ASI Pitch Deck Crowdfunder Campaign 2020-01-10

1
ADVICE SYSTEMS, INC.
A new frontier in financial planning… expert advice made simple!
Presented January 2020

2 2Intelligent Decision Tools™… Expert advice made simple!
Financial Advisors:
• Constant changes in regulatory environment and tax law
• Providing holistic advice is labor-intensive
• Deliverables must be comprehensive and compliant
• Suboptimal recommendations negatively impact client
experience
Financial Institutions:
• Shortage of experienced advisors
o Cutback in training programs
o Small pool of educated new entrants to the profession
o Only 20% of all Financial Advisors have received the CFP®
designation
o Aging advisor workforce
o Consulting firm Moss Adams forecasts a shortage of at least
200,000 advisors by 2020
• Inconsistent advice /compliance risk
• SEC Regulation Best Interest Implementation
• Low advisor adoption of holistic advice
Pain Points -
Financial Institutions
Financial Advisors

Pain Points -
Employers
Consumer Websites
Employers:
• Loss of productivity due to employee financial stress
Consumer financial websites:
• Difficulty and cost of delivering personalized financial
advice via a financial advisor
• Lack of affordable access to personalized holistic
financial advice for employees
• Non-personalized advice and education leaves
consumers feeling overwhelmed and less likely to
implement product recommendations
• Providing employees with personal financial advice is
beyond the scope of HR

Industry Quotes
“A lesser-known challenge that many professionals — particularly those in fields where their
interactions with clients can result in life altering consequences — run up against after
they’ve got some education and experience under their belts is the realization that, despite
what they (Financial Advisors) have already learned, there’s an ocean of knowledge and
expertise between where they are and where they feel they need to be to best serve their
clients.”
Market forces are making planning as important as investment management, and firms
across the industry are rethinking their services. Market forces — like shifting demographics,
consumer demand and regulation — are making financial planning an imperative for firms
across the wealth management industry. As a result, financial planning technology is quickly
becoming the front line in the battle for client assets.
Firms are shifting from an investment-led mindset to a planning-led mindset, integrating the
financial planning conversation into the wealth management process,” said Isabella Fonseca,
senior analyst at Aite Group. In her report, nearly three-quarters of 344 financial advisers
surveyed said financial planning was equal to or more important than investment
management.
“But perhaps the greatest blocking point to financial planning software innovation is that few
new providers have really taken an innovative and differentiated vision of what financial
planning software can and should be… and instead continue to simply copy today’s
incumbents, adding only incremental new features while trying to forever be ‘simpler and
easier’ — without even any clear understanding of what, exactly, is OK to eliminate in the
process. Nonetheless, tremendous opportunity remains for real innovation in financial
planning software.”

INTELLIGENT DECISION TOOLS™
Simulating the process of how human
financial advisors work with clients, IDT
answers both routine and complex
personal financial planning questions
through a concise Q&A process typically
taking a few minutes or less.
The result is specific recommendations
based on the user’s profile.
Our Solution

• Neither traditional financial planning software
e.g. How much do I need to save to retire?
• Nor portfolio management / Robo advisor
software
e.g. How do I invest the money in my IRA?
First… what it’s not…
How Does IDT Work?

It is a new unique category… Automated Personalized Advice
• Uses advanced client profiling and knowledge
engineering within a rules-based expert system to
answer user questions.
• Incorporates both quantitative and qualitative
situational factor analysis.
• Makes the user an “instant expert” on virtually any
personal financial planning issue.
• Typically takes only a few minutes or less to
complete.
How Does IDT Work?
Automated Personal Financial Advice
It is a new unique category…

Unique Software Solution
Doesn’t automated personal
financial advice software
already exist?
Answer: No!
8
One of the nation’s leading FinTech experts -
December 2019
“Intelligent Decision Tools is very interesting and no one
else is doing this. This is good for compliance, and all
broker dealers would benefit from this software. This is a
no-brainer!”

Current Environment INTELLIGENT DECISION TOOLS™
Driven by educational process Powered by Knowledge Engineering
1) Typically requires several hours or more.
2) Advisor researches articles, worksheets, and
comparison tables from multiple sources.
1) Takes only a few minutes or less typically.
2) Push Knowledge Engineering presents the user w/
relevant strategies and related information including pros
and cons
3) Dependent on advisor’s knowledge and experience. 3) Guides user through intuitive interactive Q&A process.
4) Advisor is challenged to identify and weigh all factors. 4) Analyzes all relevant factors: Qualitative & Quantitative.
5) Recommendations can vary from advisor to advisor
due to inconsistent process.
5) Consistency of process assured due to strategies are
ranked in order from the closest match.
6) Loose process hurts client confidence in advisor’s
recommendations.
6) Clear guidance including strategy overviews, pros & cons
and implementation steps.
7) Advisor prepared report for client may not be
compliant.
7) Professional client deliverable seamlessly created that’s
compliant and comprehensive.
8) Client experience can be uneven. 8) Client experience is consistently exceptional!
How is it Unique?

✓ Advisor’s perspective:
• Simplifies and automates the process of delivering the highest quality holistic advice on virtually
any financial planning topic
• Seen as a knowledgeable and trusted professional
• Increased product sales and Assets Under Management
✓ Firm’s perspective:
• Consistent advice delivery process
• Enhances Reg Best Interest compliance
• Compliant with company policies, SEC and FINRA regulations
• Reduces cost of training and supporting advisors
• Improves retention of clients, advisors, and assets
✓ Client’s perspective:
• Consistent high-quality client experience
• Confidence in the advisor’s recommendations leads to implementation
Benefits of INTELLIGENT DECISION TOOLS™

Is it better for me to leave an
orphan 401(k) with my former
employer or to roll it over?
Should I take my pension’s monthly
benefit or is it better to roll over the
lump-sum?
I am a business owner… what’s the
best way to save for retirement?
Is it better to lease or purchase my
next car?
What should I do with my stock
options and how will I be taxed?
Use Cases
IDT Automated
Personal Financial
Advice

12 12Intelligent Decision Tools™…Expert advice made simple!
INTELLIGENT DECISION TOOLS™ Knowledge Representation & Reasoning
Example: Orphan 401(k) Should I Leave It or Roll it Over?
1. Select a tool from the menu
2. Review tool overview and list of strategies
3. Review strategy details if desired
4. Complete brief questionnaire 4 step process
5. View your results listing strategies ordered by
closest match
6. Select strategies and configure report
7. Save and print report
Tool Menu: Select a tool to seamlessly experience
Automated Personalized Advice
INTELLIGENT DECISION TOOLS™ User Flow:

Tool Overview: Review topic overview and
list of possible strategies
Strategy Details: View strategy overviews, pro/cons,
and implementation steps

Q&A Step 1) Simple Q&A with 12 core questions
starts with basic info
Q&A Step 2) Q&A gathers qualitative and
quantitative data

Q&A Step 3) Comprehensive data gathering covers
often overlooked issues
Q&A Step 4) Appropriate conditional questions
triggered based on user info

Your Answer: Strategies ordered by
closest match
Answer Details: Includes specific guidance and
implementation steps

Report Configuration: Allows user to customize
report to include related information
Report Printing: Save & print professional compliant
client presentation

What Industry Leaders are Saying
“[Intelligent Decision Tools] is an incredibly valuable addition to what exists in the marketplace.
In particular, the Intelligent Decision Tools seemed very interesting to what I think our advisors
would really appreciate. [It] has tons of value.”
“Thank you for sharing! I was curious to see what it was all about and it was extremely
impressive! Very exciting!”
“I’ve never been so impressed with financial software as I am with Intelligent Decision Tools.
Our firm consistently strives to provide the highest quality client experience and holistic advice.
This software simplifies the process and will help us to maintain consistency and high standards
in a challenging environment.”

Solution Capabilities
USER PROFILE + KNOWLEDGE ENGINEERING + RULES BASED EXPERT SYSTEM

Solution Comparison
Quantitative Quantitative
Personalized Advice Content

None of the 266
companies listed in
the chart can do
what IDT does!
New Unique Category Creates
Strategic Partnership Opportunities

Our great potential strategic partners include:
Potential Strategic Partners

Addressable Markets & Editions

Sales Channels

Business Model & Revenue Forecast
5 Year Revenue Forecast*Business Model
2020 $ 1.1m
2021 $ 6.6m
2022 $16.2m
2023 $29.6m
2024 $47.1m
*Revenue forecast based solely on Enterprise & Professional editions.

ASI Founder & CEO

ASI Senior Management Team

ASI 5 Yr. Quarterly Forecasted Revenue & Expense
Description Q1 2020 Q2 2020 Q3 2020 Q4 2020 Full Yr 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Full Yr 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full Yr 2022
Sales # Licenses: New 0 1,200 1,700 2,150 5,050 2,350 2,700 3,000 3,300 11,350 3,600 3,750 3,900 4,050 15,300
Sales # Licenses: Renewal 0 0 0 0 0 0 1,020 1,445 1,828 4,293 1,998 3,162 3,778 4,358 13,296
Sales # Licenses: Total 0 1,200 1,700 2,150 5,050 2,350 3,720 4,445 5,128 15,643 5,598 6,912 7,678 8,408 28,596
License Revenue: New 0 191,250 327,500 537,500 1,056,250 940,000 1,215,000 1,500,000 1,815,000 5,470,000 2,160,000 2,437,500 2,730,000 3,037,500 10,365,000
License Revenue: Renewal 0 0 0 0 0 0 162,563 278,375 456,875 897,813 799,000 1,170,928 1,511,619 1,931,094 5,412,641
Professional Services 0 19,125 30,800 33,531 83,456 50,100 54,675 63,750 72,600 241,125 104,400 109,688 116,025 121,500 451,613
Total Revenue 0 210,375 358,300 571,031 1,139,706 990,100 1,432,238 1,842,125 2,344,475 6,608,938 3,063,400 3,718,116 4,357,644 5,090,094 16,229,253
Payroll & Consultants 122,400 194,400 338,400 554,400 1,209,600 831,363 929,004 1,028,970 1,135,911 3,925,248 1,321,894 1,531,125 1,751,980 1,965,861 6,570,861
Office 18,000 18,000 18,000 21,000 75,000 62,245 63,759 65,308 66,966 258,279 69,849 73,092 76,515 79,830 299,286
AWS/Services 1,320 1,840 2,140 2,830 8,130 3,870 5,640 7,500 9,360 26,370 14,070 16,800 19,530 22,260 72,660
Marketing 24,000 30,000 30,000 30,000 114,000 47,000 60,750 75,000 90,750 273,500 108,000 121,875 136,500 151,875 518,250
Total Costs 165,720 244,240 388,540 608,230 1,406,730 944,478 1,059,153 1,176,779 1,302,987 4,483,397 1,513,813 1,742,892 1,984,525 2,219,826 7,461,056
Net (165,720) (33,865) (30,240) (37,199) (267,024) 45,622 373,084 665,346 1,041,488 2,125,541 1,549,587 1,975,224 2,373,118 2,870,267 8,768,197
Head Count 4 7 12 18 18 24 27 30 33 33 39 45 51 57 57
2020
2021 2022

Description Q1 2023 Q2 2023 Q3 2023 Q4 2023 Full Yr 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Full Yr 2024
Sales # Licenses: New 4,200 4,350 4,500 4,650 17,700 4,800 4,950 5,100 5,250 20,100
Sales # Licenses: Renewal 4,758 5,875 6,527 7,147 24,307 7,614 8,691 9,373 10,028 35,706
Sales # Licenses: Total 8,958 10,225 11,027 11,797 42,007 12,414 13,641 14,473 15,278 55,806
License Revenue: New 3,360,000 3,697,500 4,050,000 4,417,500 15,525,000 4,800,000 5,197,500 5,610,000 6,037,500 21,645,000
License Revenue: Renewal 2,515,150 3,067,164 3,605,376 4,223,305 13,410,995 4,993,878 5,749,964 6,507,070 7,344,684 24,595,595
Professional Services 134,400 147,900 162,000 176,700 621,000 192,000 207,900 224,400 241,500 865,800
Total Revenue 6,009,550 6,912,564 7,817,376 8,817,505 29,556,995 9,985,878 11,155,364 12,341,470 13,623,684 47,106,395
Payroll & Consultants 2,042,579 2,042,579 2,042,579 2,042,579 8,170,318 2,042,579 2,042,579 2,042,579 2,042,579 8,170,318
Office 81,019 81,019 81,019 81,019 324,077 81,019 81,019 81,019 81,019 324,077
AWS/Services 23,190 23,220 23,250 23,280 92,940 23,310 23,340 23,370 23,400 93,420
Marketing 168,000 184,875 202,500 220,875 776,250 240,000 259,875 280,500 301,875 1,082,250
Total Costs 2,314,789 2,331,694 2,349,349 2,367,754 9,363,585 2,386,909 2,406,814 2,427,469 2,448,874 9,670,065
Net 3,694,761 4,580,870 5,468,027 6,449,751 20,193,410 7,598,969 8,748,551 9,914,001 11,174,810 37,436,331
Head Count 57 57 57 57 57 57 57 57 57 57
ASI 5 Yr. Quarterly Forecasted Revenue & Expense
2023 2024

LTV:CAC 17:1
$4,846 $284
LTV & CAC Year 2024
20,100 New Licenses: Users
$21,645,000 New Licenses: Revenue
$16,233,750 Gross Profit: 75% Gross Margin
$808 Avg Annual Gross Profit: Per Client
6 Avg Customer Lifespan: 85% Renewal
$4,244,000 Sales & Marketing Staff
$ 374,000 Travel & Expenses
$1,082,250 Marketing: 5% of New Revenue
$6,000,000 Total Cost

Exit Strategy
ASI is an ideal acquisition
target for many large firms
due to its synergies with
existing solutions, such as;
CRM, Financial Planning,
Robo/Portfolio Management
July 2019
Orion Advisor Services acquires
Advizr for $50,000,000 cash with $3
million in revenues.

Founder bootstrapped since ASI launch in August 2018, investing $1.8
million thus far
$0.5m investment opportunity
Scales tool-set expansion, marketing & sales team
creation and revenue growth
Covers business operations to break-even in 2021
Investment & Growth

INTELLIGENT DECISION TOOLS™ Release Schedule

34 34CONFIDENTIAL – NOT FOR REDISTRIBUTION
Copy 10
Next Steps
®
© 2019 Advice Systems, Inc. All rights reserved
To learn more about this
exceptional investment
opportunity, please
contact me.
Thank you,
Ron
ADVICE SYSTEMS, INC.

ASI Pitch Deck Crowdfunder Campaign 2020-01-10

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