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Company Profile March 2019

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Page 1: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

Company ProfileMarch 2019

Page 2: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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May 2015 Kurt KnewitzFormation Date Founder/CEO

- Financial Snapshot -

Company History

Kurt Knewitz was the founder of 5 Star SWD LLC, a saltwater disposal company operating in the Eagle Ford Shale of South Texas. Kurt led the expansion process seeking saltwater disposal properties for acquisition. After several weeks of exhaustive search, he quickly realized there was a significant need in the industry for an online marketplace that could help buyers and sellers of SWD’s connect and transact more efficiently and cost-effectively.

The seed was planted and in May of 2015, Kurt sold his interest in 5 Star SWD and immediately leveraged his expertise building internet companies and launched BuySWD.com to fill a critical gap within the saltwater disposal industry.

Page 3: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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Page 4: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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34

$40MM+Total Value of Completed

Transactions

Total Transactions Completed Since Inception

220Current Inventory of Properties (0.5% of

SWD Market)

Closing Ratio

$750MMTotal BuySWD Inventory

Value

- BuySWD Startup Phase 2015-2018 -

15%

Company Snapshot

$1.5MM+Total BuySWD Revenue

Highly Profitable

Easily Scalable

Market Leader

Growing Industry

Brand Power

Experienced Mgmt

Upside Potential

Page 5: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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Build the largest & most robust digital “ecosystem” enabling all SWD industry participants to interact and

transact in the most efficient and cost-effective manner.

Company Mission

Page 6: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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$40MM+Total Transactions

Since Inception (7/15 – 12/18)

$1.5MM+Total Revenue Since Inception

(7/15-12/18)

$18MM+ $840K+Total Transactions

(1/18-12/18)Total Revenue(1/18-12/18)

$0$2,000,000$4,000,000$6,000,000$8,000,000

$10,000,000$12,000,000$14,000,000$16,000,000$18,000,000$20,000,000

2015 2018

320% Sales Growth

Total Sales

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

2015 2018

420% Revenue Growth

Total Revenue

- Financial Snapshot of Startup Phase -

Financial SummaryStartup Phase (5/15-12/18)

Page 7: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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$18MM

2Total # of Current

Employees

2018 Total Annual SWD Property Sales

$42MM

5Total # of Employees

To Be Hired

Total Offers Submitted & Pending Sales

- Financial Snapshot -

2019 Financial Projections2018 Actual 2019 Target

2018 Total Annual SWD Success Fees

$840K $1.58MMTotal Pending SWD

Success Fees

2019 Pending

$50MM

Total # of Employees Post Funding

2019 Total Projected SWD Property Sales

$1.5MM2019 Target Annual SWD Success Fees

7

Page 8: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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220+

$750 MillionTotal Current BuySWD Inventory Value

Total Current SWD Inventory

40,000# of Saltwater Disposal

Wells in U.S.

Total BuySWD Current Market Share

$20BillionTotal SWD Market

Value

- BuySWD.com Current Market Share Snapshot -

BuySWD Current Inventory

Total SWD in U.S. BuySWD Current Inventory

0.5%

Current BuySWD Market Share

40,000 220

Page 9: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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40,000# of Saltwater Disposal

Wells in U.S.

$20BillionTotal SWD Market

Value

2.0%800Target SWD Market

Share By 2021Target SWD Inventory

By 2021

- BuySWD.com Market Share Projections -

$3.0 BillionTarget SWD Inventory Value By 2021

BuySWD Target Inventory

Total U.S. BuySWD Target Inventory

2021 Target Market Share

Page 10: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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220Total Current BuySWD

Inventory

$750MMTotal Current BuySWD

Inventory Value

- BuySWD.com Growth Projections -

15%Total BuySWD

Sales Ratio

$40MMTotal BuySWD

Transaction Value

34Total BuySWD Transactions

800Target BuySWD

Inventory

$3BTarget BuySWD Inventory Value

15%Total BuySWD

Sales Ratio

$180MMTarget BuySWD

Transaction Value

120Target BuySWD

Transactions

Startup Phase (’15-’18) Growth Phase (‘19-’21)

$6.75MMTotal Target BuySWD

Success FeesTotal BuySWD Success Fees

$1.58MM

Page 11: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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25%Total Projected SWD Property

Sales Transactions

- BuySWD.com Investor Projections -

Projected Returns

$180MM

Growth Phase (‘19-’21)

$6.75MM

Percentage of Gross Sales Revenue To Be Distributed To Investors

$1.68MMTotal BuySWD Projected Income

Distributions Returned To InvestorsTotal Projected

BuySWD Success Fees

73% Estimated Return on Capital Contributed During Growth Phase (2019-2021) From BuySWD.com Alone, Not Including other BuySWD.com products (ie: SWDInvest.com,

SWDEquipment.com, MidstreamMarket.com, SWDJobs.com, SWDFund.com)

Page 12: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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Total Capital Raise For Corporate Expansion

- Terms Of Offering -

Terms Of Offering

$2.3MM

Total Equity in BuySWD.com LLC &

BuySWD.com FOC LLC “Family of Companies”

• BuySWD.com v3.0• SWDInvest.com• MidstreamMarket.com• SWDEquipment.com• SWDJobs.com• SWDFund.com

• PermianPipeline.com• H2OPipeline.com• PermianSWD.com• SWDFinance.com• SWDLoans.com• SWDMarket.com• Saltwater-Disposal.com

Future Potential Addt’l Products

New Products To Be Developed

25%

Total Gross RevenueRecapture To “Payout” For

Participating Investors

“Family Of Companies”

25%

Page 13: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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Total Projected BuySWD.com Family Of Companies Revenue

- BuySWD Family Of Companies Investor Projections -

Projected Returns

$15.1MM

Growth Phase (‘19-’21)

3 Year Total Revenue Projections By Co

BuySWD.com SWDInvest.comMidstreamMarket.com SWDEquipment.comSWDFund.com SWDJobs.comMisc Income

$5.4MM$630K

$1.5MM

$4.3MM~$3.7MM

Total Projected Investor Returns @ 25% Gross Revenue Recapture

42-53%Total Projected Annualized Rate

of Return (ROR) To Investors

$2MM

$1MM

Page 14: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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BUYERS

INVESTORS VENDORS

SELLERS

SERVICE PROVIDERS

The current BuySWD marketplace only connects buyers & sellers

OPERATORSOWNERS

- The BuySWD Marketplace -

Page 15: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

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BUYERS

INVESTORS VENDORS

SELLERS

SERVICE PROVIDERS

The NEW digital ecosystem will connect ALL industry participants

OWNERS OPERATORS

- The SWD Digital Ecosystem Model -

Page 16: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

BuySWD.com - #1 Online Marketplace to Buy & Sell Saltwater Disposal Wells

Buyers, Sellers BuySWD.com Version 3.0 to be developed & launched by 5/1/19

SWDInvest.com – Investment platform for accredited investors to buy fractional interest in profitable SWD’s

Investors, Buyers, Sellers Currently in development scheduled for 2/1/19 launch date

MidstreamMarket.com – Online marketplace to Buy & Sell water midstream assets

Buyers, Sellers, Investors Scheduled to begin development on 3/1/19 for 6/1/19 target launch date

SWDEquipment.com – Online marketplace to Buy, Sell & Trade SWD related parts & equipment

Owners, Operators, Buyers, Sellers, Vendors, Service Providers

Scheduled to begin development on /1/19 for

SWDFund.com – Investment platform for institutional Investors (Income Fund/REIT)

Investors, Sellers, Buyers Scheduled to begin development on 6/1/19 for 7/1/19 target launch date

SWDJobs.com – SWD service provider network & employment portal

Owners, Operators, Buyers, Service Providers

Scheduled to begin development on 5/1/19 for 8/1/19 target launch date

15

The Future BuySWD.com “Family of Companies”

- BuySWD Future Development Plan -

Page 17: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

15- Expansion Capital Allocation Table -

Use of ProceedsPersonnel $800,000 34.78%

Product Development $400,000 17.39%

Advertising/Marketing $200,000 8.70%

Office Space $80,000 3.48%

Equipment/Furnishings $120,000 5.22%

Contingency $180,000 7.83%

Technology Subscriptions $37,000 1.61%

Travel/Meals/Lodging $43,000 1.87%

Consulting $140,000 6.09%

Offering & Placement Cost $300,000 13.04%

TOTAL $2,300,000 100.00%

Page 18: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

15- Personnel Plan -

Kurt Knewitz (Founder)

Marketing

Accounting

Administrative

Sales

Information Technology

Janitor & Bottle Washer

Startup Phase (‘15-’18) Growth Phase (‘19-’21)

Kurt Knewitz (Founder/CEO)

Jason Grounds (Managing Partner & VP

of Sales/Sales #2)

John Kelly (Managing Director –

SWDInvest.com)

Sales #3Marketing Manager

Sales #4

Sales #5 (opt)

SWDEquipment.com Manager

SWDJobs.com Manager

MidstreamMarket.com Manager

Office Manager

Page 19: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

15- Potential Exit Snapshot -

Potential Exit Snapshot (3-Year)BuySWD.com & SWDInvest.com Revenue $10,300,000

Other BuySWD.com FOC LLC Business Units Not included

Total 3-Year Investor Cash Flow (25% Gross) $2,600,000

Sale of BuySWD.com & SWDInvest.com $15,200,000

Sale Proceeds To Investor (25%) $3,800,000

Total 3-Year Return On Investment (ROI) $6,400,000

Total 3-Year ROI (%) 270%

Average Annualized ROI (%) 90%

Investor 1-Unit EconomicsTotal Capital Contributions $2,300,000

Total # of Units Available 100

Total BuySWD.com FOC LLC Equity Available 100%

Investment Amount Per 1-Unit $23,000

Equity Per 1-Unit Investment 1.0%

Total Est. 3-Year Income Per 1-Unit $26,000

Total Est. Investor Proceeds on Exit $38,000

Total Est. 3-Year Return Per 1-Unit $64,000

Total Est. 3-Year Investor ROI Per 1-Unit 270%

NOTE: BuySWD.com FOC LLC investors will receive 25% equity in BuySWD.com and all “Family of Companies” to be developed. Investors will also receive 25% of gross revenue generated by all business units until 100% of capital contributed is returned and

then distributions will be calculated on a net income basis versus gross revenue.

Page 20: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

16- BuySWD Family of Companies To Be Developed -

Page 21: PowerPoint Presentation · 2019-03-19 · Company Profile March 2019. 1. May 2015. Kurt Knewitz. Formation Date. Founder/CEO - Financial Snapshot - CompanyHistory Kurt Knewitz was

Contact Info:

John KellyP: (214) 460-6814

[email protected]

Disclaimer: Certain information set forth in this presentation contains “forward-looking information”, including “future oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-lookingstatements). Except for statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from,the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects and joint ventures; (iv) execution of the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; (v)sources and availability of third-party financing for the Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company’s current customer, supplier andother material agreements; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so thatthey may use such beliefs and opinions as one factor in evaluating an investment. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known andunknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future eventscould differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securitieslaws. The reader is cautioned not to place undue reliance on forward-looking statements.