prayerspark slide deck 09 13-16

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Michael Feder, Founder “Paradoxically , in the midst of a social media revolution, increasing numbers of people find themselves isolated.”

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Page 1: PrayerSpark slide deck 09 13-16

Michael Feder, Founder

“Paradoxically, in the midst of a social media revolution, increasing numbers of people find themselves isolated.”

Page 2: PrayerSpark slide deck 09 13-16

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Connecting People to Prayers with dedicated Spiritual Leaders around the World

Top left to bottom right: Charlotte Morgan, USA; Cheri Yavu-Kama-Harathunian, Australia; Frederic Burcklé, Belgium; Kunsang Tenphel, India; Lobsang Tsultrim, India; Lodoe Gyatso,

India; Napoleon Reyes, USA; Pamela Taylor, USA; Peggy Wellknown Buffalo, USA; Rabbi Eli Mallon, USA; Rabbi Shai Specht, Israel; Ralph Singh, USA; Reverend Martha New, USA;

Reverend Willie Jones, USA; Rev. Linh Hoang, USA; Sheikh (Prof/Dr) Shaheed Satardien, Ireland; Subramania Siva Yogi, India; Yungchen Lhamo, USA

prayerspark.com/leaders

Page 3: PrayerSpark slide deck 09 13-16

What is PrayerSpark?

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Clinical Apps for Addiction, Hospice, Stress Management, and more.

PrayerSpark has secured dedicated channel partners for our first clinical apps in:

Addiction Recovery

Hospice / End of Life

Occupational Therapy

University Student Wellness

Startup/Corporate Wellness

After successful rollout to our first channel partners, we will move into related channels:

Cancer Care

Military/Veteran PTSD

Healthcare Stress Management

PrayerSpark is a Business-to-Business, Software-as-a-Service platform with early traction

in the rapidly expanding telehealth and personal wellness spaces.

Page 4: PrayerSpark slide deck 09 13-16

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Addiction Recovery Market

• Substance abuse costs $600 billion USD annually in direct care costs and lost human opportunity [NIDA].

• SAMHSA estimates the addiction treatment market generates $35 billion per year.

• Treatment programs are 12-Step based, and are helpful for up to 10% of recovering addicts. This equates to a nearly 92%

relapse rate, leaving significant room for outcomes improvement.

• 12-Step programs require "surrender to a Greater Power" for effectiveness.

• 35% of Millennials self-identify as “Unaffiliated” with any particular religion [Pew Research], which may reduce their ability to

use 12-Step programs effectively.

• 23 million Americans (7% of the total population) age 12 and older are addicted to alcohol and other drugs. 2.5 million (11%)

received care at an addiction treatment facility in 2012.

• There are approx. 16,000 treatment centers in the US, each spending significant marketing dollars to show differentiation and

gain patients.

• Insurers are now required to cover substance abuse addiction by the Affordable Care Act. HHS estimates expanded coverage

for another 62.5 million Americans.

THE PROBLEM

MARKET SIZE: PrayerSpark PRO Addiction app

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Addiction Recovery Market

• Strategic alliance with Solutions Recovery, a leading rehab facility in Las Vegas, to create the world's first white-label clinical

addiction app that provides spiritual support to patients in recovery.

• Compare clinical outcomes between patients who use our app, with those who don't. In addition to professional spiritual

support, the app leverages powerful social networking support and behavioral modification techniques to encourage

sobriety. We expect this multifaceted approach will facilitate reduced relapse rates.

• Any reduction in relapse rate will be hailed a tremendous victory for addiction medicine, and likely define our platform as an

essential "best practice“ for all recovery centers.

• American Addiction Centers bills $800 per day per patient. With a census of 150 beds (eg. Desert Hope, Las Vegas) and a SaaS

subscription model of just $3 per day, PrayerSpark Addiction Recovery App could generate $164,000 from a single center.

• Using a conservative 90-day minimum treatment period (NIDA) and a 2.5 million yearly patient census (SAMHSA), PrayerSpark

yearly revenue could reach $675 million for the US addiction population in treatment centers.

PLAN

REVENUE POTENTIAL

(cont.)

Page 6: PrayerSpark slide deck 09 13-16

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Hospice Market

• Patients with terminal illness seek spiritual comfort in their final days, even if they previously did not consider themselves

religious. Family members also require spiritual support as they lose a loved one. 94% of hospice care is home-based, where

there is no dedicated clergy.

• Hospice centers are required to provide 1) emotional, psychosocial, and spiritual assistance to patients, and 2) bereavement

care and counseling to surviving family for up to 1 year following death (NHPCO).

• Hospice providers must attain minimum performance measures or risk reduced reimbursement. These measures include

1) Family Evaluation of Hospice Care (FEHC), and 2) Family Evaluation of Bereavement Services (FEBS).

• A clinical app which provides robust spiritual support would be welcomed by patients, families, and the hospice providers

themselves.

• In 2013, an estimated 1.61 million patients received hospice services, at a combined cost of $18.9 billion.

• Approximately 45% of all deaths in the US are under the care of a hospice program.

• Due to an aging population, and compulsory hospice service coverage by CMS, utilization is expected to increase 7% per year.

• There are 5,800 hospices in the US, each with a fraction of market share, seeking differentiation and proven positive

outcomes.

THE PROBLEM

MARKET SIZE: PrayerSpark PRO Hospice app

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Hospice Market

• Strategic alliance with a leading hospice provider in Las Vegas to create the world's first white-label clinical hospice app that

provides spiritual support to patients and their families at end-of-life.

• The app will track and support the patient and family's spiritual needs during the end-of-life period, as well as the

bereavement year, with positive messaging and support, intended to validate agreeable responses on the FEHC and FEBS

performance evaluations.

• Any improvement in Family Evaluation indicators will likely define our platform as a "best practice", essential for hospice

providers.

• Example: Vitas Healthcare has a national average daily census > 14,000 patients. Using a SaaS subscription model of $3 per

day, PrayerSpark Hospice Support App could generate $15.8 million from a single hospice provider.

• With a total annual hospice population of 1.61 million patients x 73 day average length of stay x $3 per day, PrayerSpark

yearly revenue could reach $350 million.

PLAN

REVENUE POTENTIAL

(cont.)

Page 8: PrayerSpark slide deck 09 13-16

Addiction Recovery App

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• Gamified encouragement shows progress with inspirational timer and milestone badges. • Daily or weekly prayers from a preferred spiritual leader of any religious denomination. • Instant access to positive affirmations in times of weakness. • Stress reduction methods include guided meditations, relaxing soundscapes, and breathing biofeedback. • Secure, invitation-only social networking allows a safe support group chat room. • Panic button to alert institution staff of imminent relapse risk, and institute immediate intervention.

Page 9: PrayerSpark slide deck 09 13-16

Market Size – US PrayerSpark.com

An overwhelming number of people believe in the

power of prayer, but choose not to affiliate with a

specific church or religious organization, choosing

instead to identify themselves as “spiritual.” A

recent survey by the Pew Research Center’s

Religion & Public Life Project finds that many of the

country’s 46 million unaffiliated adults are

religious or spiritual in some way.

Two-thirds say they believe in God (68%). More

than half say they feel a deep connection with

nature and the earth (58%); more than a third

classify themselves as “spiritual,” but not “religious”

(37%); and one-in-five (21%) say they pray every

day. These people often feel they are unable to

turn to congregations to support themselves or

their loved ones with prayer. (http://www.tennessean.com/story/news/religion/2015/03/07/spiritual-

religious-becoming-common-refrain/24448811/)

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46 million unaffiliated prospective users, 9.7 million who pray every day.

Page 10: PrayerSpark slide deck 09 13-16

Business Model

1. Setup fee for creating a branded app ($5,000 - $10,000)

a) Many institutions would like their own support app for clients and employees but are staggered by

the cost of developing a custom app ($50k - $150k).

b) PrayerSpark rebrands our white label stress reduction and spiritual support app for use at any

institution at an attractive price point.

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PrayerSpark’s revenue streams include the following:

2. Monthly subscription fee per user ($4.99 - $14.99 / mo)

a) PrayerSpark creates individual seats for each user of the app.

b) Institutions pay a recurring monthly fee for each user (member, client or employee).

3. PrayerSpark becomes a marketplace for curated spirituality and wellness products.

a) Product revenue from PrayerSpark brand (aromatherapy, yoga classes, wellness vacations).

b) Advertising revenue from third parties to access PrayerSpark users.

Page 11: PrayerSpark slide deck 09 13-16

Financials

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Current funding: 1st Angel: $10,000: Valuation of $2 Million 2nd Angel: $70,000: Valuation of $6 Million

Current raise: $1.2 million @ $8 million valuation .

Current fixed burn rate, without salary: $1000 per month

Projected minimum burn rate, with salaries: Based on industry standard

Projected minimum growth surplus: Variable

Need for next raise: Salaries for technology and marketing employees.

Business Model: $10,000 branding fee, with $9.99 to $14.99 / month / user, paid by clinic

Consumer Model: $4.99 / month, paid by user

Page 12: PrayerSpark slide deck 09 13-16

Competition

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There is NO direct competition. There is no INTERFAITH site for prayer requests.

Crowdsource Christian prayers from other layman users. Single religious denomination. No spiritual authority. No revenue model.

Geolocation service to find Christian churches in your area. Single religious denomination. No virtual community. No prayer requests. No revenue model.

Random repository of spiritual news and information. No prayer requests. No spiritual authority. No revenue model.

PERSONALIZED prayer requests for yourself and loved ones, performed by REAL spiritual leaders from ANY spiritual practice, with strong LOVE BRANDING, and a ROBUST REVENUE model that GIVES BACK MORE than most non-profit charities.

Page 13: PrayerSpark slide deck 09 13-16

Team

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Michael Feder Founder & CEO

Daniel Saurborn, MD Co-Founder & Chief Wellness Officer

Michael Feder is a creative executive with extensive start-up experience. Born in New York City, Michael earned his undergraduate degree at Clark University (Worcester, MA) where he was a University Scholar. A serious collegiate athlete, Michael completed the 1982 Ironman World Triathlon in Hawaii, as well as the Boston Marathon. He went to Law School at Tulane University, where he was an International Moot Court Competition Finalist and then finished his education at Emory University’s Goizueta Business School where he was an MBA Fellow and Dietz Scholar. Michael worked with Isaac Tigrett (founder of Hard Rock Café and House of Blues) on key initiatives , serving as acting COO of Mr. Tigrett’s global Spirit Channel launch. Michael co-founded Fame Farm LLC, a strategic marketing, branding and licensing firm.

For over a decade, Dr. Saurborn has been a pioneer of modern medicine, leveraging the power of the internet to bring better healthcare to disadvantaged patients in remote areas and all corners of the world. In 2004, he was a founding physician of Virtual Radiologic Corporation, which became the largest telemedicine provider in the world, currently valued at $500M. He is also the creator of MyQuitTime, a successful mobile app centered on nicotine addiction, with over 50,000 downloads and the highest rating in 3 app stores. Dr. Saurborn received his advanced medical training at Harvard Medical School and the Hospital of the University of Pennsylvania, where he published extensively and received numerous awards. He was 3 time winner of the Harvard Medical School Teaching Award, and the prestigious Pendergrass Award for Medical Education at the University of Pennsylvania. He graduated from Duke University with a focus on the Premedical Sciences, English Composition and Biomedical Engineering.

prayerspark.com/about#team

Christina Aldan is a highly successful media maven, with a decade of experience in the digital advertising realm. She is regarded for her advanced skills in web design, social media and creative content for small and micro businesses. In addition to operating her own digital advertising business, Christina also teaches a broad spectrum of courses, ranging from utilizing the full potential of a personal computer and applications to building web pages and social media campaigns. Christina is constantly in demand as a public speaker by corporations, small businesses and specialty groups. She has been invited to present various aspects of her expertise at such prestigious events as: TEDxFremontEastWomen, CataylstCreativ, The AT&T DevSummit, Geek Girl Conference, Bloomberg Radio, and several live local news shows. She also makes time to serve local community organizations.

Christina Aldan Chief Marketing Officer

Page 14: PrayerSpark slide deck 09 13-16

Team

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(cont.)

Frank Kaufmann, Ph.D Senior Vice President,

Director of Spiritual Leaders

Justin Holman Chief Technical Officer

Mark Genest Creative

Dr. Frank Kaufmann’s background includes stints as Director of the Inter Religious Federation for World Peace, Editor in Chief of New World Encyclopedia, and President of the Values in Knowledge Foundation. Partners in this work have included major international religious figures, including His Holiness the Dalai Lama, Greek Orthodox Patriarch (Dimitrios), Pope Shenuda of Cairo, Grand Muftis of Syria, Yemen, Israel and Gaza, Chief Rabbis, Protestant and Catholic leaders in Europe, and major international figures from Buddhism, Hinduism and other world traditions.

Justin Holman is an expert in iOS

application development, full stack

development, and project management..

He brings over 20 years or professional

experience to the team. Justin’s passion

for mobile apps extends to not only

creating a clean code base, but a well

designed user interface and a

phenomenal user experience. Justin has

developed many web and desktop

applications over the years. Currently he

is focusing on iOS development utilizing

Swift as well as the .Net stack for web

based applications.

When Justin is not writing or reading

about code and technology, he enjoys

spending time with his son.

Mark brings 17 years experience in architecture, industrial design, graphic design, web design and fine art, completing degrees in industrial design and sculpture at the University of Alberta and Kent Institute of Art and Design, Canturbury, UK, and architecture at Dalhousie University. He has won academic and professional awards for his contributions as a designer.

prayerspark.com/about#team

Page 15: PrayerSpark slide deck 09 13-16

Advisory Board

Isaac Tigrett Brand Ambassador

Laine Campbell Database Expert

Jason Ray Technology

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Michael J. Kuhar, PhD Brain Scientist

Andrea Hershatter Millennial Expert

Susan Cooney Technology

George Parnell Lead Counsel

prayerspark.com/about#advisory