INVESTMENT OPPORTUNITY NOTE

SUMMARY BUSINESS OVERVIEW MICRO-ID

www.microidglobal.com Office address Nova House, Edward Way, Victoria Business Park, Burgess Hill, West Sussex, RH15 9UA

General information

Identification technologies

Trading and expanding rapidly

Launched in 2011

9 staff

Turnover 2013 $900,000

Annual growth of 80%

$5bn plus market

Eligible for EIS Key achievements:

Launch of innovative hand held I-SCANNER.

Secured Centaur & Henry Schein, largest global vet distributor as client.

International

Micro-ID is a global supplier of RFID microchips for animals, pets in particular, along with scanners and linked products and services to veterinarians, animal welfare professionals, zoos, wildlife professionals and consumers worldwide. International legislation is expanding the market as many countries take steps to get pet populations, particularly dogs, under closer regulation. Over the last year we have secured distributors and new sales in Scandinavia, Greece, Latvia, Czech Republic, Turkey, Belarus, Estonia, Moldova and Portugal and negotiations are now underway in Italy.

These partnerships are supplemented by a dedicated UK based telesales team, trade exhibitions, ecommerce sales initiatives including a successful multilingual webshop, and trade advertising. Joint ventures in the pet sector are being negotiated and new product development including scanners, pet insurance and security products for high value personal assets such as antiques, bicycles, golf bags, saddles are also under development with patent and licensing opportunities going forward.

We have secured annual growth of 80% over each of the past 3 years, proving the market with a turnover of $900k in 2013. With the appointment of further distributors, including one in the USA during 2015, the development of new products, services and joint ventures, and the acquisition of large batch coded microchip stock, turnover is set to reach $10 million and a profit of $1.5 million by 2017.

MARKET INFORMATION

The pet market is huge, expanding and well structured. The World Society for the Protection of Animals (WSPA) identifies a total global pet population of over 800 million including 341,466,000 dogs, 281,555,000 cats and over 2,ooo,000 other companion animals. There are 184,568 registered veterinarians worldwide, The UK pet population is over 25 million. Recent legislation requires every one of the 8 million dogs in the UK to be microchipped by 2016. Only 50% are at the moment, with the rest representing a sales opportunity with a value of $30 million. The US cat and dog population is 151 million with a further 50 million other companion animals. The US is currently behind the UK with 150 million pets yet to be chipped. There are 49,130 vet practices in the USA with a clear route into the market.

2

partnership with Swevet, Sweden Contracts with RSPCA and Cats Protection. Major supplier to most UK Zoos in London Zoo

UK GovernmentRegional Growth fund grant via Coast to Capital.

MAS fund for scanner design

There are only 4 companies in the UK market, of which MICRO-ID is one of the strongest, and some 15 in the USA. The largest global player, Bayer, issues chips but provides no pet recovery or linked services, leaving large sections of the market unaddressed.

MANAGEMENT TEAM

MD, FOUNDER AND CHIEF TECHNOLOGIST Richard Fry, a leading figure in the RFID business in the USA and UK for the last 25 years, a former member of the ISO working group which determined the international standard for RFID now used worldwide, and the founder of Avid PLC and Pet-Id, both successfully sold on. RFID product design expert with high level partnership and sales skills, Fellow of the Institute of Direct Marketing. HEAD OF FINANCE AND HR Gillian Voute, former director of high street retail businesses in fashion and home décor. HEAD OF SALES Charlotte Fergusson, eleven years experience driving sales in pet RFID sector. LEAD ADVISER/TRAINER FOR VET SECTOR Andrew Pound UK RFID pioneer for 26 years building Director of successful brand of Identichip. ECOMMERCE MANAGER Briony Hadrell six years experience of driving ecommerce in pet sector. ITALIAN SALES LEAD Alessia Cucca successfully negotiated licence to sell Micro-ID products in Italy and leading distribution initiative. Additional staffing includes sales team and bookkeeper. USA ADVISER/PARTNER Rishi Raj, worked at Aldi USA for 4 years in charge of pet products.

INVESTMENT REQUIREMENT

Micro-ID is seeking $400,000 in return for 10% equity with EIS relief available for UK tax payers or a loan of $400,000. The investment will be used to enter the US market, develop new products including an app, purchase bulk microchip batches, and fund patent applications and product manufacturing.

EXIT STRATEGY

Trade sale within 3 to 5 years or later flotation / based on company valuation in the region of $30 million.

sales gross profit net profit 2014/15 $2,000,000 $800,000 $300,000 2015/16 $4,000,000 $1,500,000 $600,000 2016/17 $10,000,000 $4,000,000 $1,600,000 2017/18 $15,000,000 $8,000,000 $2,500,000 2018/19 $25,000,000 $12,000,000 $4,000,000

This document has been prepared by Micro-ID It is intended only for sophisticated investors categorised by the FCA as ‘Intermediate Customers’. It is not intended for US investors. RISK WARNING: At this stage this document does not constitute an invitation to invest and is for information purposes only. Note that unquoted early stage investments are high risk and are not readily realisable as there is no recognised market for shares and investors may not be able to obtain reliable information about value or risk exposure.