settle now executive summary final 2016

4
CONFIDENTIAL EXECUTIVE SUMMARY Financing History To-Date: Founders/Friends/Family - $987K Currently Seeking: $3M Private Place- ment Revenues (Projected) FY 2016: $2,700,000 FY 2017: $5,250,000 FY 2018: $10,200,000 FY 2019: $16,700,000 FY 2020: $24,800,000 Customers/Prospects Vertical Industry (Primary Focus) Consumers Courts/Attorneys/Law Firms Potential Partners State/Local Courts Government Agencies Vertical Industry Service Providers Large Law Firms Competitors Modria Virtual Courthouse Smart Settle Arbitration Resolution Services Technology Partners Microsoft Cisco Citrix Company Overview The primary objective of ResolvNow and its fully-owned technology platform, subsidiary, Settle-Now™, is to bring about transformative innovation to the Alternative Dispute Resolu- tion industry by providing an on-demand service - similar to what Uber.comoffers in the transportation marketplace. Settle-Nowis a combination methodology and a technology platform for customers and businesses to resolve all types of disputes - easily, securely and inexpensively, in advance of, or during, litigation. It is an on-demand and mobility-enabled cloud technology platform (SaaS or PaaS). We expect the platform, methodology, and brand will gain widespread ac- ceptance by consumers, businesses, legal professionals, mediators, and arbitrators practic- ing in the dispute resolution industry. Market Opportunity The current President of the Florida Bar Association, Ramón A. Abadin, says of the Legal Marketplace today: We have to accept that we are no longer a monopoly. We have to accept that we are now part of a legal marketplace. We have to welcome others into our marketplace. We have to work with, not against, businesses who give people -- our customers, our clients – accessible and affordable and convenient solutions to their legal problems. In order for us to take advantage of the boundless opportunities, we have to changeImagine if lawyers could work more closely with legal innovators who already provide accessible, convenient, cost- effective legal services for clients and make our practices more profitable, while still maintain- ing the core principles of professionalism.Imagine a future where litigants or those who require an alternative to the legal system to settle their conflict could have access to an on-demand, low cost system with sophisticated tools, expert professionals, and state of the art processes to resolve their dispute from their connected device 24/7? The Legal System is closed for the majority of the population, according to Greg Coleman, past President of the Florida Bar: The real problem in this country is the working middle class, the 60% of the people that need access to the courts butcant afford a lawyer—even a lawyer at $100 an hour. So they navigate the court system themselves—a system that is not designed for a person who is not a lawyer to navigate. We need to come up with some access programs that address the population that cannot afford lawyers but still needs access to our courts. Lawyers are going to have to adapt. There is no question that technology is going to make access potentially easier.What if this solution presented an enticing opportunity to invest in an emerging technology which had the potential to efficiently disrupt, reshape, and service the $400B legal services industry? Estimates are that greater than 60% of the population is economically ex- cluded from participating in the legal system...and our initial goal is simple - to capture 2- 3% of this significant market. Ties to the Traditional Market Services Conflict is unavoidable. Some conflicts cannot be resolved among the participants without outside intervention. Traditionally, the courthouse has been the last resort for such conflicts. Rising cost, complexity and delays in litigation have given rise to alternatives. The most important are arbitration, which is a streamlined private court-like process, and mediation, which is negotiation facilitated by a third party. These pro- cesses are referred to as alternative dispute resolution (“ADR”). Because people encounter them only rarely, they are not well understood nor do people understand where to engage and purchase such services. Mediation/Arbitration clauses are common in today s contracts, but are confusing to consumers. Technology can bring new efficiencies to ADR and all forms of dispute resolution. Settle-Nowis an ADR platform that tailors the process to the needs and desires of the disputants, resulting in faster outcomes with dramatically lower cost. Where the amount in dispute is below $100,000, Settle-Nowprovides the most efficient way to achieve a fair outcome.

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Page 1: Settle now executive summary final 2016

CONFIDENTIAL EXECUTIVE SUMMARY

Financing History

To-Date: Founders/Friends/Family -

$987K

Currently Seeking: $3M Private Place-

ment

Revenues (Projected)

FY 2016: $2,700,000

FY 2017: $5,250,000

FY 2018: $10,200,000

FY 2019: $16,700,000

FY 2020: $24,800,000

Customers/Prospects

Vertical Industry (Primary Focus)

Consumers

Courts/Attorneys/Law Firms

Potential Partners

State/Local Courts

Government Agencies

Vertical Industry Service Providers

Large Law Firms

Competitors

Modria

Virtual Courthouse

Smart Settle

Arbitration Resolution Services

Technology Partners

Microsoft

Cisco

Citrix

Company Overview

The primary objective of ResolvNow and its fully-owned technology platform, subsidiary,

Settle-Now™, is to bring about transformative innovation to the Alternative Dispute Resolu-

tion industry by providing an on-demand service - similar to what “Uber.com” offers in the

transportation marketplace.

Settle-Now™ is a combination methodology and a technology platform for customers and

businesses to resolve all types of disputes - easily, securely and inexpensively, in advance

of, or during, litigation. It is an on-demand and mobility-enabled cloud technology platform

(SaaS or PaaS). We expect the platform, methodology, and brand will gain widespread ac-

ceptance by consumers, businesses, legal professionals, mediators, and arbitrators practic-

ing in the dispute resolution industry.

Market Opportunity The current President of the Florida Bar Association, Ramón A. Abadin, says of the Legal

Marketplace today: “We have to accept that we are no longer a monopoly. We have to accept

that we are now part of a legal marketplace. We have to welcome others into our marketplace.

We have to work with, not against, businesses who give people -- our customers, our clients –

accessible and affordable and convenient solutions to their legal problems. In order for us to

take advantage of the boundless opportunities, we have to change…Imagine if lawyers could

work more closely with legal innovators who already provide accessible, convenient, cost-

effective legal services for clients and make our practices more profitable, while still maintain-

ing the core principles of professionalism.”

Imagine a future where litigants or those who require an alternative to the legal system to

settle their conflict could have access to an on-demand, low cost system with sophisticated

tools, expert professionals, and state of the art processes to resolve their dispute from their

connected device 24/7?

The Legal System is closed for the majority of the population, according to Greg Coleman,

past President of the Florida Bar: “The real problem in this country is the working middle

class, the 60% of the people that need access to the courts but…can’t afford a lawyer—even a

lawyer at $100 an hour. So they navigate the court system themselves—a system that is not

designed for a person who is not a lawyer to navigate. We need to come up with some access

programs that address the population that cannot afford lawyers but still needs access to our

courts. Lawyers are going to have to adapt. There is no question that technology is going to

make access potentially easier.”

What if this solution presented an enticing opportunity to invest in an emerging technology

which had the potential to efficiently disrupt, reshape, and service the $400B legal services

industry? Estimates are that greater than 60% of the population is economically ex-

cluded from participating in the legal system...and our initial goal is simple - to capture 2-

3% of this significant market.

Ties to the Traditional Market Services

Conflict is unavoidable. Some conflicts cannot be resolved among the participants without outside intervention. Traditionally, the courthouse

has been the last resort for such conflicts. Rising cost, complexity and delays in litigation have given rise to alternatives. The most important

are arbitration, which is a streamlined private court-like process, and mediation, which is negotiation facilitated by a third party. These pro-

cesses are referred to as alternative dispute resolution (“ADR”). Because people encounter them only rarely, they are not well understood

nor do people understand where to engage and purchase such services. Mediation/Arbitration clauses are common in today’s contracts,

but are confusing to consumers.

Technology can bring new efficiencies to ADR and all forms of dispute resolution. Settle-Now™ is an ADR platform that tailors the process

to the needs and desires of the disputants, resulting in faster outcomes with dramatically lower cost. Where the amount in dispute is below

$100,000, Settle-Now™ provides the most efficient way to achieve a fair outcome.

Page 2: Settle now executive summary final 2016

Why do we believe the time is now for this technology and Settle-Now™?

We believe we are in a high opportunity phase of the technology adoption cycle, and quite ready for immediate traction. Here ’s why:

In this global economy, virtually endless types of conflict are emerging - many of which cross state, federal, and international ju-

risdictional boundaries. This provides the opportunity to use technology to increase reach, provide simplicity, and reduce costs for

services.

On-Demand and Mobile Technology is hot, it is reinventing delivery of professional services in most industries. SMART

TV applets are growing equally fast. Traditional markets like Legal and Medical are seeing new emerging technologies

and services daily. The Settle-Now platform is a perfect fit for the Legal and Mediation/Arbitration marketplace!

For almost a decade eBay/PayPal has used online dispute resolution technology to electronically resolve disputes between buy-

ers and sellers in their marketplace. They claim to resolve more than 60 million disputes annually, and 90% without any human

intervention.

The current and previous Presidents of the Florida Bar have stated positions that technology and new business models must be

embraced in order to adequately serve the public more economically (the majority of citizens are marginalized out of the system).

Courts are under increased pressure to reduce costs and provide high availability customer service. The traditional services of

law firms are under pressure to reduced costs as well as face increased consumer expectations around technology.

Rather than being an alternative to the Legal system, Settle-Now™ will enhance Attorney’s ability to serve their clients - and pro-

vide an opportunity to serve clients that may not have previously been economically possible.

Our B2B, B2B2C and Legal Clients can reduce risk to corporate reputations (mediation is confidential) and reduce exposure with

new mediation/arbitration clauses. Both the company and their customers can reduce costs and rapidly resolve all disputes with-

out the requirement and cost of litigation.

Millennials should further drive adoption of on-demand models and the convenience of virtual and blended services.

The European Union adopted new legislation (effective 01/16) requiring an Online Dispute Resolution solution for issues with e-

commerce transactions.

This industry has been in the innovation phase for the last decade. In 2015 we saw many industry periodicals - including leading

business and legal publications - citing the potential of this market. We believe 2016 is going to be the year this emerging tech-

nology gains traction. We expect to be the clear industry leader by year’s end!

How does Settle-Now™ work?

Settle-Now™ is an on-demand tool available through a secure web portal requiring no training. Users register the dispute, select the

process they prefer, choose the level of outside intervention and associated plan, and then start working on resolution. If the selected

plan does not provide the needed facilitation / mediation time, the user may select a level of intervention that provides more profes-

sional hours of service. Settle-Now™ may be accessed by a party or attorney seeking to avoid litigation, or a case may be brought

into Settle-Now™ after court proceedings have started. (See our Market-Entry Level Pricing below, from $250 to $2500).

Settle-Now™ can be used in industry-specific situations and in one-off disputes. It can be used to avoid litigation or the parties may

select Settle-Now™ after litigation has begun. It can be mandated by contract or court ruling. Settle-Now™ does not seek to supplant

courts, but provides an option that individuals, businesses, attorneys or judges may invoke where it is best-suited to a case. For the

small percentage of cases that are not resolved, Settle-Now™ is still efficient in that each side will gain important pre-litigation infor-

mation about the dispute from the process and thereby be able to reduce litigation expense. It is a no-lose proposition!

Page 3: Settle now executive summary final 2016

Our Differentiation

Settle-Now™ has superior technology and provides a non-confrontational, user-friendly platform to resolve virtually all types of dis-

putes while saving time and money. Settle-Now™ is a cloud-based platform that combines facilitated negotiation, case management,

and video conferencing that leverages industry standard components of WebEx™, Skype™, and Go-to-Meeting™.

Our strong technology and process advantages - we are the first to

implement and leverage a nationally recognized Emotional Intelli-

gence Assessment EQ-I 2.0 as a tool for the

disputing parties to measure, quantify, ex-

plain and defuse the emotional aspects of

the dispute (provided as an option).

Settle-Now™ can accommodate a variety of different approaches to

resolving a dispute: direct or facilitated negotiation; on-line communi-

cations, videoconferencing or face-to-face meetings. It works well for

local disputes - but is especially efficient for disputes between geo-

graphically distant parties and their attorneys.

We have one of the industry’s top algorithmic settlement calculators, and a dynamic database to

help in the process of Electronic Negotiation. Industry research and results clearly show by lever-

aging eNegotiation both parties can expect to receive 10 to 20% more than they would have likely

settled for in traditional face-to-face negotiation or litigation.

Settle-Now™ 2.0 will include these additional Legal Industry enticing features:

ResolvCommunity™ is a design and build service portal where lawyers, mediators, arbitrators,

financial advisors and counselors can register and list their professional qualifications, resume, and

services to build their business network. There they can be selected by consumers or attorneys,

feeding the Settle-Now™ mediator or arbitrator selection process.

ResolvTalk.com™ – a consumer can have access to legal counsel at a reduced fixed rate, via vid-

eo conferencing, phone, or email. (Our unique strategy is to establish a reciprocal relationship with

the legal community).

Purpose of this Proposed Investment

We have invested 3+ years and nearly $1M since early 2012 to get to this traction point. The new $3M investment is directed at these

objectives:

1. Fund Revenue Generating Pilot Projects – We have identified and contracted pilot projects in Condo Association, Consumer Mar-

kets, Automotive Industry, Human Resources, and the Legal Industry via Large Law Firms or the State Courts. The goal for 2016 is to

have 2,500+cases in the system successfully processed.

2. Develop Settle-Now™ 2.0 – 1) Mobility Applet and to achieve true on-demand status, applet will be free to drive user base. This

includes a SMART TV applet for Samsung, Apple, Google & others 2) Redesign User Interface with (Consumers, Vertical Industries,

and Courts / Law Firms) 3) Enable Legal Industry Enticing Features 4) On-Demand (24/7/365) - often referred to as Uber-like. 5)

Add Spanish and Portuguese language versions to launch in Latin America.

3. Launch a Marketing Campaign—to establish the Settle-Now™ brand, we have a significant opportunity to leverage Judge Alex Fer-

rer as our product spokesperson. He is a former Miami Circuit Court Judge, Judge on nationally syndicated television show “Judge

Alex,” a legal commentator on Fox News, CNN, HLN and MSNBC, as well as other national networks, faculty at the Florida Judicial

College. Curranty a member of the firm of Morgan & Morgan. Additionally, we have assembled a team of top marketing/brand indus-

try consultants who have won Emmy’s and other national advertising awards in a very strategic brand development campaigns.

4. Launch a Sales and Lobbying Campaign— following the initial success of our pilot projects, launch a national sales campaign into

target Verticals, launch an Alliance Partner Program, and begin Lobbying activities into the States of Florida, California and Texas.

5. Intellectual Property Development, Patents, and Trademarks—pursue patent and trademarks and continue to innovate and devel-

op new forms of intellectual property and technology.

Open completion of these five steps, we feel confident we will be the recognized industry leader and be in position for a $15-

$20M Round of funding in early 2017.

Page 4: Settle now executive summary final 2016

Operations Headquarters: 970 Lake Carillon Dr. Suite 300 St. Petersburg, Florida 33716

Corporate Headquarters: 1999 Bascom Avenue, Suite 700 Campbell, California 95008

Phone: 855.417.3765 Email: [email protected] Visit us on the web at www.settle-now.com or www.resolvnow.com

Industries Leading Management and Advisory Team

David W. Puckett, CEO & Founder – a consulting Practice Manager at KPMG / Bearing Point with 26 years’ global enterprise tech-

nology consulting. Proven Serial Entrepreneur, two companies sold to public companies.

Vikram Mehta, Chief Technology Officer – 21 years’ business management and IT strategy experience managing startups and

large projects at global companies.

Joseph Cuenco, Vice President of Operations – 25 years’ global operations experience in telecommunications, manufacturing,

information technology, and financial services.

Richard London, Chief Legal Officer or VP of Legal Services - 30+ years ’ of legal industry experience, admitted for practice in

Texas. Experience includes federal court, including the United States Supreme Court. Certified Mediator in Florida and Texas.

Colin McMichen, Attorney and Consultant - As a litigator, he has attended countless mediations, arbitrations, and negotiations.

Colin is admitted to practice law in Florida and Alabama.

Stanley Zamor, Vice-President of Mediation Services – 11 years’ as Florida Supreme Court Certified Mediator, Qualified Arbitrator

and Circuit Civil Mediation Trainer.

Soriana Constantinescu – Strategic Advisor & E.U. Program Manager – 17 years’ as Business Consultant and Mediator, CEDR

(UK) and (RO) Accredited Mediator.

Margaret Bennett, Lead Business Analyst – 15 years’ conflict resolution experience and IT industry practice.

Board of Directors:

John Delk, Senior Technology Industry Executive for top companies including Micro Focus, Net IQ, Novell and Bearing Point.

John Hindman, former C-Level of Publicly Traded Technology Services Company.

Wally Copeland, retired CPA with prior SEC practice focus.

Dr. Brian Polkinghorn, Professor Salisbury University and Nationally Recognized Dispute Resolution Professional.

Joe Bourdow, Former President of Valpak one of Tampa-Bays largest private companies and founding partner of Premier Franchise Advi-

sors, LLC.

Consultants and Advisors:

Michael J. Leech, attorney/mediator who is licensed to practice law in Illinois and Pennsylvania, founder of Talk -Sense.com.

Dr. Ted Becker, (Co-Founder) Professor, Auburn University with over 50 years legal and ADR Industry experience.

Dr. Neil Katz, Professor Syracuse and Nova Southeastern Universities teaching Conflict Resolution, ADR Industry Practitioner.

Full resumes are available at: http://www.resolvnow.com/leadership.html.

Offering and Potential Exit Strategies

Offering:

We are seeking up to $3 million - in one of the following two options, or in another form to be negotiated. We would also consider a

substantial Legal or Technology industry active investor that compliments our objectives:

1) Our preferred option would be convertible loan options at a very favorable interest rate for terms up to 24 months. The size and

terms of these convertible notes, or collateralized loan obligation (CLO) is a security consisting of a pool of loans organized by

maturity and risk. They could be staged on actual result draws. The notes can vary in size ($100K minimum), maturity, interest

rates and terms based on negotiation.

2) A second approach would be a secondary offering up to 300,000 new shares (Class B) at $10.00 per share for a total private

placement evaluation of $3,000,000.00, which represents 30% of stock or 30,000 of the original 100,000 shares of preferred

common stock issued upon founding and our Florida “C” Corporation (2013), original Delaware (2012).

Potential Exit Strategies:

Option 1 - Direct Early Stage Sale - direct early stage sale of our dispute resolution engine, Settle-Now™ to a Tier 1 Internet Service

Provider partner. There is considerable marketing related costs in building a consumer brand for Settle-Now™.

Option 2 - Initial Public Offering – A second option we explored as an exit strategy was continued growth through an initial public

offering following our “A” round of financing. This option offers a tremendous upside for early investors.

Successful execution of our plan will establish us as the industry leader. This will open substantial opportunities for acquisition and

investment, similar to many successful emerging technology companies. Lastly, as 2/3’s of the offering is marketing related costs, if

the investor has media /marketing connections or media discounts, we could be creative in approach.