence in this domain.
4 Article on techcrunch.com published Octber 7, 2011 5 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.
Mobile Ad Spending In The U.S. Expected To Grow 65% In 2011 To $1.2 Billion6 Spending on mobile ads is expected to reach $1.23 billion this year, according to a revised estimate from eMarketer, which represents a 65 percent increase from 2010. The estimate is slightly up from the $1.1 billion number eMarketer put out a year ago. The estimates for future years out are also up. They are as follows: Mobile ad spending
These numbers include display, search, text ads, and even video ads (which are the fastest growing mobile 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, mobile display and mobile search will be about even thanks to the growth in app advertising. Each will represent almost $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.
The mobile Internet is taking over the fixed Internet According to Morgan Stanley uber-analyst Mary Meeker, there are two overwhelming trends that will affect consumers: the hardware/infrastructure industry and the commercial potential of the web: mobile and social networking. According to Meeker, the world is currently in the midst of the fifth major technology cycle of the past half a century. The previous four were the mainframe era of the 1950s and 60s, the mini-computer era of the 1970s and the desktop Internet era of the 80s. The current cycle is the era of the mobile Internet, predicting that within the next five years more users will connect to the Internet over mobile devices than desktop PCs. The chart below shows the expected convergence and eventual take-over of mobile Internet users. The adoption of Apple devices, such as the iPhone/iPod touch is taking place more than 11 times faster than that of AOL, and several times as fast as that of Netscape back in the mid-90’s. The mobile boom will take its toll on carriers because mobile Internet use is all about data. The average cell-phone usage pattern is 70% voice, while the average iPhone is 45% voice. Mobile data traffic is expected to increase by almost 4,000% by 2014, for a cumulative annual growth rate of more than 100%. These estimates may worry carriers, but they are a welcome sign for equipment suppliers and mobile service companies. One of the implications of mobile access is a growth in e-commerce. Users are more willing to pay for content 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.
On the social networking side, social network use is bigger than email in terms of both aggregate numbers of users and time spent, and is still growing rapidly. Social networking passed email in terms of time spent in 2007, hitting about 100 billion minutes/month globally — it’s now twice that — and passed email in terms of raw user numbers in July of 2009, with more than 800 million. Given the rate at which Facebook has been growing, that number is probably now closer to a billion. Japan’s experience shows how crucial mobile is to that equation: Mixi, one of the country’s largest social networks, has seen its mobile page views grow to 72% of the total from just 17% three years ago.
Please refer to important disclosures at the end of this report.
Asian Market When 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 overall mobile phone penetration7. The region as a whole had the highest mobile phone penetration in the world and 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 more interesting than TV than those in the US. Individually, four of the 11 Asia-Pacific markets surveyed had a 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 found that smart phone adoption is a recent and widespread trend for the region. Over 80% of smart phone users in Indonesia, Australia and India are first-time users. The study found that when on their smart phones, Japanese, Korean and Singaporean consumers use their smart phones more intensely than their U.S. counterparts. They surf more, email more, search more and share more videos. When it comes to social networking, Singaporeans have every other market beat. The world’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, while consumers in Malaysia aren’t far behind. According to the study, developing markets in the region are also a potential gold mine for app developers, with more in the region determined to use more apps compared with developed countries across 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 in emerging markets by 2015, equating to 1.6 billion connections. This explosive surge in demand will create opportunities and challenges for mobile network operators8. Baidu in China focuses on mobile app platform9 China's top search engine Baidu, Inc. offered a glimpse of its upcoming mobile operating system and recently launched a new mobile application platform aimed at bolstering its presence in the increasingly competitive mobile web market. The platform, named Baidu Yi, will enable third-party application developers to create apps such as games, maps and other tools that they can distribute in a similar way to Apple Inc's App store. Baidu Yi is modeled on Google's Android mobile operating system and will be rolled 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 users to register a Baidu account, potentially reducing traffic on the site, Baidu management acknowledged the fact that this represents the future of the industry. Baidu currently has around 200 million registered users. 7 Smartphone Research on Mobile Internet and Market Trends, a joint study by Google and Ipsos. 8 Mobile market analyst Ovum 9 Reuters article “Baidu offers glimpse of new mobile OS” dated September 2, 2011
Please refer to important disclosures at the end of this report.
Competition Mimvi’s primary competitors include leading search engines, social networks and companies that have used entertainment content to capture the attention and loyalty of consumers. Some of the household names include Google, Apple, Baidu, Amazon and NetFlix. With respect to the niche players, the market for mobile app search engines is heating up and the venture capitalists are taking notice. Appsfire-a French start-up, recently raised in $3.6 million in VC money, while Chomp, another app recommendation service raised $2 million in venture capital in March. Quixey, another private app-based search engine competitor, recently secured $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-based search engines in the market today, making it the premier app-based search engine. Relative to its closest peers:
• 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.
Below is a 7-prong matrix comparing Mimvi with these smaller app-based search engine comps. Competitive Landscape
Comparisons Typically, in our research reports, we compare the featured company with publicly traded comps to get a sense 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 presents investors with increased uncertainly with respect to estimating value for shares of MIMV.
Please refer to important disclosures at the end of this report.
Sensitivity Analysis There are three significant variables that need to be considered when projecting revenues from PPC (pay per click) advertising:
• Website Traffic • Price per click • Click through rate
The following sensitivity analysis matrix shows revenue based on varying levels of traffic to the website, 4 different prices per click, and an average click through rate of 10%.
It is important to note that this represents one of the primary revenue generators for the Company, but is NOT the sole revenue source. The Company will also make revenues from revenue sharing, white labeling, 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 of 29.0%
Please refer to important disclosures at the end of this report.
Valuation Metrics Given the Company’s position as the only publicly traded company in this nascent space, it is extremely challenging to try to project revenues by year. As such, we have laid out a sensitivity analysis in the section on pages 23-24 that shows the Company’s PPC revenue based on range of assumptions. The following EPS projections assume a 10% net margin (Google’s net margins over the prior three years range from 20%-30%), and show how EPS varies depending upon the price per click and on the volume as a percentage of Google’s click through rate. Because we don’t have a timetable by which we expect the Company to hit these hurdles, we can only calculate these estimates and provide investors with a broad range of estimates based on different scenarios.
An an example, we provide the following valuation calculation assuming the 0.10% case scenario at the lowest price point using a 35% discount rate and a 25 times EPS multiple given in the year 2013.
YearEarnings Estimate
Price to Earnings Multiple
(X)Future Value
Discount Rate
12-Month Target Value
2013 $0.04 25 $0.98 35% $0.72Average: $0.72
We calculate, in this specific scenario, a 12 month target price of $0.72 per share for Mimvi. Any variation from this scenario will greatly impact the value of the Company’s shares. We invite investors to consider their own scenarios based on the facts in this report. Once again, we remind investors that this is only one of the Company’s expected sources of revenues.
Please refer to important disclosures at the end of this report.
VI. RISKS General Risk Factors Following are some general risk factors: (1) Industry fundamentals with respect to customer demand or product / service pricing could change and adversely impact expected revenues and earnings; (2) Issues relating to major competitors or market shares or new product expectations could change investor attitudes 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 the economy could alter investor confidence and investment prospects. International investments involve additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability. Risk Factors Specific to Industry The success of any Internet search engine business depends on providing products and services that make using the Internet a more useful and enjoyable experience for its users. Competitors are constantly developing innovations in web search, online advertising, and web-based products and services. As a result, companies in this space must continue to invest significant resources in research and development in order to enhance their web search technology and existing products and services, and introduce new products and services that people can easily and effectively use. If the company is unable to provide quality products and services, then its users may become dissatisfied and move to a competitor’s products and services. In addition, these new products and services may present new and difficult technology challenges, and we may be subject to claims if users of these offerings experience service disruptions or failures or other quality issues. As search technology continues to develop, competitors may be able to offer search results that are, or that are seen to be, substantially similar to or better than the company’s. Risk Factors Specific to Company Competition Risk The Company’s business is rapidly evolving and intensely competitive, and is subject to changing technology, shifting user needs, and frequent introductions of new products and services. The Company has many competitors in different industries, including general purpose search engines, vertical search engines and e-commerce sites, social networking sites, traditional media companies, and providers of online products and services. The Company’s current and potential competitors range from large and established companies to emerging start-ups. Established companies have longer operating histories and more established relationships with customers and users, and they can use their experience and resources against Mimvi in a variety of competitive ways, including by making acquisitions, investing aggressively in research and development, and competing aggressively for advertisers and websites. If Mimvi’s competitors 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 Risk As with any early stage company implementing an aggressive growth plan, Mimvi’ success or failure will depend 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.
Financial Risk The Company is dependent on continued financing from outside investors due to recurring operating losses. As a result, the Company’s ability to continue as a going concern could depend upon its ability to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due and to generate profitable operations in the future. There can be no assurance that any funding would be attainable or attainable on favorable terms, thus investors should be financially capable of losing all or a portion of their investment. Key Management Risk Management’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 the company. Micro-capital Investment Risk Micro-capital investing involves inherent risk and investors should carefully research any company considered for investment. Micro-capital companies are usually early in their market cycle and vulnerable 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 limited trading market for its common stock. As a result, the Company’s common stock is subject to the penny stock rules by the Securities and Exchange Commission that requires brokers to provide extensive disclosure to its customers prior to executing trades in penny stocks, and as such there may be a reduction in the trading activity of its common stock. As a result, investors may find it difficult to sell their shares of the Company’s common stock. Risk Categories WSR’s investment universe revolves around undiscovered emerging growth companies that possess higher risk profiles than established “blue chip” companies. Presently WSR maintains three risk categories including growth, aggressive growth and speculative with the later assigned to higher risk companies. Growth – Lower risk investment relative to small capital company investments with a defined revenue pattern, reasonable earnings predictability and sound balance sheet. Aggressive Growth – Average to higher risk investment relative to small capital company investments in a high growth stage or industry. May have limited history of generating revenue or be operating in a highly competitive or rapidly changing environment. Investors must have the financial capacity to lose a significant portion of his or her investment. Speculation - High risk investment with short or unprofitable operating history and limited revenue or earnings predictability. Companies are typically early stage and in the process of commercializing a new and often potentially disruptive technology into a large market. Investors must have the financial capacity to lose his or her entire investment.
Please refer to important disclosures at the end of this report.
VII. MANAGEMENT AND DIRECTORS Officers, Directors and Key Management Name Age Position Kasian Franks 40 Chief Executive Officer and Founder Michael Poutre 40 President and COO Caleb Pate 40 Content and Media Alain Mahmoud 38 VP of Brand Matt Hamilton 40 VP of Operations Kasian Franks, CEO and Founder Mr. Kasian Franks is the Technical Founder of Mimvi, Inc and has been its Chairman of the Board and Chief 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. He previously served as Chief Executive Officer of SeeqPod, Inc., a successful search engine. He has also served as a Software Engineer and Product Developer, specializing in pattern matching algorithms and tools for companies and organizations such as Sun Microsystems, Oracle, Motorola, Tivo, mPower, and X-Mine. Mr. Franks worked at the U.S. Department of Energy's Lawrence Berkeley National Laboratory (LBNL), Life Sciences Division, as a Genomic Research Scientist from 2002 to 2005. in 2008 he 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. Michael Poutre, President and COO Mike joined the Company in August of 2011. Since then, he has been leveraging his considerable experience in operations, particularly in relation to public companies. Mike is a 20 year veteran of the securities industry. His experience ranges from working at some of the largest wire house firms in the world, 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 President and Chief Compliance Officer, The Blue and White Fund had considerable success, soundly beating all its 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 been cited or featured in numerous premier financial publications, including Forbes, Business Week, The New York Times and The Los Angeles Times. Mike is currently an MBA candidate at California Lutheran University and sits on the advisory board of the Center for Economic Research & Forecasting at the university. Caleb Pate, Content and Media Strategist Mr. Pate is the media, content and music Industry Strategist for Mimvi. Mr. Pate is also founder of Pacific 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 the band Seventeen Evergreen with forthcoming UK/European releases of full-length albums licensed for the UK and Japanese markets. Their songs have been featured in recent Summit Entertainment film 'Bandslam' 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.
appeared on BBC Radio One, BBC Six Music and XFM. Mr. Pate has released an album in the CMJ Top 100 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 leadership record, managing search engine media content curation efforts and editorial content development. Alain Mahmoud, VP of Brand Mr. Mahmoud is an award-winning brand and marketing strategist. He brings a comprehensive business toolkit to Mimvi, from planning through delivery. His experience spans over 60 brands across more than 30 industries and 100+ countries worldwide. Mr. Mahmoud has worked on both the client and agency side for B.A.T., Y&R, Richemont (FMCG) and Bedrock (Brand Consultants) across a multitude of functions, including: brand and communications strategy (internal and external), brand management, strategic (business) planning, advertising (planning and account management), verbal branding, project management, interactive branding, trade marketing development (CRM) and sales. Mr. Mahmoud’s brand experience is equally diverse, encompassing global, regional and local propositions: corporate, divisional, product and service. Mr. Mahmoud holds a Bachelor of Science in Business and Management Studies (Four Year Honors) from Bradford University's School of Management. Matt Hamilton, VP of Operations Matthew Hamilton is an internet entrepreneur with a background in Mechanical Engineering. For the past six years he has managed teams of scientists and engineers at some of the largest companies in the semiconductor 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 Alfa Romeo's 1954 - 1965 Giulietta line. In his spare time he restores and drives his cars in rallies. Matthew is also a musician and aspiring novelist.
Please refer to important disclosures at the end of this report.
ADVISORS Joe Abrams Mr. Abrams specializes in working with small technology companies to build shareholder value in the public markets. As a direct result of his efforts, he has completed merger and acquisition transactions in excess 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 2005 for $580 million. In 1983, Mr. Abrams co-founded The Software Toolworks, Inc., a publicly held developer, publisher, and distributor of educational and entertainment software, which was sold to Pearson, Plc. in 1994 for $462 million. Daiwa Quantum Capital Daiwa Quantum Capital, led by the former CEO of Sony Nobuyuki Idei, seeks growth capital opportunities in Asia with a particular emphasis on applying Japanese resources to its investments. The General Partner was founded by Daiwa Securities SMBC Principal Investments, a unit of Daiwa Securities SMBC and Quantum Leaps Corporation. See: http://www.dqcap.com. By way of background, Sumitomo Mitsui Banking Corporation (“SMBC”) is a leading Japanese financial services firm with more than JPY 100 trillion (approx. $1 trillion) in assets. Quantum Leaps, founded by Nobuyuki Idei (ex-Group CEO of Sony Corp), is a business incubation and strategy consulting firm. It is also a leading venue for exchanging ideas among CEOs of Asian and Western companies. The investment team 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 real estate in Japan and worldwide. Mina Bissell Mina Bissell has been recognized for her lifetime contributions to the fields of breast cancer research, the enhanced role of extracellular matrix (ECM) and the nucleus environment to gene expression in normal and malignant tissues. These works have ushered and changed some central paradigms that have strengthened the importance of context in the development of cancer. She has received numerous recognitions. -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.html Dr. Gordon Chiu Dr. Chiu is an execution driven businessman with more than 15 years of combined domestic and international experience in biomedical, chemical, cosmetic, medical and technology industries. He has
Please refer to important disclosures at the end of this report.
been invited to serve on the board of public and private companies and to provide vital advice to the board 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 and antimicrobial research. He started his career as a research scientist at Pfizer Inc and Merck & Co. Inc. His healthcare 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 Polytechnic Institute with a summa cum laude. He graduated with an M.S. degree in Chemistry from Seton Hall University with high honors. Additionally, Dr. Chiu was accepted as an MD/PhD candidate under the National Institutes of Health's Medical Scientist Training Program for four years at the Mount Sinai School of Medicine where he also researched, developed, consulted and advised the Department of Dermatology's Dr. Huachen Wei in skin cancer research. Seeing the opportunity to impact foreign policies in healthcare, he transferred his credentials to University of Bridgeport School of Naturopathic Medicine where he received his doctorate in naturopathic medicine. With this unique background, he has investigated the validity of foreign treatments and their success level for public health. He has also been chosen to serve an advisory role in the identification of low cost solutions (i.e. non-invasive diagnostic equipment) for emerging countries that cannot afford to maintain armies of physicians across numerous sub-specialties. Dr. Chiu developed and owns methodologies called directed combinatorial algorithmic libraries (D.C.A.L.) that are used in various commercial applications, composition development and research. Andre de Souza André de Souza is a Corporate and Business Development professional who has led many successes at startup, growth and enterprise levels. Mr. de Souza has a diverse background in strategic alliance building, innovative solution development, and has excelled at delivering POC/ Design/ OEM/ Channel wins, with a special focus on innovative early stage companies. Mr. de Souza co-founded Corundum Consultancy, an Irish-based firm providing advisory and business acceleration services to high potential startup companies and spin-outs from leading universities. In this role he served as a catalyst to attain rapid corporate development and introduction to strategically chosen Silicon Valley based funding and technology partners, and he helped launch a company aimed at delivering personalized, destination-specific content to mobile phones. Formerly Director of Global Strategic Alliances for BEA Systems, he managed corporate development with top-tier strategic partners as well as joint R&D, engineering, sales development and marketing efforts influencing over $600 million in partner revenue per annum. Prior experience includes executive management at Tarantella (Sun Microsystems) and Cambridge Technology Partners, where he led the company’s first Venture investment in a partner company. Mr. de Souza led business development activities 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, where he served as COO and grew the company from a two-man entity to over 40 engineers and $5 million in four years. Mr. de Souza holds a Master of Science in Biomedical Engineering and a Bachelor of Science in Mechanical Engineering. A certified Professional Engineer, he has also held an NASD Series 7 Securities License.
Please refer to important disclosures at the end of this report.
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