PowerPoint Presentation · The Athlete Book Solution. The Athlete Book’s SAAS platform is a...

Investor Presentation, Q2 2020

Ryan Drummond, CEOM: (347) 840-0138

E: [email protected]

$1.5MConvertible Note Raise

8% Interest | 24 Month Maturity $8M Cap | 20% Discount

DisclaimerThis memorandum is provided on a confidential basis solely for use bypersons who are eligible prospective investors in the offering and maynot be reproduced or used for any other purpose. Prospective investorsagree to return this memorandum to the company upon request.Investors should not construe the contents of this memorandum or anycommunication, whether written or oral, from the company,management, employees or agents, as legal, tax, accounting or otherexpert advice. Each investor must conduct and rely on its own evaluationof the company, this memorandum and the terms of the offering andeach investor should consult its own counsel, accountant, and otherprofessional advisors as to legal, tax, accounting, and related mattersconcerning its investment and its suitability. The manager has agreed tomake available to each potential investor or its representative theopportunity to ask questions of and receive answers from, the managerand any person acting on its behalf concerning the terms and conditionsof the offering of membership interests, and to obtain any information,to the extent they possess such information or can acquire it withoutunreasonable effort or expense, necessary to verify the accuracy of theinformation set forth herein. No offering literature or advertising in anyform shall be employed with respect to the offering of membershipinterests, except the information contained herein or authorized by themanager. No person has been authorized to make representations

except as set forth in the subscription agreement relating to the offeringor to give any information with respect to the membership interestsother than the information contained in this memorandum. Any and allliterature, other than this memorandum, received by any potentialofferee, whether or not at the behest of the company or the manager,shall be disregarded and shall have no force or effect. Thismemorandum does not constitute an offer to sell or a solicitation of anoffer to buy a security in any jurisdiction in which, or to any person towhom, it is unlawful to make such an offer or solicitation. Circular 230disclosure: to ensure compliance with internal revenue service circular230, prospective purchasers are hereby notified that the discussion oftax matters set forth in this memorandum was written to support thepromotion or marketing by the company of the transactions or mattersaddressed in this memorandum and was not intended or written to beused, and cannot be used by any prospective purchaser, for the purposeof avoiding tax-related penalties that may be imposed on the prospectivepurchaser under federal tax law. Each prospective purchaser shouldseek advice based on its particular circumstances from an independenttax advisor.

Private and Confidential 2

Private and Confidential

The Athlete-Employer Gap

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Student Athletes Need:• Increased exposure to jobs and entrepreneurship opportunities.

• Professional development despite limited time.

• Help understanding identity beyond being a “college athlete.

Communication and Matchmaking Gap

Employers Want:• An easy solution to hiring candidates with grit.

• Renewal source of culturally diverse talent

• Effective virtual recruiting solution,


The Athlete Book Solution

The Athlete Book’s SAAS platform is a professional development content marketplace that connects athletes to opportunities.

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1. Self Discovery

Athletes learn more about themselves and coaches learn more about their teams.

2. Explore and Compete

Athletes learn skills and explore career paths in a gamified environment.

3. Become a Leader

Athletes learn skills and create their own opportunities by contributing content to The Athlete Book.

4. Get Hired

Athletes are matched with employers upon graduation and begin careers.

A Transformational Experience



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1. Self Discovery

Trait Analysis: Through our 2-min personality assessments, we capture 150+ points of data to guide athletes towards meaningful career paths.

Better Student Data: The Athlete Book gives coaches better insights into their player’s personalities and directors better insights into their goals.

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2. Explore and Compete

Professional Development: The Athlete Book offers career development courses, webinars and live/virtual chats events.

Gamification: Team leaderboards capitalize on competitive nature of coaches and athletes within any given athletic department.


3. Become a Leader

Learning Management System: Includes a growing list of professional development courses. Offers course creators a new demographic in college athletics.

Monetization Opportunity for Athletes & Coaches: Flagship course teaches athletes how to create, promote, and grow their own sport business on The Athlete Book’s platform. Well positioned for Name, Image, Likeness rule changes.


4. Get Hired

Increased Opportunities: Small schools are often overlooked by large corporations. The Athlete Book helps level the playing field with access to Fortune 500 opportunities.

Leading Employers use The Athlete Book:

Tailored Job Listings: The Athlete Book’s job board lists entry-level openings that specifically capitalize on student-athlete traits.


IndependenceEach University has their own Ecosystem

Custom Course Content

Development fundraising & Sponsorships

Athlete Development Analytics

Internal competitions


University Target Market Size

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600,000Student-Athletes in the United StatesSource: National Collegiate Athletic Association et al, 2019,

$4,400Average Spend Per Undergrad Hire

Source: Society for Human Resource Management, 2017

The Market Potential is Significant:The graduation rate of the 600,000 student athletes in the US is 88%. 65% of those who graduate will directly enter the job market without pursuing a graduate degree, resulting in $377M+ in total US job

recruitment spend for undergraduates with each graduating class.

The Athlete Books expects to capture up to 12% of university athletic departments by 2024.


Pricing & Margins40% Net & 70% Gross

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Universities:

$5,698 annual • Team Assessment Playbook: $199/yr

• Career Assessment Playbook: $499/yr

• Event / Workshop Playbook: $5k/yr

Employers:

Set-Up Fee, High Volume Recruiting: $2,500Set-Up Fee, Low Volume Recruiting: $1,500

High Volume Monthly Recurring: $500/monthLow Volume Monthly Recruiting: $350/Month

Junior talent Placement Fee: $5,000

a-La-Carte:

Virtual Hiring Event: $3,000

Campaign: $1,500

Webinar: $845


Competitive Analysis

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University Centric

AthleteCentric

ProfessionalDevelopment

JobListings

TraitAssessments

(and other public job boards)

Gamification


Passed Milestones

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July 2019

$500k Capital Raise

August 2019

Signed Amazon

September 2019

JPMC Pilot Deal

November 2019

Pilot Deal withCrunch Fitness

November 2019

Reached 3,500 new athlete users

December 2019

Secured PilotWith Telsa


Coming Timeline

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Jan 2020

Secure Major Enterprise Deals from Amazon and JP Morgan Chase

July 2020

The Athlete Book Version 2.0 Goes Live

August 2020

Finalize Diversity Athlete Teach and Recruit Series

Jan 2021

Capture 40,000 Unique Athlete Users on TAB

Platform

Jan 2021

Introduce Athlete & Veteran Recruitment Programs in Preparation of cloning

Services for Vets

Dec 2021

Reach at Least $5 million in ARR


Leadership Team

Ryan DrummondFounder & CEO

- Talent acquisition industry insider.

- Former VP of campus recruiting and talent acquisition strategy at JPMorgan Chase

-Held leadership roles at various search and staffing firms.

-Former D1 Athlete - Captain

Daniela YoderCFO

- Experienced financial leader in several high-growth companies

- General Partner in Cherub Fund

- Former SVP at Valuation ResearchCorp.

Pete MooreSenior Advisor

- Advisor to the Health, Active, Lifestyle and Outdoor (“HALO”) sector.

- Founder of Integrity Square

- Investor in The Athlete Book

Ben HaferSoftware Engineer

-Experienced Full-Stack Engineer

-Maintained three separate enterprise web apps prior and has built out multiple APIs.

Liz GabariHead of User Engagement

- Seasoned recruiter and search strategist

- Email campaign specialist

- Experienced event planner


Influencer and Advisors


Sources and Uses

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Primary Uses:• Rollout TAB Version 2.0• Athletic Sponsorships• Onboarding Regional Sales Reps




Income Statement

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Income Statement 2019 2020 2021 2022 2023 2024# of E mployer Customers n/a 66 360 800 1,654 3,083# of University Teams * n/a 130 621 1,221 2,159 3,588Total Customers n/a 196 980 2,021 3,813 6,671

Revenue E mployer $10,449 $569,983 $2,997,369 $6,152,696 $11,696,686 $22,560,158University 0 231,162 1,518,932 3,213,735 5,056,606 8,312,982

Total Revenue $10,449 $801,145 $4,516,300 $9,366,431 $16,753,292 $30,873,140Cost of Revenue

E mployer - Hosting/onboarding/support 0 142,496 749,342 1,538,174 2,924,171 5,640,040University - Hosting/onboarding/support 0 46,232 303,786 642,747 1,011,321 1,662,596Web S ervice/Content 66,372 60,000 63,250 96,000 108,000 120,000

Total Cost of Revenue 66,372 248,728 1,116,378 2,276,921 4,043,493 7,422,636Gross Profit (55,923) 552,417 3,399,922 7,089,510 12,709,799 23,450,504Gross Margin -535.2% 69.0% 75.3% 75.7% 75.9% 76.0%

Operating E xpenses 211,729 1,017,387 2,418,191 3,545,132 5,682,335 9,007,078EBITDA ($267,651) ($464,970) $981,731 $3,544,378 $7,027,464 $14,443,426E BITDA Margin -2561.5% -58.0% 21.7% 37.8% 41.9% 46.8%* Based on 1,400 U.S . universities with a 15 teams per school on average.

Ryan DrummondM: (347) 840-0138


Appendix

mailto:[email protected]


Operating Expense Detail

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Operating Expenses 2019 2020 2021 2022 2023 2024RevenueTotal Revenue $10,449 $801,145 $4,516,300 $9,366,431 $16,753,292 $30,873,140

Operating ExpensesS alaries & Wages $60,000 $383,333 $936,250 $1,190,000 $1,808,359 $3,087,314S ales Commissions 0 140,084 321,271 355,440 851,877 1,037,606Contract Labor 0 84,528 93,920 93,920 93,920 93,920Taxes & Benefits 0 69,000 168,525 214,200 306,900 369,450Business Insurance 0 11,250 30,000 40,000 50,000 50,000Other (E mployee & Related) 0 8,011 45,163 93,664 167,533 308,731Marketing 32,620 105,800 497,830 983,443 1,721,779 3,151,989Travel & E ntertainment 25,354 31,075 83,400 226,950 115,200 133,200Rent & Utilities 0 24,300 32,400 32,400 36,000 75,600Traitify 0 60,000 95,000 132,500 270,000 322,500S ubscriptions 13,101 22,200 22,200 22,200 22,200 22,200Admin S upport 0 18,900 25,200 60,000 90,000 120,000Professional Fees 69,500 45,000 31,250 39,063 48,828 61,035General Office E xpenses 5,568 9,900 13,200 14,520 15,972 19,166Miscellaneous 5,586 4,006 22,582 46,832 83,766 154,366Total Operating Expense $211,729 $1,017,387 $2,418,191 $3,545,132 $5,682,335 $9,007,078 % of R evenue 2026.3% 127.0% 53.5% 37.8% 33.9% 29.2%

New CustomersTotal New Customers 196 786 1,039 1,791 2,858Total Candidates 40,312

S ales Commissions $140,084 $321,271 $355,440 $851,877 $1,037,606Marketing 105,800 497,830 983,443 1,721,779 3,151,989Travel and E ntertainment 31,075 83,400 226,950 115,200 133,200S alaries and Wages (for sales only) 86,792 202,432 755,556 1,000,369 1,464,679 % salaries and wages for sales 22.6% 21.6% 63.5% 55.3% 47.4%Total S ales and Marketing $363,751 $1,104,934 $2,321,388 $3,689,225 $5,787,475

CAC ($) Clients $1,859 $1,406 $2,234 $2,059 $2,025CAC ($) Candidates $9.02


Balance Sheet

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Balance Sheet 2019 2020 2021 2022 2023 2024Assets

Current AssetsCash $193,324 $1,249,569 $1,842,724 $4,297,742 $9,216,662 $19,544,932Accounts Receivable 2,975 168,272 542,839 969,686 1,910,507 3,145,555Other Current Assets 0 8,414 27,142 48,484 95,525 157,278Total 196,299 1,426,255 2,412,705 5,315,912 11,222,694 22,847,765

Net F ixed Assets 0 568 1,075 1,523 1,910 2,238

Other Assets 0 5,048 16,285 29,091 57,315 94,367

Total Assets $196,299 $1,431,871 $2,430,065 $5,346,525 $11,281,919 $22,944,369

Liabilities & Equity

Current LiabilitiesAccounts Payable $2,000 $154,893 $257,105 $352,931 $637,004 $874,701Credit Cards Payable 32,785 77,447 128,553 176,466 318,502 437,350Other Current Liabilities 55,540 55,540 55,540 55,540 55,540 55,540Total 90,325 287,880 441,197 584,936 1,011,045 1,367,591

Total Liabilities 90,325 287,880 441,197 584,936 1,011,045 1,367,591

E quityPaid-In Capital 443,964 1,943,964 1,943,964 1,943,964 1,943,964 1,943,964Accumulated Retained E arnings (337,989) (799,973) 44,904 2,817,625 8,326,910 19,632,814Total E quity 105,975 1,143,991 1,988,868 4,761,589 10,270,874 21,576,778

Total Liabilities & Equity $196,299 $1,431,871 $2,430,065 $5,346,525 $11,281,919 $22,944,369


Statement of Cash Flows

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Cash Flows 2019 2020 2021 2022 2023 2024Operating Cash Flows

Net Income ($274,271) ($461,983) $844,876 $2,772,722 $5,499,912 $11,305,876Depreciation 0 33 93 153 213 273Changes to:Accounts Receivable (3,225) (165,297) (374,567) (426,847) (940,820) (1,235,049)Accounts Payable 13,215 152,893 102,212 95,826 284,073 237,697Other Current Assets 0 (8,414) (18,728) (21,342) (47,041) (61,752)Other Assets 0 (5,048) (11,237) (12,805) (28,225) (37,051)Other Current Liabilities 5,540 0 0 0 0 0Credit Cards Payable 8,087 44,662 51,106 47,913 142,036 118,849Total (250,655) (443,155) 593,755 2,455,618 4,910,148 10,328,841

Investing Cash Flows

Capital E xpenditures 0 (600) (600) (600) (600) (600)Total 0 (600) (600) (600) (600) (600)

Financing Cash Flows

Paid-In Capital 466,291 1,500,000 0 0 0 0Total 466,291 1,500,000 0 0 0 0Total Change in Cash $215,636 $1,056,245 $593,155 $2,455,018 $4,909,548 $10,328,241Beginning Cash Balance 18,254 233,890 1,290,135 1,883,290 4,338,308 9,247,855Ending Cash Balance $233,890 $1,290,135 $1,883,290 $4,338,308 $9,247,855 $19,576,097

Product Overview

Ryan Drummond, CEOM: (347) 840-0138





Building a MarketplaceAmong Employers and Athletes

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Athlete Courses

Athlete Job Board


Gamification of Professional Development

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Athlete Candidate Preview Cared

Athlete Team Leaderboard


Gamification of Professional Development

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Athlete Candidate Preview Cared

Athlete Team Leaderboard


Building a MarketplaceAmong Employers and Athletes

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Virtual Recruiting Events

Team Career Discovery Assessments Identity Workshops

Employer Webinars

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