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An Emerging Mobile Gaming Leader Ticker: TAPM FEBRUARY 2015

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Page 1: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

An Emerging Mobile Gaming Leader

Ticker: TAPM

FEBRUARY 2015

Page 2: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

To the extent that statements contained in this presentation are not descriptions of historical facts regarding Tapinator, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Examples of forward-looking statements contained in this presentation include, among others, statements regarding the quoting and trading of our common stock and our expectations regarding our development and monetization plans for our mobile games. Forward-looking statements in this release involve substantial risks and uncertainties that could cause the development and monetization of our mobile games, future results, performance or achievements to differ significantly from those expressed or implied by the forward- looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the hits nature of the mobile gaming business. Tapinator

undertakes no obligation to update or revise any forward-looking statements. The quoting and trading of the company’s common stock on the OTC Bulletin Board and the OTC Market Group’s OTC Link quotation system is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the company’s operations or business prospects. As a result, there may be volatility in the market price of the shares of the company’s common stock for reasons unrelated to operating performance. Moreover, the OTC Bulletin Board and the OTC Market Group’s OTC Link quotation system are not stock exchanges, and trading of securities on them is often more sporadic than trading of securities listed on the NASDAQ Stock market or another securities exchange. Accordingly, stockholders may have difficulty reselling any of their shares. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see Tapinator’s filings with the OTC Market Group, which are available through http://www.otcmarkets.com.

FORWARD LOOKING STATEMENTS

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Page 3: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

M O B I L E G A M I N G G R O W I N G T O $ 4 1 B B Y 2 0 1 7The Market is Projected to More Than Double with 23.5% CAGR

Worldwide Motion Picture Box Office Revenues

$41Bby 2017

$38Bby 2014

$17Bby 2013

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Page 4: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

M O B I L E G A M I N G I S B O O M I N G70% of Smartphone users will play a mobile game in 2015

Source: Newzoo 2014 Global Games Market Report & Service 3

Page 5: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

F u l l F e a t u r e d G a m e s

3 to 6 month development timeline

Variety of categories including RPG, Quick-FIx,

& Social Casino

More risk but ability to generate home

run successes

Working with branded and celebrity IP

Monetizes primarily through in-app purchases

A W E L L P O S I T I O N E D I N D U S T R Y L E A D E ROver 80 Titles with a New Game Released Every Week

R a p i d L a u n c h G a m e s

Launching 1-2 games weekly

Using engines, game development has become

faster, more cost efficient over time

Profitable, low risk

Monetizes primarily through advertising

Tw o S i d e s o f t h e B u s i n e s s

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Page 6: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

A W E L L P O S I T I O N E D I N D U S T R Y L E A D E R

We Design, Develop, & Publish Original Mobile Games

We have launched three Full Featured Games on iOS. All three reached the Top 50 in Games

50+ Million Player Network

Ilya NikolayevCEO

Interviewed on Bloomberg

TOP 50 JAN 2015

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Page 7: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

A W E L L P O S I T I O N E D I N D U S T R Y L E A D E RCreating Original Content on the Pulse of Pop Culture

Two Recent Celebrity Games with Others in Development

N i k Wa l l e n d aSky Balance

M e l i s s a E t h e r i d g e Song-Based Game

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Page 8: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

A W E L L P O S I T I O N E D I N D U S T R Y L E A D E RA Low Cost, Profitable Producer of Original Mobile Games

Average Cost per Game Average Revenue per Game Average ROI per Game

$6.5K 230%$21.6K

7Historical data from 51 rapid launch games from 7/31/13 through 8/31/14

Page 9: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

F R E E M I U M B U S I N E S S M O D E LWe Monetize User Engagement

80% of Revenue 20% of Revenue

AdsIAP + Paid Downloads

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Page 10: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

No ads during gameplay Ads Shown Between Levels

When Game Ends Users can Purchase New Levels of Play

1 2

3 4

F R E E M I U M B U S I N E S S M O D E LOur Advertising Does Not Disrupt Gameplay

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Page 11: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

Free to Play Offer Premium Functionality

Monetize Gameplay with Consumables & Non-Consumables

F R E E M I U M B U S I N E S S M O D E LOur In-App Purchases Enhance Gameplay

1 2

3

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Page 12: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

M O B I L E M O N E T I Z AT I O N G E T T I N G S T R O N G E RUsers increasingly spend more money on apps as mobile grows

GROWTHCompoundAnnual Growth

Rates:

App Rev

Mobile AdoptionTIME

52.3

% C

AGR 2

010-2

017

14.6% CAGR 2013-2017

Source: DigiCapital 11

Page 13: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

G A M E S D O M I N AT E M O B I L E A P P R E V E N U EGames = ~74% of Revenue

Global mobile apps/games revenue ($B)

Source: DigiCapital

Games monetize ~4x more effectively

than all other mobile app types

Mobile Games

Other app categories

2013201220112010

5

10

15

20

GA

ME

S =

~74

% R

EV

EN

UE

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Page 14: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

C O M P E T I T I V E L A N D S C A P ERapid Launch and Full Featured Strategies Complement Each Other

Fast Dev

Slow Dev

EstablishedGame Play

OriginalGame Play

GLU

TAPINATOR FULL FEATURED

(Drive Users from Rapid Launch)

TAPINATOR RAPID LAUNCH

(50 Million Users)

King

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Zynga

Page 15: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

C O M P E T I T I V E A D VA N TA G EDeveloper Advantage

Speed Cost

Expertise

Quality

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Page 16: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

C O M P E T I T I V E A D VA N TA G EPublisher Advantage

NewGame

NewGame

NewGame

Cross Promotion System(50+ Million Player Network)

Platform Best Practices

App Store Optimization

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Page 17: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

F U L L F E AT U R E D G A M E P I P E L I N E

Combo Quest

F i r s t o f I t s K i n d :

· Time-Tap Mechanic

· Addictive Gameplay that Strengthens Hand-Eye Coordination

· Mass Appeal RPG for All Ages

· Version 1.0 Launched on 01/08/15

· Featured by Apple as a Best New Game

· Reached Top 25 Paid Games

· Version 1.1 Launching March 2015

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Page 18: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

F U L L F E AT U R E D G A M E P I P E L I N E

Video Poker VIP

W h y M o b i l e C a s i n o ?Mobile now accounts for 46% of all social casino game revenues generated worldwide and will

likely account for a majority sometime in the next few quarters.•

W h y V i d e o P o k e r ?• Video Poker is underrepresented on mobile

• Substantial driver of revenue in real money gaming

W h y U n i q u e ?Applying leveling mechanics to video poker increases engagement

* Source: Eilers Research Q1 2014 17

L a u n c h D a t eMarch 2015

Page 19: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

F U L L F E AT U R E D G A M E P I P E L I N E

Burn It Down

F i r s t o f I t s K i n d :

· Unique sidescrolling horror puzzle game

· Beautiful pixel graphics & effects

· A storyline filled with mystery

· Custom voiceovers with voice actors used

for each game character

· Intuitive, simple controls - left/right with

jumping and repelling off of walls accom-

plished by adusting the speed

· Launching April 2015

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Page 20: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

R E C E N T A C Q U I S I T I O N : I N A P P F U E L , I N C .Patent-Pending Casino Layer SDK

• Increases in-app purchases and game retention through minigames

• Provides revenue opportunity in other developers’ games

• Establishes relationship with potential acquisition targets

Increase in IAP transactions Average engagement

percentage

15% to 30% 33%60%

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Page 21: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

T E A M B I O SManagement

IIYA NIKOLAYEV - Chief Executive Officer

Co-Founder and CEO of Familybuilder until the sale of the Company to Intelius in 2011. Grew the business to profitability, over 45 million

users on the web, and over 2 million users on mobile (iOS and Android). Prior to Familybuilder, worked in banking for JP Morgan. Graduated

cum laude from New York University.

GEORGI DARAKEV - Lead Game Engineer

Led all feature development at Familybuilder. Extensive experience developing successful LAMP (Linux,Apache, MySQL, PHP) applications

and web services. Expertise in scaling applications on AWS, S3, and Rightscale. Built products used by millions monthly on both the web &

mobile. Bachelor’s in Computer Science from Dowling College.

TEYMOUR FARMAN-FARMAIAN - Senior Advisor

Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian was formerly the GM of Strategic Partnerships at

Zynga, CMO at Spotify, and Senior Director of Sales at Google.

ROBERT CRATES - Director

Over 25 years of experience in private equity, investing in a broad range of industries and asset categories. Mr. Crates has served on the

board of directors of numerous public and private companies.

KHURRAM SAMAD - Chief Technology Officer

Founded GeniTeam, an outsourced development Company focused on mobile with over 80 developers in house. Mr. Samad is an

experienced leader of offshore technical teams with access to superb local talent. Mr. Samad earned a BS in Computer Science from

National University of Computer and Emerging Sciences and an MBA from LUMS.

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Page 22: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

F I N A N C I A L H I G H L I G H T S (Unaudited)

* 2014 figures include an audit fee accrual of $42k (no audit fee accrued in 2013) and a one-time impairment loss of $156k

** Adjusted EBITDA excludes a one-time impairment loss of $156k

R E V E N U E

E B I T D A

A D J U S T E D E B I T D A

N E T I N C O M E

T O TA L A S S E T S

S T O C K H O L D E R S ’ E Q U I T Y

$130,980

70,921

70,921

55,157

137,219

62,157

6 months (inception)

DEC 31, 2013

$943,449

91,714*

247,923**

(20,054)*

1,577,230

1,074,524

21

12 months

DEC 31, 2014

Page 23: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

B A L A N C E S H E E T (Unaudited)

$12,418

34,199

2,158

72,964

0

15,480

137,219

$75,061

0

0

62,157

137,219

DEC 31, 2013

$121,740

130,681

17,500

1,268,383

19,086

19,840

1,577,230

$186,252

55,000

261,454

1,074,524

1,577,230

DEC 31, 2014

C a s h a n d C a s h E q u i v a l e n t s

A c c o u n t s R e c e i v a b l e

F i x e d A s s e t s , N e t

I n t a n g i b l e A s s e t s , N e t

I n v e s t m e n t s

O t h e r

T O TA L

L I A B I L I T I E S & E Q U I T Y

C u r r e n t

D e f e r r e d R e v e n u e

N o t e s P a y a b l e

To t a l S t o c k h o l d e r s ’ E q u i t y

T O TA L

A S S E T S

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Page 24: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

K E Y FA C T S

SHARE STATISTICS

Trading Symbol (OTC) TAPM

Stock Price (2/25/15) $0.30

Shares Outstanding 55.0mm

30d Avg. Volume 50,869

Market Cap $16.0mm

OTHERPersonnel 20

Fiscal Year Ends 12/31

Website Tapinator.com

Corporate HQ New York, NY

Auditor Liggett, Vogt & Webb, P.A.

CAP STRUCTURE(a/o 12/31/14)

Cash on Hand $0.1mm

Long Term Debt $0.3mm

Shareholder Equity $1.1mm

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Page 25: Ticker: TAPM An Emerging Mobile Gaming Leadertapinator.com/files/tapinator_investor_desk_3m_15.pdf · Senior marketing and strategy leader within mobile and gaming. Mr. Farman-Farmaian

T H A N K Y O U

For more information and a copy of this presentation, go to: http://tapinator.com/site/investors

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