Ann: Appendix 4C - quarterly, page-13

LINKEDIN'S JOURNEY (and how it could relate the our journey with Jaxsta)...

Key Jaxsta Pro subscription numbers so far, as of Oct 18th, since Freemium option launch in April 2020:

> 73000+ Jaxsta Pro sign-ups
> 21000+ Jaxsta profile claims
> 3000 new members added weekly (rough average)
> 875 new profile claims weekly (rough average)

If we assume the current averages continue for both Jaxsta Pro sign-ups and Profile claims we could expect around 150,000 sign-ups and 45,000 profile claims by April 2021.

I remember back when Linkedin was getting started I wasn't interested at all. I might have heard a couple of people mention it, but I was happy with my Facebook and had no idea what Linkedin was really going to good for. It wasn't until years later, when I applied for jobs that I realised I NEEDED a LinkedIn Profile in order to get ahead of the game. I kind of feel this could be the journey for Jaxsta. It's hard right now without having the butterfly effect from gigs, recording studio activity, festivals etc. That network effect is only happening mainly through online connections within the industry. But numbers will increase when the FOMO kicks in. Kind of like it did with Linkedin. You can see below, the early days of adoption (even the first few years) were pretty low in their overall percentage. It takes time, and trust, to build that user base. The really EXCITING thing for me is that Jaxsta has the ability to really disrupt the music industry in the networking way that Linkedin did for the workforce professionals.

The thing that worked so well for LinkedIn, and I hope has been a blessing for Jaxsta from being "forced" into the freemium model, is that anyone and everyone should be able to get some value from the website without having to pay. I love that I can put my profile on LinkedIn for free. But I also know that if I'm serious about getting a job, or networking, or taking a course even, then I've got options for Premium paid services. That's what made them so powerful, and can help Jaxsta do the same.

So with that thinking, I'm working off the Profile Claim numbers for potential revenue opportunities (being conservative). If they're wiling to claim a profile then they're probably willing to invest in order to get the advantage of all the premium services Jaxsta will provide (and continue to add in to the front end of the website during growth phases ahead).

And to top it off, remembering that the subscription revenue is only going to be around 15-20% of their expected annual revenue! So actually, we should be even more excited in the short term (next 12 months) about the API deals, as they'll provide revenue to support Jaxsta financially and help it increase it's growth strategy with the Jaxsta Pro offering. I see the API deals as the catalyst for driving everything forward with strong momentum. Remember how long Facebook was completely free for before it introduced the opportunity to "get ahead of the game" by paid advertising and promoting? Making Jaxsta sticky (and necessary for music professionals) with the freemium model will help them monetise the subscriptions exponentially in the future as it will just become part of their lives as music pros and something they couldn't do without.

Excited for what's to come!