Fund your business. Palo Alto Las Vegas

Transcription

1 Fund your business Palo Alto Las Vegas

2 This document contains material non-public information. This presentation is not, nor is it to be construed under any circumstances as, an offering memorandum as defined under any applicable securities legislation. This presentation does not purport to be all-inclusive or to contain all the information that the recipient would need in connection with its evaluation of an investment in Kxter, Inc.. Kxter, Inc. and its agents and representatives make no representation or warranty, expressed or implied, as to the accuracy or completeness of any of the information contained herein. By accepting delivery of this confidential information or any other material in connection with an investment in Kxter, Inc., the investor agrees: (1) to keep strictly confidential the contents of this confidential information presentation and such other material and not to disclose such contents to any third party or otherwise use the contents for any purpose other than evaluation by such offeree of an investment in the securities; (2) not to copy all or any portion of this confidential document, other confidential information or any such other material; and (3) to return this confidential presentation and all such other material to Kxter, Inc. upon request of Kxter, Inc. An investment in Kxter, Inc. is highly speculative in nature. There is no market through which the securities of Kxter, Inc. may be sold, none may develop in the future, and investors may not be able to sell their securities. An investment in Kxter, Inc. is only appropriate for investors who are able to absorb the loss of some or all of their investment. Investors should consult their own advisors to assess the income tax, legal, financial and other aspects of an investment in Kxter, Inc. This presentation may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable European securities legislation. Forward-looking statements include, but are not limited to, statements with respect to financial performance, advertising and user opportunities, equity offerings, opportunities for growth and financial position. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forwardlooking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Kxter, Inc. to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the risks related to the market for Kxter, Inc. s securities, the general risks associated with the internet and financial industry, liquidity, financing, competition, general uninsured losses, interest rate and currency fluctuations, Kxter, Inc.'s short operating history, history of losses, reliance on third parties to measure market size and growth forecasts, diversification, potential conflicts of interest, the availability of sufficient cash flow, trademark disputes, the failure to obtain additional financing, dilution, reliance on key personnel, and changes in legislation. Although Kxter, Inc. has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Kxter, Inc. does not undertake to update any forwardlooking statements that are incorporated by reference herein.

3 Investment Opportunity Offering: Use of Proceeds: Pre-Capital Structure: Pro-Forma Structure Private placement of common shares up to $2 million dollars. The proceeds will be spent on further developing the branded website, database development, licenses and working capital. 11,700,000 Common Shares O/S Issuance of 4,000,000 Common Shares at a price of $0.50 (USD) per share $2,000,000 (USD) or 22.6% of the company. Exit Plan: IPO on the US markets or via NASDAQ Capital Markets within 36 months. Cash Flow Needs: $1 million (first year)

4 Problem: Raising equity capital for companies is not possible through current crowdfunding sites. Finding credible ideas to invest in, is also impossible without an inside track to the deal.

5 Solution: helps companies raise capital through placement of corporate equity securities using an SEC compliant online platform.

6 What s Unique? We are an Online Investment Bank Not just a website Current Crowdfunding Sites Tedious Manual listings and approval process. No actual equity transactions in the USA just preselling products. Most not SEC registered or sanctioned, do not meet SEC rules. Industry Specific Limitations due to workload. Limited Reach, stand alone website, no mobile. No avenue for investors to invest in equity of private corporations. Kxter Automated Equity Investment Web Platform. Registered Broker-Dealer CRD# Registered Transfer Agent under Section 17A SEA Partnered w/ Bank of America (Gateway e4) and US Bank (Escrow). Meet Patriot Act, OECD - KYC / AML FinCEN compliant. Meet SEC 4(a)(2) - Private Placement Exemption Rules. Meet PPM and Investor Risk Disclosure Rules. On track for NASDAQ Capital Markets Listing (Symbol KXTR ). Tied in with Facebook, LinkedIn Marketing. Canada and EU representation (Global Roll-out Potential)

7 Entrepreneur Creates Account How it Works Enters Business Plan into Template Provides Share / Capital Raise Information Listed on kxter Revenue Web Investors Fund Business Equity in Business Commission Charged REVENUE Proceeds to Entrepreneur

8 INVEST OR INVEST OR Retail Distribution INVEST OR TRUE RETAIL DISTRIBUTION We use the power of social media Likes and Shares to create our own retail investor network for each raise.

9 Strategic Relationships Escrow Services Member of: Member of: Audited by:

10 Competition KXTER DCN (Merriman) MICROVENTURES KICKSTARTER SEC Registered Issues Securities Sign Up Fee $99 $5,000 No No Sign Up Process Automated Paper Telephone Digital Admin Anti-Fraud Automated Paper Paper Amazon Only Due Diligence Digital Admin Paper Paper None Closing Process Automated Paper Paper Automated Commissions 7% 8% 12% 16% EFT/PayPal/Amazon EFT/PayPal No, users must open account with Merriman Transaction Costs Maintain LT Investor Relations (fee based) First $1.5 MM Free (PayPal blueprint VC Program) No, users must open a brokerage account 16+% 2.9% + $0.30 per transaction Amazon Only 2.9% + $0.30 per transaction Diversified LT Revenues

11 Pro-Forma Forecast ($ in millions) REVENUE Net Sales $10,980 $43,352 $99,160 $241,184 Total Cost of Goods Sold $1,061 $3,470 $7,316 $16,216 Gross Profit (Loss) $9,919 $39,882 $91,844 $224,968 Total Operating Expenses $4,046 $10,466 $28,561 $42,301 Taxes on income 2,056 10,296 22,149 63,933 NET INCOME (LOSS) $3,817 $19,121 $41,134 $118,734 End of Year Employee Count 9 Employees 25 Employees 91 Employees 100 Employees Enterprise Value (000's) $93,968 $470,664 $1,012,522 $2,922,672 Read: Potential $3bn Company in 3 years

12 Potential Global Reach We intend to cover 70% of the Global Financial Market KXTER INC. United States Debt and Equity Market Size: $131 Trillion Dollars 100% 100% KXTER CANADA INC. KXTER UK LTD. Canada European Union Source: McKinsey & Company Report, Mapping Global Capital Markets, pg. 24, Exhibit 12

13 First Year Cash Requirements Platform Technology 85,000 Working Capital (incl. Salaries) 1,064,000 Broker Dealer Licensing/Compliance 75,000 Legal Fees (incl. capital raise) 100,000 G&A 456,000 TOTAL $ 1,780,000 50% anticipated to be funded from revenues. *Assumes 9 employees by end of 2015.

14 Milestones Completed Completed seed-round financing. Granted SEC Broker-Dealer Registration (CRD#173192) Granted conditional Nevada Securities License (pending FINRA) Approved Gateway e4 Merchant with Bank of America Approved/Passed Due Diligence for Escrow Services with US Bank Entered merchant partnership with PayPal and Braintree Submitted application for NASDAQ Capital Markets. Completed branding and marketing design. Secured 14 additional domain variations and extensions. Secured NASDAQ ticker symbol: KXTR Version 1.0 ready for soft-launch January 2015

15 Founders THOMAS SCHNEIDER Launched and exited three (3) successful companies. Took Schneider Power Public on TSX Venture Exchange (TSXV:SNE) sold to Quantum Technologies (NASDAQ:QTWW) B.Com Finance & International Business from McGill University, degrees in Mathematics, Physics and Chemistry. RICHARD ANTBLAD Former Program Director for Bacardi 12 years as Interactive Marketing and Brand Identity Manager for Procter & Gamble Worldwide. Master of Science Degree in Industrial Engineering and Business Management from the Royal Institute of Technology, Stockholm Former Platoon Leader in the Military Service Engineering Corps. JAMES BRETT Founded and divested four (4) successful companies. Recently sold Mediaco to Frischkorn AV, after having built this multi-million dollar enterprise from scratch. Successful venture capital investments in various diverse industries including Financial Services, Entertainment and Special Events.

16 Founder 14 Year Track Record SOLD COMPANY TYPE OF EXIT 2001 Syoni Communications Private sale to MediaMap (Lehman Brothers) 2002 Veer Music Inc. Private sale to Warner Music (AOL Time Warner) 2003 Line Entertainment Holdings Inc. Private sale to Alliance Atlantis (Goldman Sachs) 2003 Fair Disclosure Financial Network Private sale to CCBN/Thomson Reuters (NYSE:TRI) 2004 Online Broadcasting Corporation Private sale to TELUS Corporation (NYSE:TU) 2008 Schneider Power Inc. Initial Public Offering (TSXV:SNE) 2010 Schneider Power Inc. Sale to Quantum Fuel Systems (NASDAQ: QTWW) 2014 Mediaco Inc. Private sale to Frischkorn AV (Ironbridge) Average time to liquidity/exit 3-5 years

17 Share Table Our founding shareholders are a combination of management, VC s and highly respected high net worth individuals. Number of Shares Pre-Closing % Outstanding Number of Shares Post-Closing* Management 6,000, % 6,000, % Venture Funds 5,500, % 5,500, % % Outstanding Private 2,200, % 2,200, % Current Offering - - 4,000, % TOTAL 13,700, % 17,700, % * Fully diluted

18 Registered Office 317 S 6 th Street Las Vegas, NV Web Division 228 Hamilton Ave., 3 rd Floor Palo Alto, CA Thomas Schneider t.s@kxter.com