VISO BUSINESS PLAN. Token sale level Funds raised. Technologies launched. Share of Georgia s cash-desk equipment market

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1 B U S I N E S S P L A N

2 VISO BUSINESS PLAN The business plan is designed for five scenarios based on the amount collected during the Token sale. The profitability of the VISO business model depends on the number of technologies launched. Some of the technologies are too costly to launch without collecting sufficient Token sale funds. The technologies in turn allow for increasing the business s commission revenues. Token sale level Funds raised Technologies launched Share of Georgia s cash-desk equipment market M USD 10M USD 25M USD SMART terminals Merchant s user account Website builder Terminals distribution in cooperation with bank PSO license 5,7% VISO Wallet VISO plastic bank cards VISO contactless and virtual cards VISO Exchange TPP and MSP license by VISA and MasterCard 14,3% QR-code payments Global delivery of cards Card issuance to third-party banks Leadership in Georgia s acquiring market 54,2% The business relies on the key technology of building its own payment card processing system and obtaining VISA and MasterCard licenses to operate an independent processing center. This will enable the business to connect several banks for card issuance, create own cards, implement the SMART-balance technology to exchange cryptocurrency for fiat money, and most important increase interchange commissions from the SMART-terminals network and payment card purchases. So long as the payment card technology and VISO SMART-terminals technology operate through someone else s processing center, a significant portion of purchase commissions will be going to someone else.

3 SMART-TERMINALS BUSINESS The business model is designed to quickly capture Georgia s cashier equipment market. Quick capture is necessary to create a revenue base from the maintenance and popularization of cryptocurrency-accepting systems. For quick capture, the installation of free terminals will be financed out of Token sale revenues. Payback will be achieved from device maintenance and payment turnover growth via the VISO system. Revenues generated from the SMART-terminals network will go towards the development of a VISO card network and expansion of the terminals network to other countries. The business model relies on maintenance commissions, an online store support commission, interchange commissions from purchases, and cryptocurrency purchases. The amount of commissions is calculated based on the number of terminals installed. The business model assumes that all terminals cannot be installed in one month and that the placement of all devices will take one year. SERVICES PAYMENTS BUSINESS Every SMART terminal is also a payment terminal, through which payments for cellular communications, utilities, etc. can be accepted in favor of third parties. A commission is withheld from every payment, which VISO shares with the payment-accepting retail outlet. The business model takes into account this commission and the outlet s remuneration.

4 VISO CARD BUSINESS The business model incorporates two scenarios: the one with obtaining own processing and VISA and MasterCard licenses and the one without them. The base-case scenario involves the mail delivery of prepaid VISO Light cards around the globe. Using these cards, payments can be made in cryptocurrency, which will be converted subject to limits for unidentified cards. There are many similar projects, and crypto currency holders use several such cards at once to provide a limit sufficient for everyday expenses. The main scenario implies the issuance of contactless HCE cards with which to make payments from cellular phones that support this technology. The convenience here is that cards can be issued in 5 minutes and entail no delivery waits. In addition, cardholders can go through authentication at a bank and get large limits, increasing turnover. In both scenarios, the revenue comes from interchange commissions: a commission is charged for every purchase and cash withdrawal, and the payment system then shares the commission with the bank and VISO. A commission is also charged for card maintenance. The interchange is significantly higher when using own processing capability certified by VISA and MasterCard. The business model relies on the interchange commission, service commission, and the bank s remuneration. The volume is calculated from the number of open VISO wallets and ordered cards. The business model takes into account that it will not be possible to issue and sell all planned cards at once and that reaching the targets will take 1 year. CRYPTOCURRENCY CONVERSION BUSINESS The VISO exchange retains a commission for conversion between cryptocurrencies and when converting cryptocurrencies into VISO Wallet balances denominated in fiat currencies: the Georgian lari, US dollar, euro, and others. The business model takes these commissions into account. The volume is calculated based on the number of open VISO wallets.

5 BUSINESS MODEL PARAMETERS The business model relies on month-to-month calculations. VISO generates revenues and expenses in all areas of activity on a monthly basis. The business model takes into account the planned sales volume for all VISO products. All the standard parameters of purchase turnover, payments to third parties, number of card purchases, etc. are based on market averages. THE BUSINESS MODEL TAKES INTO ACCOUNT THE FOLLOWING REVENUE SOURCES: SMART terminals maintenance revenues: retail outlets where SMART terminals are installed pay a monthly commission for maintenance. The cost of maintenance will not grow in comparison with what outlets currently pay for cashier equipment. Interchange commission revenues from purchases via SMART terminals: for each purchase conducted using bank cards at a point of sale, the payment system retains a commission, part of which is shared with the VISO. Revenues from VISO Shop internet acquiring: a commission is withheld for each purchase made on a bank card from an online store. The payment system retains the commission and shares part of it with VISO. VISO Exchange revenues: a commission is withheld for every cryptocurrency-to-cryptocurrency and cryptocurrency-to-fiat-currency conversion. Funds withdrawal revenues: a commission is charged for withdrawing money from a VISO Wallet into bank accounts. Service payment commission revenues: for each service paid for via a payment terminal, a commission is withheld, part of which VISO shares with the point of sale. Card sales and support revenues: VISO retains a commission for the issuance and maintenance of cards. THE BUSINESS MODEL TAKES INTO ACCOUNT THE FOLLOWING EXPENCES: Payment system operator (PSO) license expenses: for registering a payment system, the state withholds the cost of the license and requires having a minimum capital. Processing certification expenses: the cost of obtaining TPP and MSP licenses from VISA and MasterCard and a mandatory deposit for making payments. Software expenses: these include the development of elements missing from VISO architecture, the acquisition of payment cards processing capability, and the maintenance of software products. Marketing and advertising expenses: the cost of all marketing efforts to promote SMART terminals and payment cards. Office and payroll expenses: these include the salaries of all employees involved in the conduct of VISO operations. Cost of cards delivery: VISO payment cards issuance and shipping expenses. Taxes: all payroll-related and other taxes. THE BUSINESS MODEL IMPLIES THE FOLLOWING CASH RESERVES: Exchange operation reserve: necessary to maintain transaction limits. Office expense reserve for initial 12 months: needed in case expenses go over planned values. The reserves will be spent if the expenses exceed their planned amounts.

6 FINANCIAL ESTIMATES REVENUES AND KEY NUMBERS Funds collected from Token sale 3M USD 10M USD 25M USD Number of SMART terminals installed Number of VISO cards issued Year 1 revenues from business $ $ $ Year 2 revenues from business $ $ $ Year 3 revenues from business $ $ $ EXPENSES BREAKDOWN Funds collected from Token sale 3M USD 10M USD 25M USD Expenses on terminals 39% 30% 45% Cards delivery expenses 6% 5% 7% Software licenses, development, and required deposit 20% 36% 15% Advertising expenses 16% 12% 18% Office expenses 8% 7% 5% 10% 10% 10% Exchange reserves The revenues will go towards the SMART-terminals network expansion beyond Georgia.