Table of Contents

I. Market Problems -- Slide 3

II. Market Solutions – Slide 4 – 7

III. Revenue Model – Slide 8 – 10

IV. Marketing Strategy/Growth – Slide 11– 12

V. Traction – Slide 13

VI. Competitors – Slide 14 – 15

VII. Team – Slide 16 – 17

VIII. Financials – Slide 18 – 20

IX. Investment Ask – Slide 21

SMRC Inc/Conscience LLC

Generating philanthropy and protecting individuals by architecting

the digital conscience.

Market Problem(s)• Social identity theft (source: Barracuda Networks).

Phishing – effects 54% of people.

Account Sent Spam – 17% of people.

Hijacked Account – 13% of people.

• Social authentication. 36-50% of web activity is fake (source: IAB).

71% of Lady Gaga’s followers are fake (source: USAToday).

70% of Obama’s followers are fake (source: USAToday).

This creates muddied market data.

• Abysmally low ad conversions.

0.1% average conversion rate (source: DoubleClick).

More likely to complete SEAL training (source: Solve Media).

The Solution?• The Persona

• A trusted, self learning, personal A.I. app; consisting of your social media likes, dislikes, relationships, events, environments, and favorite causes.

A digital personification of you.

Your companion, guardian, guide & conscience.

• Protects your identity.

• Finds you new, personalized content.

• Monetizes your content for yourself and your causes.

The Solution/Persona cont.

• Feature: Protects your identity.• Biometric authentication.

Electronic Signature Lock (typing & gait patterning).

Eliminates passwords.

• Understands your interaction patterns.Notifies you if pattern changes; signaling fraud.

• We can’t even access people’s contact info.

Feature solves: Social theft, user authentication, recurring app use, fake/"muddied" data, and trust in advertising.

The Solution/Persona cont.

• Feature: Finds you new, personalized content

• Autonomously “searches” your interests across all media, not just one.

• Understands relationships. Best friends = common interests/content.

• Social doppelgangers (similar profiles) Similar profiles = similar content.

Feature solves: 100% personalized content and ads, recurring app use, content monetization.

The Solution/Persona cont.

• Feature: Monetizes content for yourself and causes. 92% of revenues go to people & their causes, equally.

Gives value to people’s voice (content) at a minimum of $.60/day.

• $.60/day x 206 million active North American Facebookusers = $123 MILLION/DAY to causes from Facebook alone.

$5-10/hour supplementary income for paying attention to ads & responding to research.

Creates real value in the service; rather than just a free service. See Jaron Lanier.

Feature solves: Recurring app use, lack of funding for causes, low conversions. http://bit.ly/smrcp-mflyer

Revenue Model

• Selling 100% qualified ads leads for $0.06-0.10

• Advertising to leads through:

Persona app.

Ad publishers (think AdSense).

• Incentivizing 10 minutes of attention to ads. Gamified:

• Where’s Waldo/Trivial Pursuit-like.

• Quizzes on trivial detail in ads.

• Minimum 29% increase in engagement (source: Gigya).

Correct response = donations + $$convertible$$ benefits.

Pays out $1-2/game; $5-10/hour.

Revenue Model Cont.

• Build MASSIVE brand loyalty through 100% personalized Cause Marketing (source: Cone Inc.).

All our promotions are co-branded with audience’s cause.

80% switch brands.

61% try a new product.

Would you go to an inferior restaurant because it supported your kid’s activities?

• Post-Purchase Testimonials and Research Facilitated through cause related incentives.

• 92% of revenue goes to people & causes.

8% to SMRC.

Revenue Model cont.• Summary & Advantages.

100% personalized ads/digital lead generation.

• 1/250th the cost of traditional B2C lead gen (source: Hubspot).

Incentivized conversions to ads, research & purchases.

Behavioral research embedded in every ad.

100% personalized Cause Marketing.

Vehicle & incentives for gathering post-purchase research.

Problems solved: High expense/low conversion, lack of brand loyalty & research in promotions. http://bit.ly/smrcp-sflyer

• Startup Strategy: 2 call centers to register 500-750 sponsors/hosts in 3

months.

• Hosts – anyone with a network. Hosts invite followers.

• Incentive: Host receives 4% of follower’s monetization.

• Can invite other hosts to receive 4% of their value.

• Creates direct network monetization w/o ads.

Hosting/Publishing Ads (optional).• Pays per impression.• 100% personalized ads; no spam.• Pays 10x the ad publishing revenues.

Marketing Strategy/Growth

Marketing Strategy/Growth Cont.

• Host’s receive data on invited followers; no cost. Allows hosts to personalize content experiences.

• Hosts authenticate invited followers as being real Biometrically validated.

Data on followers 100% accurate; no “muddied” data.

Summary & Solutions: Rapid, inexpensive, inorganic growth strategy.

• One account can bring in millions of members/dozens of sponsors/dozens of hosts.

All the benefits of MLM, without any of the problems (i.e. asking for money).

Growth strategy subsequently solves social authentication problem. http://bit.ly/smrcp-hflyer

Pre-Launch Traction• 10 million members (followers) in the pipeline

from global hosts/sponsors in:

Health

Entertainment

Policy

Research

Youth organizations

• Each host has multiple celebrity connections with 1 million+ followers, who they can invite.

• Note: Hosts don’t invite followers until service is fully developed. That’s why we say pipeline.

Competitors• Social Identity Theft:

FriendGuard.

Basically untapped market.

Advantages: • Keystroke biometrics.

• FriendGuard has little market visibility.

• Social Authentication

Social Login Authenticators (i.e. sign into Twitter w/ Facebook).

Advantages: Bots can’t fake keystroke biometrics. They can fake social authenticators.

Competitors Cont.

• Advertising:

Anyone who sells advertising/offers ad publishing APIs.

Advantages: • See revenue model.

• Ad-attention research can be integrated into any ad.This makes our competitors complimentary, rather than competitive.

• Startup of 10 million profiles, with 2+ years of profiling.

Team• Chief Business Officer: Phillip Nakata

IBM CTO of Sales Transformation.

IBM Sr. Assessments Officer.

• Internet Migration Lead (SNA to IP; Proprietary to Open Source)

• Managed $5 billion in assets.

CSC Principal

• Chief Marketing Officer: J.P. D’Zahr

Entrepreneur.

Expert in Authority Websites/Content Management.

Pulled in 6 figure revenues/month from content monetization.

Built networks with over 25 million subscribers/100 business partners in under 30 days.

Previous clients include Microsoft, Boeing, and Combio.

• Chief Technology Officer: Aaron Nakata

At age 13, convinced Phil (father) to introduce Open Source to IBM through RedHat. Open Source is responsible for a significant portion of IBM’s service revenue today.

Developer of #1 World of Warcraft “hack” in the world. Blizzard had to redesign the game around it.

Managed legacy systems/tape servers for StorageTek; a Sun Microsystems spinoff.

• Director: Scott Bruce

Math teacher of 22 years.

CEO of Sesma System where he secured 2 internet software patents.

Fended off 13 office actions from IBM, Adobe and Sun Microsystems.

Co-founder of ABC4ALL; an international non-profit.

Team Cont.

Financial Assumptions• 10 million members to start; growing to 18

million by end of year 1; invited by hosts.

• 1/30 sponsors targeting a member for $.06 cents. Half goes to publisher as cash (not donations).

• We charge $.06-.10/target. 40% of potential revenues unaccounted for in targeting.

• Ad research game calculated at same rate. 1/30 play game, and get rewarded only $.06 of $1-2 avg.

• Post purchase research calculated at same rate. 1/30 purchase a product, and receive $.06. Unless average

product is $1.20; this is conservative.

STOP AND ABSORB WHAT YOU JUST

READ

Seriously; go back and read the assumptions.

Financials• Cash Flow:

$10 billion total.

$7 billion to causes.

$2.6 billion in ad publisher payouts.

$430 million in profits. (8% of total)

$10 million in operating expenses. (5% of 8%)

This all happens in the first 9 months.

Don’t believe us? Please note Growth Strategy and see http://bit.ly/smrc3yrxls.

Really don’t believe us? Apparently you didn’t stop and absorb what you just read☺.

Investment Ask• Seeking a total of $10 million

To insure a $3 million budget.

Additional $7 million insures deliverables against worst case scenario.

Minimum buy in of $75,000/1% founder’s share.

• In return (for full $10 million): 40% of total shares (common and preferred).

8.6:1 return year 1, 66:1 year 2, 500:1 year 3; paid out as profit sharing (50% of profits go to profit sharing).

Board role required.

35% dividend.

3x contribution to your causes + deductibles for 5 years

Option to become host or sponsor to monetize your networks.