REVOLUTIONIZING ENTERPRISE TRAINING

Investment Opportunity / 2014

Morf Media is a Red Herring Top 100 Winner and has been part of the PwC Accelerator Program to accelerate growth as a global company

CONTENTS

2

• Executive Summary

• Team

• Market Overview

• Product / Company Overview

• Investment Strategy / Funding

Requirements

• Product Overview and

Go-to-Market strategy

• Financials

• Summary

EXECUTIVE SUMMARYYear-over-year Change in Training spending in US (2006-2013)

3

Source: Bersin by Deloitte, 2013

7%6%

2%

-11% -11%

2006 2007

2008 2009

10%

12%

15%

2010 2011 2012 2013

EXECUTIVE SUMMARY

US corporate

training growth

reached 15% vs

2012 to over

$70bnin 2013

Globally,

the market

grew to over

$130bn in 2013

75%of all global

organizations cite

“skill gaps” in their

top 5 priorities

Up to

18% of all training is

delivered through

mobile devices

Corporate training market is exploding

4

Trends reflect

huge gaps in

learning given

new regulations

post crisis

The Learning

Management

Systems (LMS)

addressable market

estimated to be

$2bn

Morf is ready to

go to market now.

Given changes in

regulations, companies

are heavily investing

in training.

EXECUTIVE SUMMARY – THE OPPORTUNITY

While the need for corporate training is exploding due to

new regulations in many verticals including banking and

mortgage, training is costly due to class room settings

which consume payroll. Plus training today is boring.

Our solution enables companies to train

their employees via their mobile devices and online

so trainees can train anytime, anywhere.

Our training is simulations based to ensure optimal

understanding of the subjects tought.

5

EXECUTIVE SUMMARYMorf Media Advantage

6

• Gamified, simulation based, LMS (GILS®

Gamified, Intelligent Learning System®)

• Delivered via mobile devices or

desktops, no wasted payroll money

in classroom settings

• Utilizes behavioral psychology

and Artificial Intelligence to deliver

optimal results

• Employees can learn anytime,

anywhere in 2-5 minute simulations

• System provides employers with insights

into employees’ training performance

• Cloud delivered, subscription based,

predictable recurring revenue with

superior margins

• Proven management team,

“no learning on the job”

KEY MANAGEMENT

• Faster and better execution

• Vast experience in

outsmarting competition

• Track record with new

product introductions

• Deliver strong returns

to investors

• World-class talent

behind key management

Eduardo Cervantes

Chief Executive Officer

Eduardo has managed

and led 5 start-ups to

successful exits. He has

raised over $100 Million in

venture capital in the US

and Europe, and returned

over $500 Million in

shareholder profits.

Eduardo has 26 years of

experience and holds an

MBA from the University

of Texas at Austin.

Rudiger Diezman

Chief Product Officer

Rudi has built seven major

software platforms. He has

led software development

for Apple, Adobe and

Oracle. He has been

recognized in the Silicon

Valley as one of the top

software development

engineers of the Decade.

Rudi has been in the

industry in the US and

internationally for over 30

years.

Roy Hanif

Chief Revenue Officer

Roy has participated in the

founding teams of Oracle,

Cisco and OneDrum,

leading their sales and

marketing functions.

Roy has 26 years of

experience and holds

degrees from King Alfred’s

College and Winchester

University.

7

BOARD OF DIRECTORS

Yu-Kai Chow

Leading Gamification Expert

Yu-kai is rated #1 Gamification

Guru In the world by

Leaderboard. He is A frequent

Gamification speaker at

Stamford University, Google,

UCLA, and the Danish

Innovation Center.

Yu-Kai is the creator of the

complete Gamification

Framework: Octalysis which is

now classical reading on the

subject.

Mr. Jean Claude Petter

World Class Investor

Jean-Claude served as the

CEO of a Swiss Private bank

Ferrier Lullin in one of its

foreign entities, now called

Julius Baer Group, one of the

most important banking

conglomerates in Switzerland.

Jean-Claude has an extensive

network of prospective bank

customers as well as private

and institutional investors

Baron Axel von Schubert

Global Deal Maker

Axel is the Managing Partner

of JP Capital, a boutique

venture firm with seed

investments in the technology

sector based in London and

Geneva. He founded

Petrocapital Resources, PLC,

among other companies with

exits to public markets (AIM).

Axel has also served as

Honorary Consul for the

Dominican Republic.

Dr. Arthur Binenstock

Stanford U. Professor

Arthur is a Professor of

Applied Physics, Materials

Science and Photon Science

at Stanford University. He is

a policy advisor for The

Association of American

Universities.

Arthur is also the Special

Assistant for Federal

Research Policy to the

President of the United

States.

Includes leaders like:

8

CHAIRMAN OF MORF MEDIA

Kimberly Till

Chairman

She is an innovative, digitally savvy senior executive with a

history of driving P&L and business success throughout

complex global operations for multi-national companies in

technology, media and entertainment.

She currently serves on the board of DigitalGlobe, a

leading, publicly traded (NYSE) global provider of satellite

imagery products and services and Taunton, Inc., a multi-

channel media company that provides high-quality

information and inspiration to special interest enthusiasts

and professional craftspeople. Previously Till was the

President and Chief Executive Officer of Harris Interactive,

a global provider of custom market research and publisher

of the well-known Harris Poll. Earlier in her career, Till held

senior-level posts at Taylor Nelson Sofres, Disney, Sony,

Microsoft and AOL Time Warner.

9

MARKET OVERVIEW

10

*Deloitte Development, Inc. 2014

• Shortage of skills is

a major issue*

• Huge changes in banking

regulations demand

re-training of the industry

• Computer, Life, Physical

sciences and engineering

demanding more training

• Distributed sales-forces

require efficient training

“in-the-field”

• Investments are not

short-term, but identifying

capability gaps and

building a “supply chain”

of skills

The US market

was $70 Billion

for 2013, and

$130 Billion

globally*

According to

Delloitte, the

market is

expected to

grow 15%

in 2014

Training

budgets

increasing

15% on average

in 2013*

Fortune 100

companies

boosting

spending

on corporate

training

Incidental training $990

L&D excellence $1,071

Performance

improvement

and compliance $1,353

MARKET OVERVIEW

11

*Deloitte Development, Inc. 2014

Organizations across

the U.S. spent an

avg. of $1,169

per trainee

on learning and

development (L&D)

initiatives in 2013*

U.S. Europe,

and Asia are the

markets with the

highest demand for

training, with

immediate

addressable demand

of $2 billion in LMS

systems for 2014*

The time to invest

is now just as

banking and lending

regulations

worldwide are

changing!

PRODUCT OVERVIEW

12

Gamified Intelligent

Learning System® (GILS)

• Cloud based corporate learning platform

• With complete Gamification framework

to make training fun

• Training delivered in “Simulation”

format for full understanding of the

training subject

• Provides statistics on employee

training performance including

diagnostic data

• Provides traceability of training

compliance for companies that require it

• Easy to integrate with HRM, ERP and

CRM management systems

Revenue

Model

Monthly subscription

based on number of users

to provide shareholders

with a predictable,

recurring revenue stream.

The new fun

learning system

PRODUCT OVERVIEW

13

Excellence

Regulatory

Incidental

Training Content

No payroll wasted

in classrooms

Traceable compliance

Best trained employees

Employees Train

anytime anywhere

Employees enjoy

simulations

Conte

nt

Mana

gem

ent

Syste

m

Conte

xt

Driven G

am

ific

ation

Engin

e

Conte

xt

Driven S

imula

tion E

ngin

e

Management Dashboard

API Library – for ease of integration

3-5 Min Simulation a

3-5 Min Simulation b

3-5 Min Simulation c

3-5 Min Simulation d

3-5 Min Simulation f

3-5 Min Simulation e

Evalu

ation a

nd C

oachin

g E

ngin

e

Compliance Engine

GO-TO-MARKET STRATEGY

14

First Verticals

Mortgage Supply Chain

• Over 27,000 companies in

the US

• Average of 40 loan officers

each who need training

• Originators

• Brokers

• Title Handlers

Credit Unions

• Over 7,300 in the US

Distribution

Utilizing channel partners

already selling training

to organizations

(i.e. Connect2Learning)

• Channel recruitment

program

in development

• Channel enablement

program

in development

Customer

Entry Strategy

Pilot programs

STATUS

15

Version 1.0 (MVP) complete and in

testing with friendly organizations:

Mortgage lending industry – compliance and

integrated disclosures

Banking industry – compliance with new regulations

10 Full time employees

Administration x2

Sales and Business Development x1

Product Development x7

Located in San Francisco, CA

71 Stevenson Street, Suite 400

The new fun

learning system

COMPETITION

16

Very fragmented space with no clear leader

No competitors focused vertically on

Mortgage and Banking industry

Few competitors focusing exclusively on training.

Instead, training is only a module of an HR system

While there are minor forms of rewards to students,

none has a clear and complete Gamification framework

Few Learning Management Systems integrate with Active Directory,

ignoring role and rank of trainees,

which affects the materials they should access

COMPETITION

17

CompanySimulation

Environments

Gamfication

FrameworkNotes

Morf Media ✔ ✔ Engaging, immersive modules with

game-based features, assessment,

and smart data

SilkRoad ✗ ✗ CMS includes Performance Monitoring

and E-Learning. Focus on talent

acquisition and development

Cornerstone

OnDemand✗ ✗ Offerings include Recruiting, Learning,

Performance, and Extended Enterprise.

Claims 12 million subscribers

viaLearning ✗ ✔ In addition to E-learning solutions, also

provides services in Languages,

Marketing, and Legal

Expertus ✗ ✗ Focus on Sales and Customer Service

2 MAIN PRODUCT LINES

18

Interactive Virtual Environments and

Corporate Training Platform

Both lines of business have proven value and revenue potential

targeting consumer-focused brands and compliance / training

divisions of large corporations

Two-tiered product approach diversifies risk and

increases clientele reach

Two-tiered product approach offers 2 extremely valuable

and definable solutions to large corporations and brands

PAST CLIENTS & PROJECTS (INTERACTIVE VIRTUAL

ENVIRONMENTS

19

Malaysia Airlines

https://www.youtube.com/watch?v=c84OcGUjX8o&list=UU9rpww6g2XrXzbLIvS54wEg

Deutsche Telekom

https://www.youtube.com/watch?v=kd2K5AqjPas&list=UU9rpww6g2XrXzbLIvS54wEg

St Moritz

https://www.youtube.com/watch?v=PjhaRCmETgI&list=UU9rpww6g2XrXzbLIvS54wEg

Fairmont Hotel

https://www.youtube.com/watch?v=WxzZJqqXAgU

INVESTMENT STRATEGY

20

Demonstrate customer

pilot success and

return on customer

investment

Q4 2014-Q1 2015 Q2 2015-Q3 2015

A) Demonstrated

proven value to

customers

B) Customer adoption

C) Demonstrable

superior operating

margins

Q4 2015-Q1 2016

Raise $15M-$20M

for global

expansion and

product maturation

2016

Identify and

execute exit strategy

that maximizes

investor returns

SUMMARY

21

Few other markets are as big and

healthy as Corporate Education

at $120 Billion worldwide

with 15% growth

Morf Media has the proven

talent to execute flawlessly

and exit at impressive multiples

Morf Media has the only

Gamified, Simulation

Based, platform in the industry

to provide customers with

superior training because

trainees actually enjoy it!