Offering Summary

Raise Amount:

Security Type:

Use of Proceeds:

Current Investors:

$5 million

Series B Preferred

Software Development,Sales Force and BusinessDevelopment expansion.

Chris Chase, CEOTed Wiggins, CTOEric Loberg, NewSeed Capital

MobileCord Profile

Location:

Founded:

Business:

Current Customers:

Employees:

Fairfax, VA

December, 2001

Development of software platform for unified mobile delivery ofemail, voice mail, and messaging.

Standish Brokerage, Hemlin Manufacturing, Storagehardware.

25

Motivation for Capital Raise

• Sales Force expansion (opening west coast office).

• Greater marketing presence.

• Add to strength in R&D team.

• Bring on CFO to help manage growth.

• Strengthen strategic ties.

Investment Thesis

• Many device, multi-platform mobile enterprise requires common solution for enterprise communication.

• Software successfully in production with enterprise users.

• Enterprise users demanding mobile access to enterprise communication tools.

• Low cash burn.

• Recurring Revenue Model.

• Experienced Management Team.

02,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

2001 2002 2003 2004

Year

Un

its

Sh

ipp

ed

Worldwide Handheld Shipments (in millions)

Source: IDC

33% CAGR

Market Opportunity

Mobile UsersCommunication Channels

Email

Messaging

Voice Mail

The Enterprise Dilemma

Mobile UsersCommunication Channels

Email

Messaging

Voice Mail

MobileCord’s flagship product, MobileCord 1.0, is the common

platform between a user’s communication channels & the major mobile devices.

The MobileCord Solution: MobileCord 1.0

The email Solution

emailvoice mail

instant messages

Chris Chase MobileCord info

Jim Purcell Design Question

Amy Shaffer Meeting tomorrow

Jim Purcell Client meeting

Name Title

Jay Spoto FWD: Phone call

Users may select theirmost recent emails theywish to read.

Users may respond,forward, or composenew messages as if theywere at their desks.

MobileCord 1.0 interfaces between your email system & the mobile device to deliver up to date information to the user.

emailvoice mail

instant messages

Jim Purcell 703-987-1234

Angie Palmer 212-123-7890

Unknown 312-789-1234

Name Phone Number

Frank Marino 212-234-56789

Barb Emory 703-398-4321

Select for exact dateand time of call.

The Voice Mail Solution

The voice mail featureis useful to check if important contacts havetried to get in touch withyou.

MobileCord 1.0 connects the users mobile device with theenterprise voice mail system to help the user prioritize tasks.

emailvoice mail

instant messages

Bill Burslem Burslem1234

Name User Name

We need to make a decision on the new software contract.

Users may use instantmessaging in real time.

The Instant Messaging Solution

MobileCord 1.0 enables the user to read instant messages when the user has a real time wireless connection.

Future Functionality

MobileCord will be releasing MobileCord 2.0 in Q1 of 2005 to include support for:

• New versions of email, voice mail & instant messaging platforms.

• Support for Convergent Devices with telephony and PDA capability.

• Support for Short Message Service (SMS) as the standard continues to be adopted by US Wireless carriers.

Customers

 

 

MobileCord plans to sell to a broad number of verticals and has already penetrated the Consulting, Financial, Manufacturing,and Technology equipment verticals.

ConsultingMallaber Consulting

FinancialNeenan InsuranceStandish Brokerage

ManufacturingHemlin ManufacturingMankins Equipment

Technology EquipmentGerdin SystemsStoragehardware

Competition

Many Channels ofCommunication

ABC Logic

Wireless emailer

Vortal Messaging Inc.

Easy to useSolution

Difficult to use

Few CommunicationChannels

Case Study

Standish Brokerage

Challenge:Account Executives needed access to their communicationchannels while outside of the office. Standish IT staff alsoneeded a mobile delivery solution of these communication channels that was easy to manage.

MobileCord solution:After a successful pilot trial, Standish implemented MobileCord 1.0in a matter of days allowing account executives to see theircommunication channels to use their time away from the officemore effectively.

Partners

Planned Partnerships:MobileCord plans to partner with IT Service firms,Wireless Providers and Device Manufactures.

Current Partnerships:MobileCord has a partnership with Mallaber Consultingto sell a complete Mobile solution from implementation to maintenance. Both firms will also cross-sell productsAnd solutions into each other’s customer base.

MobileCord plans on signing similar deals over the next 6 months.

Financial Results & ProjectionsActual Actual Actual Actual Actual Estimate

Q1-2007 Q2-2007 Q3-2007 Q4-2007 FY 2007 FY 2008Revenues

License Revenue $87,000 $141,325 $141,150 $372,725 $742,200 $2,197,559Professional Services 12,000 20,000 14,115 37,273 83,388 219,756

Total Revenue 99,000 161,325 155,265 409,998 825,588 2,417,315

Cost of RevenueCost of Licenses 870 1,413 1,412 3,727 7,422 21,976Cost of Services 64,155 64,155 64,155 64,155 256,620 367,770

Total Cost of Revenue 65,025 65,568 65,567 67,882 264,042 389,746

Gross Profit 33,975 95,757 89,699 342,115 561,546 2,027,570

Operating ExpensesSales and Marketing 208,507 281,587 278,353 285,097 1,053,544 1,710,108Research & Development 247,612 330,149 330,149 330,149 1,238,059 1,597,455General & Administrative 142,382 189,842 189,842 189,842 711,908 864,857Depreciation 14,583 14,583 14,583 14,583 58,333 75,000

Total Oper Expenses 613,083 816,162 812,928 819,671 3,061,845 4,247,419

Operating Income (579,108) (720,405) (723,229) (477,556) (2,500,299) (2,219,850)

Other income, net 16,404 11,913 6,980 2,420 37,717 72,206Income Before Taxes (562,705) (708,492) (716,249) (475,136) (2,462,582) (2,147,644)

Income Tax Provision 0 0 0 0 0 0

Net Income ($562,705) ($708,492) ($716,249) ($475,136) ($2,462,582) ($2,147,644)

5 Year ProjectionsActual Estimate Estimate Estimate Estimate

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011Revenues

License Revenue $742,200 $2,197,559 $4,065,485 $6,098,227 $9,147,341Professional Services 83,388 219,756 274,695 315,899 363,284

Total Revenue 825,588 2,417,315 4,340,180 6,414,126 9,510,625

Cost of RevenueCost of Licenses 7,422 21,976 43,402 128,283 190,212Cost of Services 256,620 367,770 260,411 320,706 475,531

Total Cost of Revenue 264,042 389,746 303,813 448,989 665,744

Gross Profit 561,546 2,027,570 4,036,367 5,965,138 8,844,881

Operating ExpensesSales and Marketing 1,053,544 1,710,108 1,953,081 2,244,944 3,328,719Research and Development 1,238,059 1,597,455 1,519,063 1,667,673 2,472,762General and Administrative 711,908 864,857 781,232 962,119 1,426,594Depreciation 58,333 75,000 75,000 75,000 75,000

Total Operating Expenses 3,061,845 4,247,419 4,328,376 4,949,736 7,303,075

Operating Income (2,500,299) (2,219,850) (292,009) 1,015,401 1,541,806

Other income, net 37,717 72,206 100,000 100,000 100,000Income Before Taxes (2,462,582) (2,147,644) (192,009) 1,115,401 1,641,806

Income Tax Provision 0 0 0 278,850 410,452

Net Income ($2,462,582) ($2,147,644) ($192,009) $836,551 $1,231,355

Pricing

MobileCord generates the majority of its revenue via license fees with the following pricing structure:

Up front License fee: $40,000Up front charge per user: $50Recurring charge per month per user: $10

MobileCord charges a recurring fee for as long as the customer uses our software.

Pricing example

Using our average user base per client of 300 users, we would charge the following:

Up front License fee: $40,000

Up front charge per user: $15,000 (300 * $50)

Recurring Charge per year: $36,000 (300 * $10 * 12 mo)

As more users are added to our platform, revenue visibility increases dramatically into future quarters.

Management Team

Executive

Chris Chase

Ted Wiggins

Stacey Francis

Eric Loberg

Title

CEO

CTO

VP of Sales

Director,MobileCord, Inc.General Partner, NewSeed Capital

Previous Experience

COO, Iroquois Software

CTO, Iroquois Software

VP of Sales, Parmelee Software

CEO, Loberg Tool & Die

Investment Highlights

• Many device, multi-platform mobile enterprise requires common solution for enterprise communication.

• Software successfully in production with enterprise users.

• Enterprise users demanding mobile access to enterprise communication tools.

• Low cash burn.

• Recurring Revenue Model.

• Experienced Management Team.