Veditz

Exemplars Inc. was incorporated in Delaware in September 2015. Our mission is Connecting, Educating and Empowering the World's Deaf Community. We build products that support our mission by creating value for Deaf people and hearing people interested in Deaf causes and sign languages.

Our offering Veditz (veditz.org), is an education marketplace and platform focused on improving education attainment for the 70 million global Deaf community.

- For hearing parents of a Deaf child this means helping the parent learn their country’s main sign language and Deaf culture, right in their home or office via a computer, smartphone or tablet with the education tailored to them, from sign language educators around the world.

- For Deaf high school and college students, it means improving access to tutoring in math, science and literature by giving Deaf students and their schools, access to tutors serving the Deaf community directly to the student right on a computer, smartphone or tablet in the classroom or where the student is studying, with the tutoring delivered in sign language.

- For the daily lives of Deaf people, and any organization in need to find an interpreter for the Deaf it means having direct access to interpreters via a computer, smartphone or tablet, and not just those in their city; not having to go through an agency; only paying for the time used and not having to pay the normal 2-hour minimum; and also having on the spot interpreting.

- For the millions of people around the world learning a sign language it means peer-to-peer practice, the best way to master a sign language, and access to other learners equally eager to meet-up online and practice the same sign language via a computer, smartphone or tablet.

- And for the entire Deaf community it means access to full courses designed and delivered by teachers of the Deaf or people who know sign language, on a range of subjects, from sign languages; to K-12 subjects, college math, science, English; to career topics; hobby subject, and more, delivered in the users Sign Language on a computer, smartphone or tablet.

The company began operations in September 2015 and has been in a pre-revenue stage focused on designing, engineering, developing and testing our platform. The Company has created what it believes to be a valuable and tangible asset in the innovative software platform it has engineered and developed and the Board after consulting with Company advisors established a fair market value we believe is reasonable. Actual value of the software could differ materially from those estimates.

The Company was recognized for this technology innovation and named as one of 10 Under the Ed Radar start-ups for 2015, by EDUCAUSE, the association of university CIOs and CTOs in the USA.

The company expects to generate revenue in 2016 and in future years by collecting fees to host courses, tutoring and interpreting services conducted by independent teachers and interpreters who will use our platform.

Customers are required to provide an electronic payment card prior to using any paid services, and we automatically collect our fee as a percentage of the charges to the customer before the provider of the service receives their payment from the user. We book fees in the month we collect them.

As an early-stage company, we have experienced losses thus far in our operating history. Given the early stage of the Company our model is not yet proven and has high risk. At the core the Company has a social impact mission to serve the global good for the worldwide Deaf community as quickly as possible therefore we anticipate the Company will continue to experience losses at least through March 2018 in order to meet our growth objectives to serve Deaf people everywhere.

We launched our live Beta in April 2016 and in April we had 2,627 Active Users of which 547 became Subscribers. We expect to continue to grow our user base and convert 2% to 5% into paid users. Nonetheless, it may be years before Investors see a return on their investment, if they do at all.

Cash balances were approximately $70,000 as of December 31, 2015. Our cash and cash equivalents are held for working capital purposes. We do not enter into investments for trading or speculative purposes. Our policy is to invest any cash in excess of our immediate requirements in investments designed to preserve capital and provide liquidity. Substantially all of the Company’s cash is held in a large, widely recognized bank that the FDIC insures and which management considers financially stable. We anticipate using our available cash for operations within the year. We base this estimate on estimated
cash flows.

We expect that the proceeds of this offering will improve our liquidity and
provide additional working capital for our Company. The proceeds of this offering will enable the business to continue to pursue its main activities and are necessary to our viability.

Net cash used in operating activities primarily consisted of net loss and accrued
liabilities. Net cash used by operating activities was $(104,663) for the year ended 2015, which was driven by our operating loss.

We have financed our operations through issuances of convertible debt and other debt securities. Since inception, the Company has raised $220,000 cash in exchange for several convertible notes payable (collectively, referred to as the “Notes”). With some minor exceptions, the terms of the Notes are nearly identical, as described below.

These notes pay interest of 5% annually, and will mature and be payable on 6/10/2017 or will automatically convert into equity into the company in the event that the Company sells preferred equity securities to one or more investors for aggregate proceeds to the Company excluding cancellation of indebtedness under the Notes or any other convertible debt of at least $1,500,000 no later than 6/10/2017, at a price per share equal to the lesser of eighty percent (80%) of the price per share paid for the financing securities or the price per share obtained by dividing $3,500,000 by the Fully-Diluted Capitalization of the Company immediately prior to the closing of the financing.

We expect these trends to continue in the current fiscal year and in the coming
few fiscal years.