1.1 Order Snapp Deal Summary 03 PDF

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ORDERSNAPP, INC. Serve Smarter INTRODUCTION Hegemon Capital presents this confidential information summary with respect to its investment in OrderSnapp, Inc., a company that provides online ordering solutions (OOS) and a cloud based point-of-sale (POS) platform with an integrated suite of features and technological tools for the restaurant industry. OrderSnapp’s unique ability to provide combined OOS and POS functionalities to its customers differentiates its services from competitors in the industry. In August 2017, Hegemon invested $750,000 at a $4 million valuation in OrderSnapp’s Series A Preferred Stock. Twelve months later, Hegemon invested an additional $225,000 in the company as part of the same Series A financing round. In February 2019, Hegemon together with a new investor invested an additional $1 million as part of the Series A-2 round at an $8 million valuation. On a fully diluted basis, Hegemon currently owns 22.8% of the company. OrderSnapp is expecting to raise an additional $10 million at a $20 million pre-money valuation in its Series B financing round by the end of 2019. This Series B capital raise will allow the company to 1) hire a full management team 2) roll out its new full-service restaurant products 3) ramp up sales and marketing to amass market share and 4) enter new verticals, such as liquor stores and hotels. COMPANY BACKGROUND OrderSnapp Inc. is a Rochester, NY-based company co-founded in 2015 by Ronald Resnick and Robert Trimaldi. The partners recognized that the service structure provided by companies like Grubhub, Uber Eats, and Eat24 is not ideal for many small restaurants. The commissions that these companies collect are often a significant portion of each sale, making takeout and delivery services unprofitable for small restaurants. In addition, those 3rd party platforms are designed in such a way as to cross-promote restaurants with their nearby competitors. Ronald and Robert developed a platform to convert restaurants from commissioned based service structures to direct online ordering from the restaurant site. As part of the evolution of OrderSnapp’s features, it developed a cutting-edge cloud-based POS platform. This POS capability is now OrderSnapp’s flagship product feature.

ORDERSNAPP PRODUCTS AND SERVICES OrderSnapp’s Point-of-Sale platform provides a wide range of services including: integrated OOS, custom website and online ordering, custom mobile apps, loyalty programs, local business search engine optimization, delivery management, universal hardware, employee management, in-store and external kiosk ordering, drive-thru monitoring, merchant servicing, and cost-effective payment processing. The A-2 financing will allow OrderSnapp to complete its full service restaurant offering, which includes reservation capabilities, waitlist management and

This confidential summary is for information and discussion purposes, only. It does not constitute a representation or offering of any kind and it may not be relied upon for any purpose.

texting notification, customer and server management via table layout, detailed waitstaff tipping and reporting and the ability for customers to split checks and pay in their seats. OrderSnapp’s POS system generates revenue through monthly subscription payments ($129), processing payments (revenue amount subject to partnership terms and order volume), hardware costs, and one-time setup fees ($299). The shift from legacy systems to cloud-based platforms has attracted partnership interest from major payment processors looking to retain and grow their market share. OrderSnapp has already established these partnerships with Heartland Payment Systems, Payroc, First Data, and PNC bank. The company plans to triple these relationships over the next 36 months, expanding OrderSnapp’s national presence and increasing its profit through revenue sharing programs.

MARKET ASSESSMENT In 2017, the restaurant industry had sales of $799 billion, and is projected to experience 4% annual growth. The industry can be broken down into three general categories – full-service, fast-food, and fast-casual. These categories represent 48.5%, 43.8%, and 7.7% of the market, respectively. As the industry continues to expand and evolve, restaurant operators are met with distinct business needs. These needs include credit card processing and competitive sales and customer management tools. Additionally, the POS industry is shifting from legacy solutions that require antiquated PC equipment, to far less expensive cloud-based platforms that provide flexible and integrated software, multiple order points, and online and mobile solutions. While the shift has already begun, it remains in its early stages. Few companies in the industry offer OrderSnapp’s combined OOS and POS platform features and “best-in-class” customer service. OrderSnapp’s biggest competitors in the “combined platform” space are Toast, Square, and Clover. OrderSnapp’s product, however, is more extensive, easier to use, and less expensive than all three. Full-service restaurants represent 48.5% of the restaurant industry, equating to about $397.5 billion of industry sales. OrderSnapp views this as an ideal target market for expansion. It estimates that full-service revenue sharing will be 5x more profitable than in fast-casual, the company’s current target market. The current capital raise will allow OrderSnapp to complete the development of its full-service product and penetrate this segment of the restaurant industry.

FUNDING SUMMARY OrderSnapp’s founders, Robert Trimaldi and Ronald Resnick, have each invested over $300,000 of personal funds to start and grow the company. Additionally, between August 2017 and February 2019, Hegemon injected $1,475,000 of growth capital which was allocated to product development, sales and marketing virtually eliminating previously existing technology risk. At its current revenue and expense trajectory, OrderSnapp is projected to begin generating a profit in the second quarter of 2020, reaching $2,500,000 in profit by the end of that year. This accelerated growth is expected to continue beyond 2020, substantially reducing the risk that OrderSnapp will need to raise additional capital. Following a Series B round, Hegemon expects that its Series A investment and its additional $500,000 investment in the current $1 million Series A-2 equity raise at an $8 million pre-money valuation would yield a minimum IRR of 31.5% and 3.1x equity multiple assuming an $40 million exit in July 2022. Return outcomes for the various tranches at different exit values are provided below: HEGEMON CAPITAL, INC. This confidential summary is for information and discussion purposes, only. It does not constitute a representation or offering of any kind and it may not be relied upon for any purpose.

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Exit Date Exit Value Series B IRR

7/31/2022 40,000,000 38.4%

$

2.2x

Series B Cas h on Cas h Return Series A-2 IRR Series A-2 Cash on Cash Return

40.9% 3.2x

Hegemon IRR Hegemon Cash on Cash Return

31.5% 3.1x 7/31/2022

Exit Date $

Exit Value Series B IRR Series B Cas h on Cas h Return

50,000,000 47.3% 2.6x 50.2% 4.0x

Series A-2 IRR Series A-2 Cash on Cash Return Hegemon IRR

38.4% 3.9x

Hegemon Cash on Cash Return Exit Date Exit Value Series Series Series Series

7/31/2022 60,000,000

$

55.5% 2.9x

B IRR B Cas h on Cas h Return A-2 IRR A-2 Cash on Cash Return

58.3% 4.8x 44.3% 4.7x

Hegemon IRR Hegemon Cash on Cash Return

FINANCIAL SUMMARY OrderSnapp generated $1 million in revenue in FY18 and this is expected to increase to $1.8 million in 2019 with a store count of 960 and monthly recurring revenues of $250,000 by the end of the year. Accelerated revenue growth is expected to continue through 2021.

Millions

Pro Forma $32.84

$35 $30 $25

$18.79

$20 $15

$9.75

$10 $5 $0 -$5

$2.52

$1.83 -$0.40 2019

2020 TOTAL REVENUES

2021

NET PROFIT

Hegemon’s investment thesis is centered around OrderSnapp’s superior product, efficient use of capital and the growth opportunities ahead of the company. Management’s strategy to achieve the projected financials above is to expand its partnerships with payment processors in conjunction with hiring a direct sales team to penetrate the full-service restaurant market which will drive revenues while keeping customer acquisition costs to a minimum. Furthermore, through HEGEMON CAPITAL, INC. This confidential summary is for information and discussion purposes, only. It does not constitute a representation or offering of any kind and it may not be relied upon for any purpose.

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OrderSnapp’s continued deepened relationships with Heartland, Payroc, First Data, PNC Bank and other payment processors, the company is becoming a natural acquisition target for these industry juggernauts which, consequently, will be the most likely exit for the shareholders. MANAGEMENT Ronald Resnick – Co-Founder and President Ronald Resnick is Co-Founder and President of OrderSnapp, and brings technology industry leadership, computer software expertise, executive management experience and fundraising to his role with the company. Resnick’s entrepreneurial background in leading high growth companies with a focus on customer success, forefronts OrderSnapp in assisting businesses to work smarter, make data driven decisions and create the best possible experience for their customers. Prior to founding OrderSnapp, Resnick co-founded and was the chief executive officer of Cumulus Computing, LLC, a computer technology company that specialized in developing web and mobile applications for Fortune 500 companies and entrepreneurs. Cumulus was one of the first U.S. based mobile app developers. Resnick was a professional media producer acting as president of Resnick Productions LLC, a premier professional sports promoter, producing many shows including events nationally televised on ESPN, ShowTime, and more. As a member of the Professional Boxing Promoters Association, Resnick created and developed web technologies that matched fighters to events. Earlier in his career, Resnick was founder of an automotive transmissions franchise group in Central and Western N.Y., acting as CEO and chief technical adviser to engineers specializing in computers over hydraulic systems. This company became one of the largest wholesale outlets for domestic, European and Asian remanufactured transmissions in the northeast. Robert Trimaldi – Co-Founder Robert Trimaldi is Co-Founder of Ordersnapp and is focused on sales and new business development for their national markets. With over 25 years’ experience in product sales, he applies strong expertise in data-driven sales and long-term strategic planning. Robert serves as Vice President of Sales for Compu-Mail Corporation where he led corporate business development and new client systems. In his first 5 years, Robert accounted for 65% of the firm’s total sales and helped grow the company with double digit growth for 15 consecutive years. He was involved in exploring new technology and business vertical opportunities. He managed multiple teams in IT, sales and customer ervice including market analysis studies and customer satisfaction measurement. Robert is a national leader in front end analytics, direct marketing and e-mail strategy, push message communications, fulfillment and back end response analysis. These strategies are designed to create positive return. Robert earned a Master of Business Administration University of Rochester Simon School of Business and a Bachelor of Science in Management concentrating on Marketing and Finance at St. John Fisher College.

HEGEMON CAPITAL, INC. This confidential summary is for information and discussion purposes, only. It does not constitute a representation or offering of any kind and it may not be relied upon for any purpose.

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