THE NEXT GENERATION

OF LEADERS

A RE@L OPPORTUNITY

“To raise new questions,

new possibilities, to regard old

problems from a new angle, requires

imagination and marks real advance

in science.”-Albert Einstein

Today’s Agenda

• S.T.E.M. as a Market Opportunity

• The RE@L Team

• RE@L Product - a SaaS Platform

• Distribution- Our Secret Sauce

• ROI

S.T.E.M. AS A MARKET

OPPORTUNITY

STEM

cience

echnology

ngineering

athematics

National Science and

Math Initiative

We face a shortage of workers and students proficient in math and

science. Compared to their global Peers, U.S. students recently

finished…

China

Korea

Japan

Canada

Germany

UK

27th in

mathUSA

China

Japan

Canada

Australia

Ireland

Poland

Belgium

20th in science

USA

We CAN

do

BETTER

!

+ =

H.R.1020 - STEM Education Act of 2015

Requires supported activities to include research and

development that improves understanding of learning

and engagement in informal environments and design

and testing of innovative STEM resources for such

environments to improve STEM learning outcomes and

increase engagement for elementary and secondary

school students

and teachers and the public.

Market

• 120,000 STEM

school targets

• Funding

–Federal $3.2 billion

–State & Local

Expenditures $19 billion

• Commitment

–National Defense

Authorization Act

THE RE@L TEAM

Thought Leaders

Thought Leaders

Heritage Steeped in Education

Technology

With over 5 decades of experience, RE@L understands what it is to

build, curate and distribute educational software.

Experienced Management Team

Dale LaFrenzChairman of the Board

MECC CEO & Founder

Control Data Corporation

Director K12 Marketing

Honeywell EDINET

Co‐founder

Scott Foresman Publishing

Mindscape Founder & CEO

Paul GullicksonPresident & CEO

MECC EVP & CEO

Learning Company School

SVP/CEO

Weekly Reader

Custom Publishing SVP

World Almanac SVP GM

Susan SchillingExecutive Vice President

MECC

EVP Product Development

Lucas Learning, Ltd. Founder

and CEO

New Tech Foundation CEO

Buck Institute for Education

Board President

Don RawitschExecutive Vice President

MECC Founder & Oregon

Trail Inventor

CTB/McGraw‐Hill Publishing

Director

Jostens Learning

VP Product Development

Tech & Learning –All‐Time

Top Ten Tech Influencer

RE@L PRODUCT

SAAS PLATFORM

Solution

Prepare all students to be leaders in the global marketplace with academic and professional

excellence in the fields of Science, Technology, Engineering

and Mathematics.

3 Investment Keys

for SaaS

• Critical Mass of Users and

Advocates

• Easy Content Distribution

and Updating

• Repeatable Revenue

Streams

RE@L STEM Investigations©

STEM Integration

Unique Portal

Flexible Products

Robust Investigations

Digital Learning Technology for the

Next Generation of Leaders

Mobile Platform

Teacher Testimonial

The Product Development Process

Product Line

Product Modules Content Concept Creative Coding

Water Quality X X X X

Forensic Science X X X

Green Home Construction X X

Health Habits & Life Insurance X

Invasive Species X

Nutrition & Food Sources X

Vehicle Traffic Flow X

Concert Tour Routing X

Design a Helpful Household Gadget X

Car Control Interface Design X

Moving Day –Machines Help in Moving Furniture X

Forestry – Measure Trees and Their Key Attributes X

STEAM – The Arts Applied to STEM Problem Solving X

Action and Reaction –Explains the Laws of Motion X

INVESTMENT

OPPORTUNITY

3 Investment Keys

for SaaS

• Critical Mass of Users and

Advocates

• Cost Effective and Efficient

Distribution

• Repeatable Revenue

Streams

Marketing, Sales and Implementation

Marketing• Conferences

• Focus Groups

• Social Media

Implementation

• Training

• Product Support

Sales• Direct Sales

Channel (ESAs)

• Annual license

(80% renewal)

DISTRIBUTION

OUR SECRET SAUCE

Powerful Connections

Positioned for Rapid

Success

Direct Channels

• Low cost, directdistribution

– Target State Educational Service Agencies (ESAs)

• Traditional & Emerging Marketing come together

Testimonials

“I strongly support the product

development that the team at RE@L

delivers. Students are able to learn and

sustain new materials right at their

desktop or mobile device.”

– Amy S. Perry-DelCorvo, CEO/Executive Director,

New York State Association for Computer and Technologies

in Education

Positioned for Rapid Success

Soft Launch Through Pilots

Bayside STEM Academy San Mateo, CA

Kennedy Middle School Dubuque, IA

MAST Academy, Miami Dade Schools, Miami, FL

Evelyth-Gilbert Jr. High, Evelyth, MN

Loveland Middle School, Loveland, CO

Edison STEM School Rochester, NY

Richardson West Junior Richardson, TX

Gale‐Ettrick‐Trempealeau Galesville, WI

Market – Penetration

‐

2,000

4,000

6,000

8,000

10,000

Year 16 ‐ 9

Year 26 ‐ 9

Year 3K ‐ 12

Year 4K ‐ 12

Year 5K ‐ 12

TotalMarket‐‐14,500

TotalMarket‐‐120,000

Installed Base

Schools

12,000

3.75%

10.10%

7.00%

Financial ProjectionsYear 1

Revenues

Year 2 Year 3 Year 4 Year 5

New licensing $ 167,000 $ 2,240,000 $ 7,045,000 $14,470,000 $27,735,000

Renewal licensing 99,750 1,422,750 5,366,250 12,976,500

Applications 9,706 424,215 1,390,309 3,078,306 6,132,500

Total Revenue $ 176,706 $ 2,763,965 $ 9,858,059 $22,914,556 $46,844,000

Research and Development

Development Staff 338,500 535,000 603,400 672,536 717,437

SME Consultants 48,750 45,000 55,000 57,200 59,488

Technology 444,000 359,000 457,000 475,280 494,291

Total Research andDevelopment

$ 831,250 $ 939,000 $ 1,115,400 $ 1,205,016 $ 1,271,216

Total Selling, General & Admin $ 1,075,753 $ 2,055,853 $ 2,868,029 $ 3,656,887 $ 4,632,500

Net Income (loss) before Taxes $ (1,730,298) $ (230,888) $ 5,874,630 $18,052,653 $40,940,285

Depreciation and Amortization 4,976 10,853 15,909 21,162 26,626

EBITDA $ (1,725,322) $ (220,035) $ 5,890,539 $18,073,815 $40,966,911

“Innovators who engage teachers and students,

and who invest in product design taking needs

into account, are the most likely ones to be

successful...”

“For those innovators, my

foundation wants to work with

you to close the equity gap in

American education.”

-Bill Gates

Educational Publishers

Technology Companies

Media/Gaming

Financial Partners

Exit S

tra

teg

yP

ossib

ilities

Private Equity Firms

Educational Technology Investors

The Investment Opportunity

Match Commitments

make the investment

worth 3X

Investment Round

to Close Aug 15,

2016

Product

Development

Marketing

Working Capital

$500,000 $1,500,000 Aug, 2016

$500,000 represents this round of financing

$1,500,000 represents this round of financing ($500,000) plus the $500,000 match and the $500,000

product purchase commitment from a North MN Education Department

MARKET NOW

EXPLODING

SCHOOLS

SCREAMING

FOR SOLUTION

RE@L READY

TO LAUNCH

Contact Information

Paul Gullickson President & CEO

619.316.9257

pgullickson@realexperiencesatlife.com

Expert Advisory Board

Deb DeVries VP Marketing, Houghton Mifflin Harcourt

Kathy Hurley EVP Education Alliances, Pearson Foundation

Betty RosaEdD, Regent, New York State Education Department

Sharnell Jackson Former Chief eLearning Officer, Chicago Public Schools

Tom KingPhD, Professor of Education at St. Thomas University, Apple

Distinguished Scholar

RE@L Organization

Board of Directors

Dale LaFrenz, Chairman

PaulGullickson

President & CEO

TBH

Executive Vice President Marketing & Sales

Cheryl Marty

Manager Implementation

Tracy Mangen

ExecutiveProducer

Tony Van Hoof

Chief Technology Officer IT Infrastructure

Jo Friedman

HumanResources

Don Rawitsch

Executive Vice PresidentProductionDevelopment

Craig Solomonson

ContentProgrammer

SarahBass

LearningInnovator

Outside Firm

Finance/Accounting

Board of Directors

RE@LInstitute

Susan Schilling

CEO

Bridging the Interests

and Needs of Clients,

Teachers and

Students

• Provides custom‐built

content to meet the client’s

needs

• Full turnkey services

including multiple

modalities of related

electronic‐delivered

product

Who We Are…

What We Do• A non‐profit organization

– Exposure to huge K‐12 education

market

– Generate royalty income

• Creator of education materials

• Provide free educational resources

• Provide tracking and educator

feedback

• Develop strategies that achieve clients’

goals

• Reach 52 million students, parents,

and 3 million educators

Competition

• Publishers

• Special InterestDevelopers

Accredited Investors

Offering

• $500,000 Common Stock

– Approximately 10% ownership

– $.33 per share

• $2.5 Million Common Stock

– Approximately 27% ownership

– $.60 per share

• Use of Proceeds

– Product Development

– Marketing

– Working Capital