Guardian Patch Segmental Business Plan – JV with GOPH

1 Guardian Patch Segmental Business Plan – JV with GOPHSe...
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1 Guardian Patch Segmental Business Plan – JV with GOPHSeptember 2016 Strictly Confidential – For Internal Use Only Guardianpatch.com Gopherprotocol.com Dr. Danny Rittman

2 The Business Model The Product Guardian Patch Guardian Patch is a unique location technology that works with or without GPS. Guardian Patch's proprietary technology tracks people or assets anywhere on the planet, working via its own private, secured communication channel/protocol. Works with a mobile App – or Computer Registers multiple patches with a single ID Receives your location/update the patch’s location Tracks the PATCH anywhere on Earth! Installs on multiple phones to share the location About the App Tracking is very easy on the App - le Watch compatible App available for both iOS and Android. Store Vital data within the PATCH The Guardian Patch is slated to arrive in consumer markets in 2017. *) The App can be downloaded for free at the Apple Store and on Google Play under the name "Guardian Patch." As a courtesy to the public, the Company previously released the Guardian Patch app to provide users with live views of the Guardian Patch units during testing.

3 The Business Model The Concept The Concept The revolutionary mobile microchip technology will enable people to track virtually any object anywhere on the planet simply by attaching a small, lightweight and flexible patch to the object that is to be tracked. The object can then be tracked via a mobile device or computer. Your vehicle is here Your Vehicle (VIN #: JN1HJ01C9PT022115) License Plate: PLA1234 Location Address: 1200 Bridge Street, Santa Monica, CA 92112 Nearest POI: ADP Capital Status: 35 MPH – Traveling NW Last PING Sent: 12:35PM Next PING will be sent at: 13:35PM Latitude, Longitude: ° N, ° W Mobile Device identified within vehicle: Serial # Registered to: John Doe

4 The User Experience Buy Register Install Track Receive ShareThe Business Model The Product The User Experience Buy Register Install Track Receive Share Buy the product (one or more patches). Register the patch via an ID. One can register many patches through a single ID. Install the mobile application (powered by GopherInsightTM technology) on your device. Track the patch anywhere by just following the map. Receive hourly location updates. Share the location of the patch with anyone who also has the GopherInsightTMpowered app on their device. Note: If the patch is removed, it automatically sends an SoS signal to designated phone number or 911 if authorized by user.

5 Guardian Patch - AdvantagesThe Business Model The Product Guardian Patch - Advantages Track Anything The patch can be affixed to any object (not just a vehicle) and can be tracked. Real time Tracking Tracking takes place in real time. No GPS The product does not require a conventional network or GPS system to track the object. No area restriction The product enables worldwide tracking (no distance restrictions). Theft recovery In case of theft, it is easy to track the object’s location using the product. Reduced Insurance May reduces insurance costs. Climate proof The product is weatherproof and resistant to even extreme temperatures. Location Sharing The product also provides location sharing between people who have the mobile app. SoS If the patch is removed by anyone, it sends an SoS signal to the registered user or to 911 if authorized by the user. Price Pricing unbeatable-product is introduced at merely $ first year – introduction price, then after $34.92 as retail.

6 Summary of Competitive DifferentiationThe Market Market Research Summary of Competitive Differentiation The Guardian Patch is a revolutionary, compact, and self-contained device that provides breakthrough functionality in anti-theft and asset tracking.  The patch, which can be attached to virtually anything, provides global location and emergency notification services to smartphones via the mobile phone app. The unique technology is patented, and is differentiated in the following ways: The Guardian Patch can leverage existing GPS systems, but also includes highly-advanced low frequency mesh network technology and antennas to enable broad coverage from inexpensive small transmitters.  Normal battery life for the patch is estimated to be one year, and is contained within the device. The device does not need to be connected to a car battery in order to work. The device is extremely easy to install by the end user. Lojack requires installation by a trained technician, which is expensive, and OnStar is installed by the car manufacturer.    The combination of long battery life and broad network coverage in a compact device is unique, as some small devices will last a few days or they simply do not have network coverage.  Guardian Patch incorporates patented advanced software and antennas that enable the revolutionary performance. The small size of the device makes it difficult for a would-be thief to detect and to remove.

7 Current Market scenarioThe Market Market Research Current Market scenario The personal location devices and applications market has been around for a number of years, but it is still in its infancy. Growth potential is huge—there is a large market of potential customers, clear benefits for users, and even the potential of legislation that will further drive market growth. The GPS device market is transitioning as traditional markets struggle to find mass-market adoption. However, on the positive side, technologies and markets will create a lot of upside potential for those who can move with or ahead of the market. According to the latest edition of ABI Research’s personal tracking device report, the GPS device market in traditional verticals will be approximately $2 billion by 2021. The market has made progress, with many of the barriers surrounding cellular M2M connectivity having come down, yet it remains hampered by fragmentation, high prices and a lack of awareness. There is a consensus within the industry that the market is large enough to support hardware and smartphone applications. Many are now looking at ways to combine both. Traditional hardware vendors like GTX Corp and Connexion2 have launched their own applications, while application developers like Life360 are looking to use their huge installed base as a way to drive additional revenue through hardware. Source: and https://www.abiresearch.com/market-research/product/ personal-location-devices-and-applications/

8 There were an estimated 689,527 motor vehicle thefts in 2014.The Market Market Research Specific Market Focus: Auto Theft Recovery and Prevention There were an estimated 689,527 motor vehicle thefts in 2014. Other key statistics: • In 2014, of all motor vehicles stolen, 74.5% were automobiles. • More than $4.5 billion was lost nationwide due to motor vehicle thefts in The average dollar loss per stolen vehicle was $6,537. California-specific statistics for auto-theft: • California topped the list of states with the most reported motorcycles thefts in 2015, with 7,221 reported thefts out of a total of 45,555 nationwide. • Vehicle tracking systems are becoming increasingly popular in consumer vehicles. They aid in theft prevention, asset monitoring and retrieval. Although the Patch can be used to track many things, including shipments and hard assets to reduce inventory shrinkage, our initial focus will be on auto theft prevention and recovery in California, where the company is headquartered.

9 The Market Competition Competitive Analysis Most vehicle recovery systems combine a GPS transmitter (for vehicle tracking) and cellular technology (to transmit the information to and from a monitoring center). Hence, there is no direct competition to the product being introduced by the company, which does not require GPS. Vehicle recovery systems are either factory-based systems (GM OnStar being the most popular of these) or aftermarket systems (e.g., Mobile IQ, Zoombak and LoJack). The LoJack Stolen Vehicle Recovery System is an aftermarket vehicle tracking system that allows police to track vehicles with the aim of recovering them after theft. The manufacturer claims a 90% recovery rate. The name "LoJack" was coined to be the "antithesis of hijack", wherein "hijack" refers to the theft of a vehicle through force. LoJack’s core business comprises the tracking and recovery of cars, trucks, construction equipment, commercial vehicles and motorcycles. However, LoJack is expanding into new markets through licensing agreements and investments in areas such as cargo security and people at risk of wandering (probationers, parolees, and Alzheimer's patients). LoJack Corporation claims that over 300,000 vehicles have been recovered worldwide since the product was introduced more than two decades ago. LoJack has the significant advantage of being the only stolen-vehicle-recovery system used by the police. However, it is quite expensive. It comes with a one-time price tag of $695 MSRP ($995 with an added early warning feature). Future evolution of the Guardian product will allow remote control of the vehicle on top of other features.

10 Competitive Analysis The Market CompetitionOnStar Corporation is a subsidiary of General Motors that provides subscription-based, in-vehicle security, and remote diagnostics systems throughout the United States, Canada, China, Mexico and Europe. There is also a similar service, ChevyStar, available in Latin American markets (except Mexico). In September 2011 the president of OnStar reported that the service had more than six million customers. All Stolen Vehicle Assistance services (Stolen Vehicle Tracking, Stolen Vehicle Slowdown and Remote Ignition Block) can be requested by the OnStar subscriber, but OnStar will not activate them until confirming with the police that the vehicle has been reported as stolen. Vehicle owners can choose between two plans: Safe & Sound: US$19.95/month, which includes advanced automatic collision notification, stolen vehicle assistance, roadside assistance, remote door unlock, remote horn and light flashing, red button emergency services and remote vehicle diagnostics. Directions & Connections: US$29.90/month, includes all services in the Safe & Sound plan, plus turn-by-turn navigation.

11 The Business Model The Product Differentiation There are GPS-based vehicle-tracking devices and many, short-range, Bluetooth-based tracking devices in the market today, but tracking devices that use GPS are limited, require a carrier and need to have unimpeded signal. They also require often-complicated and costly installation and monthly fees. The short-range, Bluetooth-based devices can provide tracking for a few dozen feet at most. The Guardian Patch is the first and the only device that does not depend on either GPS or Bluetooth. It is affordably priced and its size/shape make it the perfect device to use with a variety of different tracking applications. Users can track vehicles, valuables, people—virtually anything!

12 The Business Model The Product Differentiation The Guardian Patch is also easy to hide in a vehicle, and is not powered by the car battery. A car thief with the correct tools can disable OnStar or similar GPS system in about 10 seconds, simply by popping the hood of the car, and disconnecting the GPS device from the car’s battery. The patch can be hidden anywhere on or inside the vehicle, making it difficult (if not nearly impossible) to find, and it has its own battery. It is not connected to the car battery, so it can’t be disconnected from that battery.

13 Online Wholesalers Radio shake Event Stalls Gas StationsThe Business Model Sales & Distribution Sales Channels Guardian Patch will be sold via two major channels: online and wholesalers. The product will be presented for pre-sale using social media on top of customary distribution channels. The Company assumes that first year sales will be 100% online, and retail sales will pick up from the second year. The product will be sold online for $19.98 per patch. The product will also be sold in packs of 3 during the introduction period, and will be available in a wide range of shapes and colors. Online Radio shake Event Stalls Sales via wholesalers will include sale points like 7-eleven, gas stations, liquor stores, retail outlets, etc. Wholesale pricing will be set at $15.00 with retail price of $34.92. Wholesalers Gas Stations

14 Product Pricing Place Promotion Marketing MixMarketing Plan Marketing Mix Marketing Mix Product The Guardian Patch tracking device contains groundbreaking technology. The patch reports location details from anywhere on the planet, every hour. Pricing The product will be introduced at cost $19.98 per patch per year - then after retail price will be $34.92 Place Though the initial set of clients and customers will be in the US, the product will eventually be sold globally. Promotion The product will be promoted using social media, Internet marketing, networking, conferences, press releases and strategic partnerships.

15 Press Releases Social Media Website Partnerships Marketing StrategyMarketing Plan Marketing Strategy Marketing Strategy Press Releases Increasingly, heavy emphasis on social media as a public relations and marketing tool is making it important to explore alternative publishing options when preparing press releases. Posting a press release on websites and promoting it through social media or an online press release distribution service will allow Guardian Patch Corporation to directly communicate information to a mass audience, while simultaneously targeting specific groups with powerful messaging. These could also incorporate keywords using search engine optimization tools and can significantly increase the Company’s visibility and reach. Social Media Social Media is a powerful tool when it comes to marketing technology-based products. The company has hired three companies to deal with the social media marketplace. They will design professional marketing strategies that will have an impact on the sales and revenue of the company. First Media will “tell a story”, second will bring traffic into the product and third will convert likes into purchases. Website The company already has its own website up and running. On top of that, it has allocated funds for website and art media collateral. The website will be used as a tool to engage visitors by posting tips, tricks, and tutorials and publishing interesting content. The Company’s website will be SEO ready and google keyword friendly in order to capture traffic from these searches. To reach key customers (existing and prospective car owners), the Company will partner with vehicle manufacturers and fleet management companies. The company will also establish partnerships with cellular providers, phone companies and microchip corporations. Retaining professionals in the media industry will enable the company to make its presence felt in the market and convert likes to revenue. Partnerships

16 The Management for JV consist ofDr. Danny Rittman – CTO services provide by GOPH Dr. Danny Rittman is the Director and Chief Technology Officer of Gopher Protocol Inc. the Guardian Patch, LLC JV Partner, and he provides CTO services to the LLC. He is a software architect and an integrated circuit technology expert. He is also a semiconductor designer with over twenty years of experience with companies including Intel, DEC, IBM and Qualcomm. He has worked on many prestigious integrated circuits projects (Intel’s Pentium Pro, DEC’s Alpha chip, and others). Dr. Rittman was the founder and CTO of BindKey Technologies, an EDA corporation that was acquired by DuPont Photo masks. He is a key figure in the EDA (Electronic Design Automation) arena and has led software and hardware teams world-wide. Dr. Rittman’s role is to lead the company’s technological direction and goals. His responsibilities include: Managing mobile software development teams and leading integrated circuit design team to produce state-of-the-art microchip functionalities and features. Inventing new ideas within the mobile software and smart-chips arena. Working with leading corporations in the mobile industry to discuss future mutual cooperation. Giving presentations and initiating discussions with potential partners/customers. Writing technical papers, giving tradeshow presentations and lecturing worldwide for marketing development. Sharing and executing R&D strategies in a matrix organization both locally and globally. 2014-NOW Chief Technology Officer/Director Gopher Protocol Inc. – JV Partner Senior Integrated Circuit Consultant Qualcomm/Max Linear Founder and CTO Micrologic Design Automation Integrated Circuit CAD/Software Senior Consultant IBM Founder and VP R&D Bindkey Technologies PhD – Computer Science La Salle University 1998 MSc – Computer Science 1996 Danny’s Work Timeline Electrical Engineering University of Bridgeport, CT 1992

17 The Management Management, Admin and Marketing is being provided by Gopher Protocol, Inc. Michael – CEO Michael Murray is the CEO of Gopher Protocol Inc., and is the Chairman of the Board of Directors of the company. Michael has considerable experience in startups in Fintech and in Real Estate, and he contributes his vast experience, education and personal dedication to professionalism to this platform. Erik – CFO Erik Klinger has worked at Price Waterhouse in New York, and then was an Associate at a private equity firm in Los Angeles, specializing in executing Leveraged Buyout transactions. Since then, he has started 3 companies, and is also the founder and CEO of Dealounge. He graduated from Dartmouth College, and earned an MBA from the Anderson School at UCLA. Mansour- CMO Mansour combines his experience with big-box retailers, social media, and crowdfunding, which gives the company a competitive edge in sales and marketing. He has developed and marketed many consumer websites including EagleRider and Leisurelink. Additionally, he built distribution and marketing systems for Expedia, Orbitz, Saber, Amadeus and Hotels.com. He has a degree in Electro Engineering from the Technical University of Aachen in Germany, and has also studied Economics at the HS Wuppertal.

18 Sources and Uses of FundsThe Company is seeking equity investments of $5 million which will cover design and development costs, marketing and the manufacture of about 40% of needed inventory. Sources and Uses Amount ($) Uses of Funds Design and Development $ 1,500,000 Manufacturing Marketing $ 2,000,000 Total $ 5,000,000 Sources of Funds Equity Investors $ 3,000,000

19 Thank You