KACHINGLE DOC STARTS PAGE 4 Kachingle (AdoptMeApp/SponsorMeApp) Update: February 5, 2016

Kachingle (AdoptMeApp/SponsorMeApp) Update: February 5, 2016
AdoptMeApp/SponsorMeApp powered by Kachingle Feb 5, 2016 update Rev 2 Page 1
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Dear Kachingle Investors, Convertible Note Holders, and Others,
This is a brief, informal update of our company status.
We are now in the companion animal welfare space. You can help us succeed by providing introductions
to people in that space, especially executives in: the pet industry (e.g. Purina, Merck, Petsmart),
companies that have a demonstrated interest in companion animal welfare (e.g. Subaru, Budweiser,
Uber), and news and entertainment organizations. That being said, all relevant introductions are
welcomed.
Current Status:
(a short background paragraph is at the end of this letter)
In the latter half of 2014 we created a mobile app and server-side technology to
drive donation traffic to Kachingle - thus removing our dependence on third parties.
The first market for our app is animal welfare, specifically adoptable pets in animal
shelters and rescue groups. Our app is called AdoptMeApp, although it is a general
social media storytelling tool for groups and can easily be applied to many
markets.
AdoptMeApp accelerates the re-homing of adoptable pets by raising awareness via
social media and improving the pets' online profile information.
AdoptMeApp is a content creation tool for animal shelter/rescue volunteers,
fosterers, and staff who interact with adoptable pets. AdoptMeApp is in production
in several animal shelters already. The AdoptMeApp posts (which currently go to Twitter) have been
viewed nearly 4M times.
Twitter feed for all partner shelters is on our homepage (you do not need a Twitter account to view).
Twitter accounts of our partner shelters (you do not need a Twitter account to view):
 Pets In Need, Redwood City, CA @AdoptMeCAPetsIN
o also check out their Feb 2016 Volunteer Newsletter
 Humane Society Silicon Valley @AdoptMeCA95035
 RSPCA Queensland, Australia @AdoptMeRSPCAQld
We are now in a pilot project with one of the largest animal welfare organizations in the world to
implement AdoptMeApp in additional animal shelters and rescue organizations.
In 2016 we will connect AdoptMeApp to Kachingle so that everyone who wants to help, but may not be
able to adopt, can sponsor (e.g. donate) to support a set of adoptable pets. We call that integration
SponsorMeApp. For those of you that are already familiar with how Kachingle works it is essentially
Kachingle with the news websites replaced by sponsorable pets.
All of our current focus is on making this pilot project with our major partner successful. A successful
AdoptMeApp pilot would be the stepping stone to a paid project to implement our system in hundreds,
perhaps thousands, of animal shelters and rescue groups. These groups would receive AdoptMeApp free
in return for also implementing SponsorMeApp. Long-term our business model remains the same - small
transaction fees from many donations. The new strategy is we now provide not only a donation system
(the original Kachingle, now called SponsorMeApp) but also a marketing tool (AdoptMeApp). We have
added the freemium business model (via the marketing service of AdoptMeApp) to our product line.

AdoptMeApp is not currently for consumers, although there are many areas of expansion that could
include a consumer version. If you would like to learn more about AdoptMeApp please visit
AdoptMeApp.org, our 15-second slideshow, the video of our American Red Cross Silicon Valley
Technology Hero Award, the 5-minute video presentation at Social Good Apps conference, or download
the app from the app store (AdoptMeApp) and sign up for our demo shelter.
As an indication of the traction we are getting in the animal welfare space, I have been invited to speak at
a major animal welfare conference for a group that has 200 rescue organizations as members.
Return on Investment:
If the pilot project with our large partner is successful, it is possible that we can close a deal with them for
a paid project to implement AdoptMeApp throughout their network. This paid project will enable us to
greatly expand our network of animal shelters/rescues with AdoptMeApp installed, and give us the time
and funding to implement SponsorMeApp. With SponsorMeApp in place we will begin to show evidence
that our business model (subscription donations distributed automatically via an algorithm) is viable.
We need to find more of these opportunities. You can help us succeed by providing introductions to
people in that space, especially executives in: the pet industry (e.g. Purina, Merck, Petsmart), companies
that have a demonstrated interest in companion animal welfare (e.g. Subaru, Budweiser, Uber), and news
and entertainment organizations. That being said, all relevant introductions are welcomed. Wildlife
organizations are also a target as with SponsorMeApp individuals can sponsor elephants, tigers, rhinos,
manatees, even redwood trees.
The animal welfare market space is difficult to enter due to low use of technology, innumerable required
integrations with old client-server systems, slow uptake on innovation, and tens of thousands of
independent players, thus as we overcome these barriers we are also building a solid front-runner
position that will be difficult for competitors without our passion and long-term tenacity to overcome.
The animal welfare market is
very large in terms of donations
alone. The overall market for
U.S. charitable giving is $360B
(72% of that from individuals).
Donations for environmental and
animal welfare organizations and
activities is approximately 11%
overall. Online giving is growing
at approximately 10%/year. [Note that while Americans are quite generous, so are residents of other
countries - therefore the international market is also important. We already have a production
AdoptMeApp system in Australia and we are in conversations with animal rescue groups in China.]
Due to the above factors, we believe that, given time, Kachingle investors will achieve a return-on-
investment.

Thank you:
I would like to thank the team for their outstanding work, unwavering commitment, and passion for both
animal welfare and the power of microdonations (Listed below in the order that they joined the company):
 Frank Spies
 Rob Blackwelder
 Frederic Ranft
 Helena Merk
 John Morris
I would also like to thank the Board of Directors, our advisors, and our mentors:
 Jens Horstmann - chairman
 Matt Perez - board member
 Todd Johnson - advisor
 Beth Ward - mentor
 Joel Voelz - mentor
 Judy Chen - mentor
Thanks to our controller, Paul Lefrois, and former board member Karen Barnes.
And a huge thanks to you, our investors and note-holders, and all others who have helped us on
this journey.
Feel free to contact me directly for further information and your thoughts on appropriate
introductions.
(Sample posts and pet profiles are below my signature)
Cynthia
FYI: We are in the process of moving our servers from Verio to Server4You for cost and backup reasons.
We are suspending the Kachingle payment system during the move. We bring it back up in the animal
welfare market re-branded as SponsorMeApp.
--
Cynthia Typaldos, CEO
AdoptMeApp | SponsorMeApp | all powered by Kachingle
AdoptMeApp - American Red Cross Silicon Valley 2014 Tech Hero!
AdoptMeApp.org | @AdoptMeApp
Try out AdoptMeApp in our Demo Shelter! Download from AppStore or GooglePlay
RootyTooty my adoptable foster dog
cynthia@kachingle.com | office: 408 867-8875 | cell 650 215-8406
Background:
Kachingle is positioned as a simple-to-use yet sophisticated micro-donation engine that distributes funding based on
an algorithm of the donor's choice. Donors build a "portfolio" of items to which their subscription donations are
automatically made, based on their chosen algorithm.
Our original target market was the news/content industry. While we did get some initial traction in this market, the
existing major players were unwilling to consider usage-based micro-donations as a viable revenue stream. Our
second target market was the enterprise app industry. This market required us to have a major technology partner,
and while we had numerous promising conversations with companies in this space we were not able to convince any
of them that our innovation of app bundles combined with usage-based micropayments was something they needed
at that point in time.

SAMPLE ADOPTMEAPP POSTS by our users (volunteers at animal shelters)
(click on links to go to pet profile or post/tweet)
Dougal (pet profile, AdoptMeApp post on Twitter)

Flickr (AdoptMeApp post on Twitter)

Jedi (pet profile, AdoptMeApp post on Twitter)

Boomer (pet profile, AdoptMeApp post on Twitter)

Mittens (pet profile, AdoptMeApp post on Twitter)

Rambo (pet profile, AdoptMeApp post on Twitter)

Cupcake (pet profile, AdoptMeApp post on Twitter)

Curly/BaconBit (pet profile, AdoptMeApp post on Twitter)

Toby (pet profile, AdoptMeApp post on Twitter)

KACHINGLE DOC STARTS PAGE 4 Kachingle (AdoptMeApp/SponsorMeApp) Update: February 5, 2016

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KACHINGLE DOC STARTS PAGE 4 Kachingle (AdoptMeApp/SponsorMeApp) Update: February 5, 2016