SYT General, page-1434

Hello Mr

Thank you for your note to us.

Freeway Overpass is available on the Google App store to all Verizon and AT&T customers today. This is not a beta product, but a fully functioning commercial service. However, due to the US holiday in early July and our iOS release in mid-July, we are limiting our marketing activities for driving awareness to this service. We will use the next couple of weeks of limited Overpass distribution to help better refine our pricing and app bundles in anticipation of our extensive market campaigns starting in early August.

As for the margins, we have ~12 bundles each for 3 different subscription durations (day, week, month). Gross margins are projected to vary. Rather than providing projections, we will have actuals in a few months’ time that will give a better assessment of this new revenue model.

Many thanks,

Syntonic Investor Relations

From:
Sent: Friday, 30 June 2017 11:11 AM
To: Investor Relations
Subject: OTT announcement query.

Dear Mr Greenbaum,

I have several questions regarding Overpass.

In the latest announcement, you have stated that Freeway Overpass is now available to 140 Million AT&T and Verizon customers. However, you then go on to state that it is an ‘initial commercial release’ limited in distribution within the U.S. market and will be broadened in August.

Could you please clarify these statements as they are contradictory. How many Verizon and AT&T customers have access to this platform currently?

Following on from the first question; is the current ‘initial commercial release’ some kind of beta testing phase?

Lastly, are you able to comment on the percent amount of profit Syntonic generates from a single Overpass subscription?


Kind Regards,