Arvo PSF'ers Discussing tech stock thoughts on the STT this...

Arvo PSF'ers

Discussing tech stock thoughts on the STT this weekend and doing some research as are others.

I know everyone here would know this info inside out (and apologies for duplicating) but thought post up anyway as nice quick summary.

Just fyi - found that DJ Carmichael broker released a report early April, which was primarily pertinent to & released by D1* (covers some other tech stocks), but has information re Syntonic. Though not rated it would have obviously provided further exposure to DJ client base re PSF.

Gltah as always.

https://www.google.com.au/url?sa=t&...3799Z3xQeW4-OT1udYaFPg&bvm=bv.123664746,d.dGo

Date: 4 April 2016
Business Description
Incorporated in April 2013, Syntonic is a
Seattlebased software company with a vision to
transform how consumers and business access the
mobile Internet with their smartphones. Syntonic
has developed and deployed two mobile technology
solutions, one for consumers and one for
businesses

Key Points

Syntonic has two solutions in the mobile and mobile data space: Freeway and DataFlex.
Syntonic Freeway provides businesses with a way to engage customers by enabling them
to receive free data: Many smartphone users ration their mobile data or simply cannot afford to
connect. This is especially a problem in the developing world where some 2 billion people ration
their data and 3.7 billion cannot afford to connect. Syntonic’s platform allows for brands to pay
for consumer access to mobile internet. Syntonic believes that sponsored mobile content is a
$27 billion opportunity. Syntonic has launched in the US on the AT&T network with content
providers such as Expedia, and recently announced a partnership with Tata Communications.
Tata is one of the world’s largest telcos.

Freeway allows businesses to increase customer loyalty: By providing customers with free
internet, businesses are able to increase their customer reach and awareness, acquire new
users, and increase engagement and loyalty, all of which ultimately lead to greater revenues.
Syntonic earns revenue from the content sponsor and from the mobile operator, including a
revenue share as well as platform and licensing fees.

DataFlex allows for the better management of mobile phones used by employees:
Employees are using smartphones because they increase productivity however these
advantages are being eroded by the costs of the phone when it is being used for personal calls
and data access. Syntonic DataFlex allows for split billing and application data analytics and this
can reduce corporate mobile costs by as much as 50%. Syntonic will earn revenue from license
fees, maintenance, support and professional services.

Syntonic is exposed to the growing smartphone market: Thanks to the proliferation of cheap
Android based smartphones it is expected there will be 6.1 billion smartphone users by 2020.
Smartphones need data in order to achieve full functionality but the data infrastructure in the
developing world can be challenging and expensive for users who are predominately on prepaid
plans. The Syntonic Freeway will allow businesses operating in this environment to increase the
amount of mobile internet traffic, which then opens up opportunities for businesses to broaden
engagement with their customers.

Syntonic is already receiving revenue from its partnerships: Syntonic is already receiving
revenue from its partnerships with mobile providers. It recently announced that it would only be
raising the minimum needed to list on the ASX as revenues are already covering costs.
Syntonic is planning to launch Freeway into South East Asia: Syntonic is in the process of
launching Freeway across more markets in the developing world and is currently focussed on
South East Asia. The South East Asian market has very high mobile phone penetration with
strong growth in smartphone usage, which will provide strong macro tailwinds for the
development of Syntonic’s Freeway business in the region.

Key Points

Syntonic has two solutions in the mobile and mobile data space: Freeway and DataFlex.
Syntonic Freeway provides businesses a way to engage customers by enabling them to
receive free data: Many smartphone users ration their mobile data or simply cannot afford to
connect. This is especially a problem in the developing world where some 2 billion people ration
their data and 3.7 billion cannot afford to connect. Syntonic’s platform allows for brands to pay for
consumer access to mobile internet. Syntonic believe that sponsored mobile content is a $27 billion
opportunity. Syntonic has launched in the US on the AT&T network with content providers such as
Expedia and recently announced a partnership with Tata Communications. Tata is one of the
world’s largest Telcos.

Figure 22: Freeway app interface. Source: Syntonic

Freeway allows businesses to increase customer loyalty: By providing customers with free
internet businesses are able to increase their customer reach and awareness, acquire new users,
increase engagement and loyalty all of which ultimately lead to greater revenues. Syntonic earns
revenue from the content sponsor and revenue from the mobile operator including a revenue share
as well as platform and licensing fees.

Syntonic DataFlex allows for the better management of mobile phones used by employees:
Employees are using smartphones because they increase productivity however these advantages
are being eroded by the costs of the phone when it is being used for personal calls and data
access. Syntonic DataFlex allows for split billing and application data analytics and this can reduce
corporate mobile costs by as much as 50%. Syntonic will earn revenue from license fees,
maintenance, support and professional services.

Figure 23: Smartphone use for work. Source: Syntonic

Syntonic is exposed to the growing smartphone market: Thanks to the proliferation of cheap
Android based smartphones it is expected there will be 6.1 billion smartphone users by 2020.
Smartphones need data in order to achieve full functionality but the data infrastructure in the
developing world can be challenging and expensive for users who are predominately on prepaid
plans. The Syntonic Freeway will allow businesses operating in this environment to increase the
amount of mobile internet traffic which then opens up opportunities for businesses to broaden
engagement with their customers.

Syntonic is already receiving revenue from its partnerships: Syntonic is already receiving
revenue from its partnerships with mobile providers. It recently announced that it would only be
raising the minimum needed to list on the ASX as revenues are already covering costs.

Figure 24: Freeway monetisation model. Source: Syntonic

Syntonic is planning to launch Freeway into South East Asia: Syntonic is in the process of
launching Freeway across more markets in the developing world and as is currently focussed on
South East Asia. The South East Asian market has very high mobile phone penetration with strong
growth in smart phone usage which will provide strong macro tailwinds for the development of
Syntonic’s Freeway business in the region.

Figure 25: Syntonic Freeway potential market. Source: Syntonic

Corporate Summary

Incorporated in April 2013, Syntonic is a Seattle based software company with a vision to transform
how consumers and business access the mobile Internet with their smartphones. Syntonic has
developed and deployed two mobile technology solutions, one for consumers and one for
businesses:

 Freeway by Syntonic®
 Syntonic DataFlex®

Syntonic is currently undertaking an ASX listing via reverse takeover of Pacific Ore (ASXSF),
scheduled for completion in June 2016.

Figure 26: The proposed capital structure. Source: Syntonic

Directors and Management

Gary S. Greenbaum, Ph.D. - Co-Founder, CEO
15 years of mobile leadership at Microsoft, Hutchison Whampoa, and RealNetworks. Developed
RealVideo, the first global streaming video codec 8 granted patents. Dr Greenbaum holds a
doctorate in High Energy Particle Physics from University of California.

Rahul Agarwal - Co-Founder, CTO
A recognised expert in architecting and developing large-scale mobile client-server solutions.
Founder of Adroit Business Solutions, media solution enabler to the Fortune 100. Mr Agarwal
holds Master of Computer Science graduate degree with multiple granted and pending patents.


Ben Rotholtz - VP Marketing
Marketing team leader with more than 20 years of experience in consumer and enterprise
software. Launched and sustained over 100 commercial products and services. Mr Rotholtz is a
former VP of Marketing at PopCap and has held leadership roles at Electronic Arts, Rhapsody,
Adobe and RealNetworks.