# EDGAR Filing Document

**Accession Number:** 0001961710
**File Stem:** 0001670254-23-000003
**Filing Date:** 2023-1
**Character Count:** 450904
**Document Hash:** 72e0314d7e5ebe5e4720f81ae25df4fb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000003.hdr.sgml**: 20230111

**ACCESSION NUMBER**: 0001670254-23-000003

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 12

**FILED AS OF DATE**: 20230111

**DATE AS OF CHANGE**: 20230111

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Zero Cheating, Inc
- **CENTRAL INDEX KEY:** 0001961710
- **IRS NUMBER:** 921245320

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31596
- **FILM NUMBER:** 23522988

**BUSINESS ADDRESS:**
- **STREET 1:** 3200 N FEDERAL HWY #206-18
- **CITY:** BOCA RATON
- **STATE:** FL
- **ZIP:** 33431
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 3200 N FEDERAL HWY #206-18
- **CITY:** BOCA RATON
- **STATE:** FL
- **ZIP:** 33431

## Ex-99

### Attached PDF Documents

**Attachment 1:** `document_1.pdf`

# Form C

## Cover Page

Name of issuer:

Zero Cheating, Inc

Legal status of issuer:

Form: Corporation

Jurisdiction of Incorporation/Organization: DE

Date of organization: 11/22/2022

Physical address of issuer:

3200 N Federal Hwy

#206-18

Boca Raton FL 33431

Website of issuer:

https://zerocheating.com/index.html

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

CN number of intermediary:

0001670254

SEC file number of intermediary:

007-00033

CRD number, if applicable, of intermediary:

283503

Amount of compensation to be paid to the intermediary, whether as a dollar amount or a percentage of the offering amount, or a good faith estimate if the exact amount is not available at the time of the filing, for conducting the offering, including the amount of referral and any other fees associated with the offering.

6.5% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the issuer in connection with the offering.

Any other direct or indirect interest in the issuer held by the intermediary, or any arrangement for the intermediary to acquire such an interest:

No

Type of security offered:

☐ Common Stock

☐ Preferred Stock

☐ Debt

☑ Other

If Other, describe the security offered:

Simple Agreement for Future Equity (SAFE)

Target number of securities to be offered:

100,000

Price:

$1.00000

Method for determining price:

Pro-rated portion of the total principal value of $100,000; interests will be sold in increments of $1 each investment is convertible to one share of stock as described under item 13.

Target offering amount:

$100,000.00

Oversubscriptions accepted:

☑ Yes

☐ No

If yes, disclose how oversubscriptions will be allocated:

☐ Pro-rata basis

☐ First-come, first-served basis

☑ Other

If other, describe how oversubscriptions will be allocated:

As determined by the issuer

Maximum offering amount (if different from target offering amount):

$1,235,000.00

Deadline to reach the target offering amount:

4/30/2023

NOTE: If the sum of the investment commitments does not equal or exceed the target

offering amount at the offering deadline, no securities will be sold in the offering.

Investment commitments will be cancelled and committed funds will be returned.

Current number of employees:

1

|  | Most recent fiscal year-end: | Prior Fiscal year-end: |
| --- | --- | --- |
| Total Assets: | $3,550.00 | $0.00 |
| Cash & Cash Equivalents: | $0.00 | $0.00 |
| Accounts Receivable: | $0.00 | $0.00 |
| Short-term Debt: | $0.00 | $0.00 |
| Long-term Debt: | $0.00 | $0.00 |
| Retentives/Sales: | $0.00 | $0.00 |
| Cost of Goods Sold: | $0.00 | $0.00 |
| Taxes Paid: | $0.00 | $0.00 |
| Net Income: | ($65,274.00) | $0.00 |

Select the jurisdictions in which the issuer intends to offer the securities:

AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI

## Offering Statement

Respond to each question in each paragraph of this post. Set forth each question and any notes, but not any instructions thereto, in their entirety. If disclosure in response to any question is responsive to one or more other questions, it is not necessary to repeat the disclosure. If a question or series of questions is inapplicable or the response is available elsewhere in the form, either state that it is inapplicable, include a cross-reference to the responsive disclosure, or omit the question or series of questions.

Be very careful and precise in answering all questions. Give full and complete answers so that they are not misleading under the circumstances involved. Do not discuss any future performance or other anticipated event unless you have a reasonable basis or believe that it will actually occur within the foreseeable future. If any answer requiring significant information is materially inaccurate, incomplete or misleading, the Company, its management and principal shareholders may be liable to investors based on that information.

### THE COMPANY

1. Name of issuer:

Zero Cheating, Inc

### COMPANY ELIGIBILITY

2. ☑ Check this box to certify that all of the following statements are true for the issuer:

- Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia
- Not subject to the requirement to file reports pursuant to Section 13 or Section 15(a) of the Securities Exchange Act of 1934
- Not an investment company registered or required to be registered under the Investment Company Act of 1940
- Not ineligible to rely on this exemption under Section 4(a)(6) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding.
- Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that (a) has no specific business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

INSTRUCTION TO QUESTION 2: If any of these statements are not true, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 202 of Regulation Crowdfunding?

☐ Yes ☑ No

### DIRECTORS OF THE COMPANY

4. Provide the following information about each director (and any persons occupying a similar status or performing a similar function) of the issuer:

| Director | Principal Occupation | Main Employer | Year Joined as Director |
| --- | --- | --- | --- |
| Neil Parsons | Entrepreneur | Cram Tutoring | 2022 |

For three years of business experience, refer to Appendix D: Director & Officer Work History.

### OFFICERS OF THE COMPANY

5. Provide the following information about each officer (and any persons occupying a similar status or performing a similar function) of the issuer:

| Officer | Positions Held | Year Joined |
| --- | --- | --- |
| Neil Parsons | President | 2022 |

For three years of business experience, refer to Appendix D: Director & Officer Work History.

INSTRUCTION TO QUESTION 1: For purposes of this Question 1, the term officer means a president, vice president, secretary, treasurer or principal financial officer, competitor or principal accounting officer, and any person that controls performing similar functions.

### PRINCIPAL SECURITY HOLDERS

6. Provide the name and ownership level of each person, as of the most recent practicable date, who is the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power.

No. and Class

% of Voting Power

Name of Holder

Neil Parsons

of Securities Now Held

8000000.0 Common stock

Prior to Offering

100.0

INSTRUCTION IN QUESTION 6. The above information must be provided as of a date that is not more than 120 days prior to the date of filing of this offering statement.

To calculate total voting power, include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to own or redeem the voting of such securities. If the person has the right to acquire voting power of such securities within 60 days, including through the exercise of any option, warrant or right, the conversion of a security, or other arrangement, or if securities are held in a number of the family, through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities (or share in such direction or control - as, for example, a or interest they should be included as being "beneficially owned." You should include an explanation of these circumstances in a footnote to the "Number of and Class of Securities Now Held." To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

## BUSINESS AND ANTICIPATED BUSINESS PLAN

7. Describe in detail the business of the issuer and the anticipated business plan of the issuer

For a description of our business and our business plan, please refer to the attached Appendix A, Business Description & Plan

INSTRUCTION IN QUESTION 7. Wipnake will provide your company's Wipnake profile as an appendix (Appendix A) to the Form C to PDF format. The information will include all Q&A items and "read more" links to an unanticipated format. All values will be transcribed.

This means that any information provided to your Wipnake profile will be provided in the SEC in response to this question. As a result, your company will be potentially liable for misstatements and omissions in your profile under the Securities Act of 1933, which requires you to provide material information related to your business and anticipated business plan. Please review your Wipnake profile carefully to assure it provides all material information, is not false or misleading, and does not omit any information that would cause the information included to be false or misleading.

## RISK FACTORS

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.

In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

8. Discuss the material factors that make an investment in the issuer speculative or risky

The Company is an early-stage company. Accordingly, the Company's operations are subject to all the risks inherent in the establishment of a new business enterprise, including potential operating losses. Any investment in the Company must be considered in the light of risks, expenses, and difficulties frequently encountered by companies in an early stage of development in new and rapidly evolving markets. These risks include substantial dependence on acceptance into highly competitive marketplace surrounded by better funded more established companies. Our need to conduct product development and our need to expand our sales and support organizations, respond to competition, manage changing operations, develop strategic relationships, control costs and expenses, maintain and enhance our brand, expand our product and service offerings, improve function and benefits, attract integrate and maintain qualified personnel, and rely upon acceptance and growth in our targeted markets.

We have limited proof of the business model. Zero Cheating is a hardware and software solution to the epidemic of student cheating on standardized tests. Zero Cheating provides an online proctoring service through both patent pending technology and software to help solve cheating, privacy, and discrimination on exams. Potential clients have many other such services that take different approaches to preventing or catching student cheating including the use of artificial intelligence. There is no certainty of the number or persistence of clients interested in buying the toolset the Company sells.

The Company might not sell enough securities in this offering to meet its operating needs and fulfill its plans. The Company might need to reduce sales and marketing, technical, or other expenses. Were recurring revenue to decrease further cuts would be needed and hurt the Company's ability to meet its goals. Even if the Company raises the entire round successfully, we may need to raise more capital in the future to continue. Even if we do make successful offers in the future, the terms of that offering might result in your investment in the Company being worth less because of the terms of future investment rounds.

We have minimal operating capital. Even if we raise $1235M in this offering for the foreseeable future we will be dependent on our ability to finance our operations from the sale of additional equity or other financing alternatives. Startups often depend on raising several rounds of additional capital until they are profitable. There can be no assurance that we will able to successfully raise operating capital. The failure to raise operating capital could result in our bankruptcy or other event, which would have a material adverse effect on us and our investors. We have no significant assets or financial resources other than described herein so the failure to raise significant operating capital could put your investment dollars at significant risk.

Breaches of the Company's platform and systems may materially affect client adoption and subject the Company to significant negative reputational, legal, or operational consequences. Zero Cheating's user privacy has never been compromised to date due to a focus on encryption and security. But 100% security cannot be guaranteed. Cyber-crimes are becoming increasingly common and aggressive which parallel increase in risk.

Increased IT security threats and more sophisticated cyber-crime pose a potential risk to the security of our IT security systems, networks and services as well as the confidentiality, availability, and integrity of our data. If the IT systems, networks, or services providers we rely on fail to function properly, or if we suffer a loss or disclosure of business or other sensitive information due to any number of causes ranging from catastrophic events to power outages to security breaches and our business continuity plans do not effectively address these failures on a timely basis we may suffer interruptions in our ability to manage

operations, reputational, competitive, and/or business harm which may adversely affect our business operations and/or financial condition. In addition, such events could result in unauthorized disclosure of material confidential information and we may suffer financial and reputational damage because of lost or misappropriated confidential information belonging to us or to our partners, employees, clients, suppliers or consumers. In any of these events we could also be required to spend significant financial and other resources to remedy the damage caused by the security breach or to repair or replace IT network systems. The trend toward public notifications of such incidents could exacerbate the harm to our business operations or financial condition.

The Company's revenue model may be impaired or change. The Company's success depends mainly on its ability to receive revenue as earnings from sales to educational institutions. The Company may generate but retain some or all of the earnings for growth and development of our business and accordingly not make distributions to SAPE holders or shareholders. If the Company does not generate revenue its business, financial condition, and operating results will be materially adversely affected.

The Company has made certain assumptions about the education testing marketplace to create financial projections for the business. There is risk associated with the accuracy of these projections due to continuous changes in technology, new feature introductions by competitors and changes buying habits of our potential client base. In order to mitigate risk, the Company has taken great care to ensure the reliability and source quality of key assumptions used in the business plan. The Company diligently researches publicly available information and initiatives of competitors, changes in the marketplace and changes in user preferences. We pride ourselves on being innovative and ahead of the curve whenever possible.

To succeed in our intensely competitive industry, we must continually improve, refresh, and expand our product and service offerings to include newer features, functionality, or solutions, and keep pace with price-to-performance gains in the industry. Shortened product life cycles due to customer demands and competitive pressures impact the pace at which we must introduce and implement new technology. This requires a high level of innovation by both our software developers and the suppliers of the third-party software components included in our systems. In addition, bringing new solutions to the market entails a costly and lengthy process, and requires us to accurately anticipate customer needs and technology trends.

Industry consolidation may result in increased competition, which could result in a loss of customers or a reduction in revenue. Some of our competitors have made or may make acquisitions or may enter into partnerships or other strategic relationships to offer more comprehensive services than they individually had offered or achieve greater economies of scale. In addition, new entrants not currently considered to be competitors may enter our market through acquisitions, partnerships or strategic relationships. We expect these trends to continue as companies attempt to strengthen or maintain their market positions. The potential entrants may have competitive advantages over us, such as greater name recognition, longer operating histories, more varied services and larger marketing budgets, as well as greater financial, technical and other resources. The companies resulting from combinations or that expand or vertically integrate their business to include the market that we address may create more compelling service offerings and may offer greater pricing flexibility than we can or may engage in business practices that make it more difficult for us to compete effectively, including on the basis of price, sales and marketing programs, technology or service functionality. These pressures could result in a substantial loss of our customers or a reduction in our revenue.

The Company services a niche potential client base in a highly competitive environment. Zero Cheating seeks to become the preferred for all academic institutions, testing centers and corporate learning and development centers around the globe. However, our market is highly competitive, and our competitors offer different technology solutions our potential clients may prefer. It may take longer than expected to gain a foothold in this market and it may never happen to the satisfaction of our officers, directors, or investors.

The Company is very dependent on its founder. If anything catastrophic were to happen to the Company's founder Neil Parsons, the future of the Company may be compromised. The Company does not currently carry key-person life insurance, however, the Company plans to secure key-person life insurance when deemed financially prudent. The Company's founder and other key personnel have income streams and professional responsibilities. This could negatively affect Company growth. Also, the Company's future success may depend on the Company's ability to attract and retain key personnel and third-party contractual relationships. If the Company is unable to attract key personnel and third-party contractors this could adversely affect our business, financial condition, and operating results.

Zero Cheating's founder Neil Parsons controls 100% of the voting shares. As the majority holder of Common Stock, Mr. Parsons effectively controls the corporation. This could lead to unintentional subjectivity in matters of corporate governance, especially in matters of compensation and related party transactions. Mr. Parsons's voting power through his ownership of Common Stock could discourage or preclude others from initiating potential mergers, takeovers, or other change of control transactions.

We rely heavily on technology and intellectual property, but we may be unable to adequately or cost effectively protect or enforce our intellectual property rights thereby weakening our competitive position and increasing operating costs. To protect our rights in our products and technology we rely on a combination of trademark and copyright laws, trade secrets, confidentiality agreements with employees and third parties, and protective contractual provisions. Despite our efforts to protect our proprietary rights, unauthorized parties may copy aspects of our products or technology, obtain and use information, marks, or technology that we regard as proprietary or otherwise violate or infringe our intellectual property rights. In addition, it is possible others could independently develop substantially equivalent intellectual property. If we do not effectively protect our intellectual property or if others independently develop substantially equivalent intellectual property, our competitive position could be weakened. Effectively policing the unauthorized use of our products and technology is time consuming and costly. And the steps taken by us may not prevent misappropriation of our assets or other proprietary assets. The efforts we have taken to protect our proprietary rights may not be sufficient or effective and unauthorized parties may copy aspects of our products or obtain and use information, marks, or technology that we regard as proprietary. We may have to litigate to enforce our intellectual property rights, to protect our trade secrets, or to determine the validity and scope of others proprietary rights, which are sometimes not clear or may change. Litigation can be time consuming and expensive and the outcome difficult to predict.

Any dispute or litigation regarding patents or other intellectual property could be

costly and time-consuming. Due to the complexity of our technology and the uncertainty of intellectual property litigation our management and key personnel could be diverted from our business operations. A claim of intellectual property infringement could force us to enter into a costly or restrictive license agreement, which might not be available under acceptable terms or at all, could require us to redesign our products, which would be costly and time-consuming, and/or could subject us to an injunction against development and sale of certain of our products or services. We may have to pay substantial damages, including damages for past infringement if it is ultimately determined that our product candidates infringe a third party's proprietary rights. Even if these claims are without merit, defending a lawsuit takes significant time, may be expensive and may divert management's attention from other business concerns. Any public announcements related to litigation or interference proceedings initiated or threatened against as could cause our business to be harmed.

Purchasers will not become equity holders until the Company decides to convert the Securities into CF Shadow Series Preferred Stock or until there is a change of control or sale of substantially all of the Company's assets. Purchasers will not have an ownership claim to the Company or to any of its assets or revenues for an indefinite amount of time and depending on when and how the Securities are converted, the Purchasers may never become equity holders of the Company. Purchasers will not become equity holders of the Company unless the Company receives a future round of financing great enough to trigger a conversion. The Company may never convert the Securities into CF Shadow Series Preferred Stock (the type of equity Securities Purchasers are entitled to receive upon such conversion). In certain instances, such as a sale of the Company or substantially all of its assets, an IPO or a dissolution or bankruptcy, the Purchasers may only have a right to receive cash, to the extent available, rather than equity in the Company.

Purchasers will not have voting rights, even upon conversion of the Securities into CF Shadow Series Preferred Stock, upon the conversion of the SAFE into CF Shadow Series Preferred Stock (which cannot be guaranteed), holders of CF Shadow Series Preferred Stock will be required to enter into a proxy. Purchasers will not have the right to vote upon matters of the Company even if and when their Securities are converted into CF Shadow Series Preferred Stock (which the occurrence of cannot be guaranteed). Upon such conversion, CF Shadow Series Preferred Stockholders will have no voting rights and even in circumstances where a statutory right to vote is provided by state law, the CF Shadow Series Preferred Stock holders are required to enter into a proxy agreement allowing the Designated Lead Investor as defined in the SAFE Subscription Agreement and the Special Purpose Vehicle to vote their shares. For example, if the Securities are converted upon a round offering Series A Preferred Stock, the Series A-CF Shadow Series Security holders will be required to enter into a proxy that allows the Designated Lead Investor to vote their shares per the Special Purpose Vehicle contract. Thus, Purchasers will never be able to freely vote upon any manager or other matters of the Company.

Purchasers will not be entitled to any inspection or information rights other than those required by Regulation CF. Purchasers will not have the right to inspect the books and records of the Company or to receive financial or other information from the Company, other than as required by Regulation CF. Other security holders of the Company may have such rights. Regulation CF requires only the provision of an annual report on Form C and no additional information - there are certain methods by which the Company can terminate annual report obligations, resulting in no information rights, contractual, statutory or otherwise, owed to Purchasers. This lack of information could put Purchasers at a disadvantage in general and with respect to other security holders.

Purchasers will be unable to declare the Security in "default" and demand repayment. Unlike convertible notes and some other securities, the Securities do not have any "default" provisions upon which the Purchasers will be able to demand repayment of their investment. The Company has ultimate discretion as to whether or not to convert the Securities upon a future equity financing and Purchasers have no right to demand such conversion. Only in limited circumstances, such as a liquidity event, may the Purchasers demand payment and even then, such payments will be limited to the amount of cash available to the Company.

There is no present market for the Securities, and we have arbitrarily set the price. The offering price was not established in a competitive market. We have arbitrarily set the price of the Securities with reference to the general status of the securities market and other relevant factors. The Offering price for the Securities should not be considered an indication of the actual value of the Securities and is not based on our net worth or prior earnings. We cannot assure you that the Securities could be resold by you at the Offering price or at any other price.

In a dissolution event or bankruptcy of the Company, Purchasers will not be treated as priority debt holders and therefore are unlikely to recover any assets in the event of a bankruptcy or dissolution event. In a dissolution or bankruptcy of the Company, Securities which have not been converted will be entitled to distributions as described in the SAFE Agreement. This means that Purchasers may be at the lowest level of priority and will only receive distributions once all creditors as well as holders of more senior securities, including any preferred stockholders, have been paid in full. If the Securities have been converted into CF Shadow Series Preferred Stock, the Purchasers will have the same right and preferences (other than the ability to vote) as the holders of the Securities issued in the equity financing upon which the Securities were converted. Neither holders of the SAFE nor holder of CF Shadow Series Preferred Stock can be guaranteed a return in the event of a dissolution or bankruptcy.

The Company does not anticipate paying any cash dividends for the foreseeable future. The Company currently intends to retain future earnings, if any, for the foreseeable future, to support its business. The Company does not intend in the foreseeable future to pay any dividends to holders of its shares of preferred stock. Although the SAFE contains a mechanism whereby SAFE holders would receive dividends, this provision in no way obligates the Company to pay dividends in the future under any circumstances.

Any valuation at this stage is difficult to assess. Unlike listed companies that are valued publicly through market driven stock prices, the valuation of private companies, especially newer companies, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.

The Company has the right to extend the Offering deadline. The Company may extend the Offering deadline beyond what is currently stated herein. This means that your investment may continue to be held in escrow while the Company attempts to raise the Minimum Amount even after the Offering deadline stated herein is reached. Your investment will not be accruing interest during this time and will simply be held until such time as the new Offering deadline is reached

without the Company receiving the Minimum Amount, at which time it will be returned to you without interest or deduction, or the Company receives the Target Amount, at which time it will be released to the Company to be used as set forth herein. Upon or shortly after release of such funds to the Company, the Securities will be issued and distributed to you.

Neither the Offering nor the Securities have been registered under federal or state securities laws, leading to an absence of certain regulation applicable to the Company. No governmental agency has reviewed or passed upon this Offering, the Company or any Securities of the Company. The Company also has relied on exemptions from securities registration requirements under applicable state securities laws. Investors in the Company, therefore, will not receive any of the benefits that such registration would otherwise provide. Prospective investors must therefore assess the adequacy of disclosure and the fairness of the terms of this offering on their own or in conjunction with their personal advisors.

While the SAFE Agreement provides for mechanisms whereby a SAFE holder would be entitled to a return of their purchase amount, if the Company does not have sufficient cash on hand, this obligation may not be fulfilled. In certain events provided in the SAFE Agreement, holders of the SAFE may be entitled to return of their principal amount. Despite the contractual provisions in the SAFE Agreement, this right cannot be guaranteed if the Company does not have sufficient liquid assets on hand. Therefore, potential purchasers should not assume that they are guaranteed a return of their investment amount.

In the event which the company would be subject to the requirements of Section 12(g) within 6 months, they may choose to repurchase the securities from investors. Depending on which amount is greater, this repurchase may be at the investors purchase price, or the fair market value. Please see Section 1(d) of the SAFE attached to this Form C for additional information regarding the possibility of repurchases. In the event, which the company chooses to repurchase securities, investors may be forced to liquidate their investments prior to when they would otherwise choose, possibly resulting in the loss of future capital gains relating to the securities which are being repurchased by the Company.

Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.

INSTRUCTION AS DEFINITION 9: Avoid, pre-empted instruments and include only those factors that are unique to the issuer. This issuer should be ordered in the issuer's business and the offering and should not request the factors addressed in the legends set forth above. No specific number of risk factors is required to be identified.

## The Offering

### USE OF FUNDS

9. What is the purpose of this offering?

The Company intends to use the net proceeds of this offering for working capital and general corporate purposes, which includes the specific items listed in Item 10 below. While the Company expects to use the net proceeds from the Offering in the manner described above, it cannot specify with certainty the particular uses of the net proceeds that it will receive from this Offering. Accordingly, the Company will have broad discretion in using these proceeds.

10. How does the issuer intend to use the proceeds of this offering?

If we raise $100,000

Use of 75% Software and prototype development

18.5% Contingency capital

6.5% Wefunder fees

If we raise $1,235,000

Use of 42.5% Marketing and sales

35% Further research and development

16% Contingency capital

6.5% Wefunder fees

INSTRUCTION AS DEFINITION 10: An issuer must provide a reasonably detailed description of any intended use of proceeds, such that investors are provided with an adequate amount of information to understand how the offering proceeds will be used. If an issuer has identified a range of possible uses, the issuer should identify and describe each probable use and the factors the issuer may consider in allocating proceeds among the potential uses. If the issuer will accept proceeds in excess of the target offering amount, the issuer must describe the purpose, method for allocating proceeds/options, and intended use of the various proceeds with similar specificity. Please include all potential uses of the proceeds of the offering, including any that may apply only in the case of contractual options. If you do not do so, you may later be required to amend your Form C. Wefunder is non-replication for any failure by you to describe a potential use of offering proceeds.

### DELIVERY & CANCELLATIONS

11. How will the issuer complete the transaction and deliver securities to the investors?

Book Entry and Investment in the Co-Issuer. Investors will make their investments by investing in interests issued by one or more co-issuers, each of which is a special purpose vehicle ("SPV"). The SPV will invest all amounts it receives from investors in securities issued by the Company. Interests issued to investors by the SPV will be in book entry form. This means that the investor will not receive a certificate representing his or her investment. Each investment will be recorded in the books and records of the SPV. In addition, investors' interests in the investments will be recorded in each investor's "Portfolio" page on the Wefunder platform. All references in this Form C to an Investor's investment in the Company (or similar phrases) should be interpreted to include investments in a SPV.

12. How can an investor cancel an investment commitment?

NOTE: Investors may cancel an investment commitment until 48 hours prior to the deadline identified in these offering materials.

The intermediary will notify investors when the target offering amount has been

met. If the issuer reaches the target offering amount prior to the deadline identified in the offering materials, it may close the offering early if it provides notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment).

If an investor does not cancel an investment commitment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment.

If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor's investment commitment will be cancelled and the committed funds will be returned.

An investor's right to cancel. An investor may cancel his or her investment commitment at any time until 48 hours prior to the offering deadline.

If there is a material change to the terms of the offering or the information provided to the investor about the offering and/or the Company, the investor will be provided notice of the change and must re-confirm his or her investment commitment within five business days of receipt of the notice. If the investor does not reconfirm, he or she will receive notifications disclosing that the commitment was cancelled, the reason for the cancellation, and the refund amount that the investor is required to receive. If a material change occurs within five business days of the maximum number of days the offering is to remain open, the offering will be extended to allow for a period of five business days for the investor to reconfirm.

If the investor cancels his or her investment commitment during the period when cancellation is permissible, or does not reconfirm a commitment in the case of a material change to the investment, or the offering does not close, all of the investor's funds will be returned within five business days.

Within five business days of cancellation of an offering by the Company, the Company will give each investor notification of the cancellation, disclose the reason for the cancellation, identify the refund amount the investor will receive, and refund the investor's funds.

The Company's right to cancel. The Investment Agreement you will execute with us provides the Company the right to cancel for any reason before the offering deadline.

If the sum of the investment commitments from all investors does not equal or exceed the target offering amount at the time of the offering deadline, no securities will be sold in the offering, investment commitments will be cancelled and committed funds will be returned.

## Ownership and Capital Structure

### THE OFFERING

13. Describe the terms of the securities being offered.

To view a copy of the SAFE you will purchase, please see Appendix B, Investor Contracts. The main terms of the SAFEs are provided below.

The SAFEs. We are offering securities in the form of a Simple Agreement for Future Equity ("SAFE"), which provides investors the right to preferred stock in the Company ("Preferred Stock"), when and if the Company sponsors an equity offering that involves Preferred Stock, on the standard terms offered to other investors.

Conversion to Preferred Equity. Based on our SAFEs, when we engage in an offering of equity interests involving preferred stock, investors will receive a number of shares of preferred stock calculated using the method that results in the greater number of preferred stock.

i. the total value of the investor's investment, divided by
a. the price of preferred stock issued to new investors multiplied by
b. the discount rate (80%), or
ii. if the valuation for the company is more than $5,000,000.00 (the "Valuation Cap"), the amount invested by the investor divided by the quotient of
a. the Valuation Cap divided by
b. the total amount of the Company's capitalization at that time.
iii. for investors up to the first $100,000.00 of the securities, investors will receive a valuation cap of $4,000,000.00 and a discount rate of 80.0%.

Additional Terms of the Valuation Cap. For purposes of option (ii) above, the Company's capitalization calculated as of immediately prior to the Equity Financing and (without double-counting, in each case calculated on an as-converted to Common Stock basis):

- Includes all shares of Capital Stock issued and outstanding;
- Includes all Converting Securities;
- Includes all (i) issued and outstanding Options and (ii) Promised Options; and
- Includes the Unissued Option Pool, except that any increase to the Unissued Option Pool in connection with the Equity Financing shall only be included to the extent that the number of Promised Options exceeds the Unissued Option Pool prior to such increase.

Liquidity Events. If the Company has an initial public offering or is acquired by, merged with, or otherwise taken over by another company or new owners prior to investors in the SAFEs receiving preferred stock, investors will receive

- proceeds equal to the greater of (i) the Purchase Amount (the "Cash-Out Amount") or (ii) the amount payable on the number of shares of Common Stock equal to the Purchase Amount divided by the Liquidity Price (the "Conversion Amount").

Liquidity Priority. In a Liquidity Event or Dissolution Event, this Safe is intended to operate like standard nonparticipating Preferred Stock. The Investor's right to receive its Cash-Out Amount is:

i. Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or notionally converted into Capital Stock);
ii. On par with payments for other Safes and/or Preferred Stock, and if the applicable Proceeds are insufficient to permit full payments to the Investor and such other Safes and/or Preferred Stock, the applicable Proceeds will be

distributed pro rata to the Investor and such other Safes and/or Preferred Stock in proportion to the full payments that would otherwise be due; and
iii. Senior to payments for Common Stock.

### Securities Issued by the SPV

Instead of issuing its securities directly to investors, the Company has decided to issue its securities to the SPV, which will then issue interests in the SPV to investors. The SPV has been formed by Wefunder Admin, LLC and is a co-issuer with the Company of the securities being offered in this offering. The Company's use of the SPV is intended to allow investors in the SPV to achieve the same economic exposure, voting power, and ability to assert State and Federal law rights, and receive the same disclosures, as if they had invested directly in the Company. The Company's use of the SPV will not result in any additional fees being charged to investors.

The SPV has been organized and will be operated for the sole purpose of directly acquiring, holding and disposing of the Company's securities, will not borrow money and will use all of the proceeds from the sale of its securities solely to purchase a single class of securities of the Company. As a result, an investor investing in the Company through the SPV will have the same relationship to the Company's securities, in terms of number, denomination, type and rights, as if the investor invested directly in the Company.

### Voting Rights

If the securities offered by the Company and those offered by the SPV have voting rights, those voting rights may be exercised by the investor or his or her proxy. The applicable proxy is the Lead Investor, if the Proxy (described below) is in effect.

### Proxy to the Lead Investor

The SPV securities have voting rights. With respect to those voting rights, the investor and his, her, or its transferees or assignees (collectively, the "Investor"), through a power of attorney granted by Investor in the Investor Agreement, has appointed or will appoint the Lead Investor as the Investor's true and lawful proxy and attorney (the "Proxy") with the power to act alone and with full power of substitution, on behalf of the Investor to: (i) vote all securities related to the Company purchased in an offering hosted by Wefunder Portal, and (ii) execute, in connection with such voting power, any instrument or document that the Lead Investor determines is necessary and appropriate in the exercise of his or her authority. Such Proxy will be irrevocable by the Investor unless and until a successor lead investor ("Replacement Lead Investor") takes the place of the Lead Investor. Upon notice that a Replacement Lead Investor has taken the place of the Lead Investor, the Investor will have five (5) calendar days to revoke the Proxy. If the Proxy is not revoked within the 5-day time period, it shall remain in effect.

### Restriction on Transferability

The SPV securities are subject to restrictions on transfer, as set forth in the Subscription Agreement and the Limited Liability Company Agreement of Wefunder SPV, LLC, and may not be transferred without the prior approval of the Company, on behalf of the SPV.

14. Do the securities offered have voting rights?

☐ Yes

☑ No

15. Are there any limitations on any voting or other rights identified above?

See the above description of the Proxy to the Lead Investor.

16. How may the terms of the securities being offered be modified?

Any provision of this Safe may be amended, waived or modified by written consent of the Company and either:

i. the Investor or

ii. the majority-in-interest of all then-outstanding Safes with the same "Post-Money Valuation Cap" and "Discount Rate" as this Safe (and Safes lacking one or both of such terms will be considered to be the same with respect to such term(s)), provided that with respect to clause (ii):

A. the Purchase Amount may not be amended, waived or modified in this manner,

B. the consent of the Investor and each holder of such Safes must be solicited (even if not obtained), and

C. such amendment, waiver or modification treats all such holders in the same manner. "Majority-in-interest" refers to the holders of the applicable group of Safes whose Safes have a total Purchase Amount greater than 50% of the total Purchase Amount of all of such applicable group of Safes.

Pursuant to authorization in the Investor Agreement between each Investor and Wefunder Portal, Wefunder Portal is authorized to take the following actions with respect to the investment contract between the Company and an investor:

A. Wefunder Portal may amend the terms of an investment contract, provided that the amended terms are more favorable to the investor than the original terms; and

B. Wefunder Portal may reduce the amount of an investor's investment if the reason for the reduction is that the Company's offering is oversubscribed.

### RESTRICTIONS ON TRANSFER OF THE SECURITIES BEING OFFERED:

The securities being offered may not be transferred by any purchaser of such securities during the one year period beginning when the securities were issued, unless such securities are transferred:

1. to the issuer;

2. to an accredited investor;

3. as part of an offering registered with the U.S. Securities and Exchange Commission; or

4. to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or its connection with the death or divorce of the purchaser or other similar circumstance.

NOTE: The term "accredited investor" means any person who comes within any of the categories set forth in Rule 501(c) of Regulation D, or who the seller reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.

The term "member of the family of the purchaser or the equivalent" includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and includes adoptive relationships. The term "spousal equivalent" means a

consistent occupying a relationship generally equivalent to that of a spouse.

# DESCRIPTION OF ISSUER'S SECURITIES

17. What other securities or classes of securities of the issuer are outstanding? Describe the material terms of any other outstanding securities or classes of securities of the issuer.

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Restricted Common | 2,000,000 | 0 | Yes |
| Common stock | 8,000,000 | 8,000,000 | Yes |

Securities Reserved for
Issuance upon Exercise or Conversion

Warrants:

Options:

Describe any other rights:

If these SAFEs convert, they will convert to preferred stock which has liquidation preferences over both common stock and restricted common stock. The Company hasn't authorized any preferred stock yet. Restricted common stock vests on a monthly schedule.

18. How may the rights of the securities being offered be materially limited, diluted or qualified by the rights of any other class of security identified above?

The holders of a majority-in-interest of voting rights in the Company could limit the Investor's rights in a material way. For example, those interest holders could vote to change the terms of the agreements governing the Company's operations or cause the Company to engage in additional offerings (including potentially a public offering).

These changes could result in further limitations on the voting rights the Investor will have as an owner of equity in the Company, for example by diluting those rights or limiting them to certain types of events or consents.

To the extent applicable, in cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the Company may be diluted. This means that the pro-rata portion of the Company represented by the Investor's securities will decrease, which could also diminish the Investor's voting and/or economic rights. In addition, as discussed above, if a majority-in-interest of holders of securities with voting rights cause the Company to issue additional equity, an Investor's interest will typically also be diluted.

Based on the risk that an Investor's rights could be limited, diluted or otherwise qualified, the Investor could lose all or part of his or her investment in the securities in this offering, and may never see positive returns.

Additional risks related to the rights of other security holders are discussed below, in Question 20.

19. Are there any differences not reflected above between the securities being offered and each other class of security of the issuer?

No.

20. How could the exercise of rights held by the principal shareholders identified in Question 6 above affect the purchasers of the securities being offered?

As holders of a majority-in-interest of voting rights in the Company, the shareholders may make decisions with which the Investor disagrees, or that negatively affect the value of the Investor's securities in the Company, and the Investor will have no recourse to change these decisions. The Investor's interests may conflict with those of other Investors, and there is no guarantee that the Company will develop in a way that is optimal for or advantageous to the Investor.

For example, the shareholders may change the terms of the articles of incorporation for the company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority holders of securities. The shareholders may make changes that affect the tax treatment of the Company in ways that are unfavorable to you but favorable to them. They may also vote to engage in new offerings and/or to register certain of the Company's securities in a way that negatively affects the value of the securities the Investor owns. Other holders of securities of the Company may also have access to more information than the Investor, leaving the Investor at a disadvantage with respect to any decisions regarding the securities he or she owns.

The shareholders have the right to redeem their securities at any time. Shareholders could decide to force the Company to redeem their securities at a time that is not favorable to the Investor and is damaging to the Company. Investors' exit may affect the value of the Company and/or its viability.

In cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the Company may be diluted. This means that the pro-rata portion of the Company represented by the Investor's securities will decrease, which could also diminish the Investor's voting and/or economic rights. In addition, as discussed above, if a majority-in-interest of holders of securities with voting rights cause the Company to issue additional stock, an Investor's interest will typically also be diluted.

21. How are the securities being offered being valued? Include examples of methods for how such securities may be valued by the issuer in the future, including during subsequent corporate actions.

The offering price for the securities offered pursuant to this Form C has been determined arbitrarily by the Company, and does not necessarily bear any relationship to the Company's book value, assets, earnings or other generally accepted valuation criteria. In determining the offering price, the Company did not employ investment banking firms or other outside organizations to make an independent appraisal or evaluation. Accordingly, the offering price should not be considered to be indicative of the actual value of the securities offered hereby.

The initial amount invested in a SAFE is determined by the investor, and we do not guarantee that the SAFE will be converted into any particular number of shares of Preferred Stock. As discussed in Question 13, when we engage in an

offering of equity interests involving **Preferred Stock**. Investors may receive a number of shares of **Preferred Stock** calculated as either (i) the total value of the Investor's investment, divided by the price of the **Preferred Stock** being issued to new Investors, or (ii) if the valuation for the company is more than the Valuation Cap, the amount invested divided by the quotient of (a) the Valuation Cap divided by (b) the total amount of the Company's capitalization at that time.

Because there will likely be no public market for our securities prior to an initial public offering or similar liquidity event, the price of the **Preferred Stock** that investors will receive, and/or the total value of the Company's capitalization, will be determined by our **board of directors**. Among the factors we may consider in determining the price of **Preferred Stock** are prevailing market conditions, our financial information, market valuations of other companies that we believe to be comparable to us, estimates of our business potential, the present state of our development and other factors deemed relevant.

In the future, we will perform valuations of our **stock (including both common stock and Preferred Stock)** that take into account, as applicable, factors such as the following:

- • unrelated third party valuations;
- • the price at which we sell other securities in light of the relative rights, preferences and privileges of those securities;
- • our results of operations, financial position and capital resources;
- • current business conditions and projections;
- • the marketability or lack thereof of the securities;
- • the hiring of key personnel and the experience of our management;
- • the introduction of new products;
- • the risk inherent in the development and expansion of our products;
- • our stage of development and material risks related to our business;
- • the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business;
- • industry trends and competitive environment;
- • trends in consumer spending, including consumer confidence;
- • overall economic indicators, including gross domestic product, employment, inflation and interest rates; and
- • the general economic outlook.

We will analyze factors such as those described above using a combination of financial and market-based methodologies to determine our business enterprise value. For example, we may use methodologies that assume that businesses operating in the same industry will share similar characteristics and that the Company's value will correlate to those characteristics, and/or methodologies that compare transactions in similar securities issued by us that were conducted in the market.

22. What are the risks to purchasers of the securities relating to minority ownership in the issuer?

An Investor in the Company will likely hold a minority position in the Company, and thus be limited as to its ability to control or influence the governance and operations of the Company.

The marketability and value of the Investor's interest in the Company will depend upon many factors outside the control of the Investor. The Company will be managed by its officers and be governed in accordance with the strategic direction and decision-making of its Board Of Directors, and the Investor will have no independent right to name or remove an officer or member of the Board Of Directors of the Company.

Following the Investor's investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the Investor in the Company. The Investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be assured.

The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the Investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the Investor's interest in the Company.

23. What are the risks to purchasers associated with corporate actions, including additional issuances of securities, issuer repurchases of securities, a sale of the issuer or of assets of the issuer or transactions with related parties?

**Additional issuances of securities.** Following the Investor's investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the Investor in the Company. The Investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be assured. The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the Investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the Investor's interest in the Company.

**Issuer repurchases of securities.** The Company may have authority to repurchase its securities from shareholders, which may serve to decrease any liquidity in the market for such securities, decrease the percentage interests held by other similarly situated investors to the Investor, and create pressure on the Investor to sell its securities to the Company concurrently.

**A sale of the issuer or of assets of the issuer.** As a minority owner of the Company, the Investor will have limited or no ability to influence a potential sale of the Company or a substantial portion of its assets. Thus, the Investor will rely upon the executive management of the Company and the Board of Directors of the Company to manage the Company so as to maximize value for shareholders. Accordingly, the success of the Investor's investment in the Company will depend in large part upon the skill and expertise of the executive management of the Company and the Board of Directors of the Company. If the Board Of Directors of the Company authorizes a sale of all or a part of the Company, or a disposition of a substantial portion of the Company's assets, there can be no guarantee that the value received by the Investor, together with the fair market estimate of the value remaining in the Company, will be equal to or exceed the value of the Investor's initial investment in the Company.

Transactions with related parties. The Investor should be aware that there will be occasions when the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management and Board of Directors of the Company will be guided by their good faith judgement as to the Company's best interests. The Company may engage in transactions with affiliates, subsidiaries or other related parties, which may be on terms which are not arm's-length, but will be in all cases consistent with the duties of the management of the Company to its shareholders. By acquiring an interest in the Company, the Investor will be deemed to have acknowledged the existence of any such actual or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest.

24. Describe the material terms of any indebtedness of the issuer:

None.

INSTRUCTION IN QUESTION 24: name the credit, amount owed, interest rate, maturity date, and any other material terms.

25. What other exempt offerings has the issuer conducted within the past three years?

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 11/2022 | Section 4(a)(2) |  | $68,744 | General operations |
| 11/2022 | Section 4(a)(2) | Common stock | $80 | General operations |

26. Was or is the issuer or any entities controlled by or under common control with the issuer a party to any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, where the amount involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(8) of the Securities Act during the preceding 31-month period, including the amount the issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:

1. any director or officer of the issuer;
2. any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power;
3. if the issuer was incorporated or organized within the past three years, any promoter of the issuer;
4. or (4) any immediate family member of any of the foregoing persons.

☑ Yes

☐ No

For each transaction specify the person, relationship to issuer, nature of interest in transaction, and amount of interest.

| Name | Neil Parsont |
| --- | --- |
| Amount invested | $80.00 |
| Transaction type | Priced round |
| Issue date | 11/21/22 |
| Relationship | President |

| Name | Neil Parsont |
| --- | --- |
| Amount invested | $68,744.00 |
| Transaction type | Other |
| Issue date | 11/21/22 |
| Relationship | President |

Jawaker contribution

INSTRUCTIONS IN QUESTION 26: The term transaction includes: has is not limited to any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) or any series of similar transactions, arrangements or relationships.

Beneficial ownership for purposes of paragraph (1) shall be determined as of a date that is no more than 120 days prior to the date of filing of this offering statement and using the same calculation described in Question 8 of this Question and Answer format.

The term "number of the funds" includes one child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the person, and includes subpoena relationships. The term "spiritual equivalent" means a substitute occupying a relationship generally equivalent to that of a spouse.

Compare the amount of a related party's interest in any transaction without regard to the amount of the funds or loss involved in the transaction. Where it is not practicable to raise the approximate amount of the interest, describe the approximate amount involved in the transaction.

## FINANCIAL CONDITION OF THE ISSUER

27. Does the issuer have an operating history?

☐ Yes
☑ No

28. Describe the financial condition of the issuer, including, to the extent material, liquidity, capital resources and historical results of operations.

### Management's Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-

looking statements contained in the following discussion and analysis.

#### Overview

Zero Cheating provides patent-pending solution to stop all cheating in online exams. (Patents to be owned by the Company).

The founder chose to build this platform because he is passionate about education. He discovered that over 50% of students in some classes were cheating by sharing exam photos despite proctoring.

Students are cheating during online proctored exams by using their phones outside the webcam view or having another person in the room. Zero Cheating prevents these methods of cheating with patent-pending technology - a wide angled webcam viewing the entire student's body and surrounding desk area plus a 360 degree motion sensor.

In 5 years, we want to be in every online examination room ensuring the integrity and credibility of all exams and certifications. This is a projection and can't be guaranteed.

#### Milestones

Zero Cheating, Inc was incorporated in the State of Delaware in November 2022.

Since then, we have:

- Experienced team with over 40 years combined business experience
- $50,000 Endorsing Investment by a Yale Professor, Dr. Andrew Campbell
- Sustainable competitive advantage (Non-Provisional Utility Patent Filed)
- The Tech Company decided to invest over $100k of development services for equity instead of billing
- Increase the value of educational degrees

The Company is subject to risks and uncertainties common to early-stage companies. Given the Company's limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.

#### Historical Results of Operations

Our company was organized in November 2022 and has limited operations upon which prospective investors may base an evaluation of its performance.

- *Bermans & Gross Margin*. For the period ended November 30, 2022, the Company had revenues of $0
- *Assets*. As of November 30, 2022, the Company had total assets of $3,550, including $0 in cash.
- *Net Loss*. The Company has had a net loss of $65,274 for the period ending November 30, 2022.
- *Liabilities*. The Company's liabilities totaled $0 as of November 30, 2022.

#### Liquidity & Capital Resources

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don't have any other sources of capital in the immediate future.

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

#### Runway & Short/Mid Term Expenses

Zero Cheating, Inc cash in hand is $0, as of December 2022. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month, for an average burn rate of $0 per month. Our intent is to be profitable in 12 months.

No changes to our finances or operations have occurred since the date our financials cover. We plan to begin operations in January of 2023. The Company will begin to receive revenue once we sign client contracts.

Our revenue is dependent on client acquisition. No clients have yet signed as we will not begin operations until January 2023. Our revenues and expenses will be minimal in the next 3-6 months. Expenses will be covered by this capital raise. We expect to generate revenue in the next fiscal year.

After the conclusion of this Offering, should we hit our minimum funding target, we do not anticipate needing additional funds at this time. This determination may change with company or market conditions.

All projections in the above narrative are forward-looking and not guaranteed.

INSTRUCTIONS TO QUARTERLY: The discussion must cover each year for which financial statements are provided. For issuers with no prior operating history, the discussion should focus on financial statements and operational, liquidity and other challenges. For issuers with an operating history, the discussion should focus on whether business or results and cash flows are representative of what investors should expect in the future. This also includes the proceeds of this offering and any other known or pending sources of capital. This are how the proceeds from the offering will affect liquidity, whether incurring these funds and any other additional funds is necessary to the inability of the business, and how quickly the issuer anticipates using its available cash. Describe the other available sources of capital in the business, such as lines of credit or required contributions by shareholders. References to the issuer in this Question 20 and these instructions refer to the issuer and its predecessors, if any.

FINANCIAL INFORMATION

29. Include financial statements covering the two most recently completed fiscal years or the period(s) since inception, if shorter:

Refer to Appendix C, Financial Statements

1. Neil Parsons certify that:

(1) the financial statements of Zero Cheating, Inc included in this Form are true and complete in all material respects; and

(2) the financial information of Zero Cheating, Inc included in this Form reflects accurately the information reported on the tax return for Zero Cheating, Inc filed for the most recently completed fiscal year.

Neil Parsons

Entrepreneur

# STAKEHOLDER ELIGIBILITY

30. With respect to the issuer, any predecessor of the issuer, any affiliated issuer, any director, officer, general partner or managing member of the issuer, any beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, any promoter connected with the issuer in any capacity at the time of such sale, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 16, 2016.

(1) Has any such person been convicted, within 10 years (or five years, in the case of issuers, their predecessors and affiliated issuers) before the filing of this offering statement, of any felony or misdemeanor:

i. In connection with the purchase or sale of any security? ☐ Yes ☑ No
ii. Involving the making of any false filing with the Commission? ☐ Yes ☑ No
iii. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment advisor, funding portal or paid solicitor of purchasers of securities? ☐ Yes ☑ No

(2) Is any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before the filing of the information required by Section 4A(b) of the Securities Act that, at the time of filing of this offering statement, resumes or enjoins such person from engaging or continuing to engage in any conduct or practice:

i. In connection with the purchase or sale of any security? ☐ Yes ☑ No
ii. Involving the making of any false filing with the Commission? ☐ Yes ☑ No
iii. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment advisor, funding portal or paid solicitor of purchasers of securities? ☐ Yes ☑ No

(3) Is any such person subject to a final order of a state securities commission (or an agency or officer of a state performing like functions), a state authority that supervises or examines banks, savings associations or credit unions, a state insurance commission (or an agency or officer of a state performing like functions), an appropriate federal banking agency, the U.S. Community Futures Trading Commission, or the National Credit Union Administration that:

i. at the time of the filing of this offering statement bars the person from:
A. association with an entity regulated by such commission, authority, agency or officer? ☐ Yes ☑ No
B. engaging in the business of securities, insurance or banking? ☐ Yes ☑ No
C. engaging in savings association or credit union activities? ☐ Yes ☑ No
ii. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement? ☐ Yes ☑ No

(4) Is any such person subject to an order of the Commission entered pursuant to Section 13(b) or 13B(c) of the Exchange Act or Section 203(a) or (f) of the Investment Advisers Act of 1940 that, at the time of the filing of this offering statement:

i. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment advisor or funding portal? ☐ Yes ☑ No
ii. places limitations on the activities, functions or operations of such person? ☐ Yes ☑ No
iii. bars such person from being associated with any entity or from participating in the offering of any penny stock? ☐ Yes ☑ No

(5) Is any such person subject to any order of the Commission entered within five years before the filing of this offering statement that, at the time of the filing of this offering statement, orders the person to cease and desist from committing or causing a violation or future violation of:

i. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act, Section 10(c)(1) of the Exchange Act and Section 206(1) of the Investment Advisers Act of 1940 or any other rule or regulation thereunder? ☐ Yes ☑ No
ii. Section 3 of the Securities Act? ☐ Yes ☑ No

(6) Is any such person suspended or expelled from membership in, or suspended or burned from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or emission to act constituting conduct inconsistent with just and equitable principles of trade?

☐ Yes ☑ No

(7) Has any such person filed (as a registrant or issuer), or was any such person or was any such person named as an underwriter in, any registration statement or Regulation A offering statement filed with the Commission that, within five years before the filing of this offering statement, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is any such person, at the time of such filing, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued?

☐ Yes ☑ No

(8) Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 4A(b) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary restricting order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations?

☐ Yes ☑ No

If you would have answered "Yes" to any of these questions had the conviction, order, judgment, decree, suspension, expulsion or bar occurred or been issued after May 16, 2016, then you are NOT eligible to rely on this exemption under Section 4(a)(8) of the Securities

Act.

INSTRUCTIONS TO QUESTION 10: Final order means a written directive or declaration statement issued by a federal or state agency, described in Rule 3(b)(2)(A) of Regulation Crowdfunding, under applicable statutory authority that provides for notice and an opportunity for hearing, which constitutes a final disposition or action by that federal or state agency.

No matters not required to be disclosed with respect to events relating to any affiliated issuer that occurred before the affiliation name of the affiliated entity is not (1) in control of the issuer or (2) under common control with the issuer by a third party that was in control of the affiliated entity at the time of such events.

## OTHER MATERIAL INFORMATION

31. In addition to the information expressly required to be included in this Form, include:

- (1) any other material information presented to investors; and

- (2) such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made, not misleading.

The Lead Investor. As described above, each investor that has entered into the Investor Agreement will grant a power of attorney to make voting decisions on behalf of that Investor to the Lead Investor (the "Proxy"). The Proxy is irrevocable unless and until a Successor Lead Investor takes the place of the Lead Investor, in which case, the investor has a five (5) calendar day period to revoke the Proxy. Pursuant to the Proxy, the Lead Investor or his or her successor will make voting decisions and take any other actions in connection with the voting on Investors' behalf.

The Lead Investor is an experienced investor that is chosen to act in the role of Lead Investor on behalf of Investors that have a Proxy in effect. The Lead Investor will be chosen by the Company and approved by Wefunder Inc. and the identity of the initial Lead Investor will be disclosed to Investors before Investors make a final investment decision to purchase the securities related to the Company.

The Lead Investor can quit at any time or can be removed by Wefunder Inc. for cause or pursuant to a vote of investors as detailed in the Lead Investor Agreement. In the event the Lead Investor quits or is removed, the Company will choose a Successor Lead Investor who must be approved by Wefunder Inc. The identity of the Successor Lead Investor will be disclosed to Investors, and those that have a Proxy in effect can choose to either leave such Proxy in place or revoke such Proxy during a 5-day period beginning with notice of the replacement of the Lead Investor.

The Lead Investor will not receive any compensation for his or her services to the SPV. The Lead Investor may receive compensation if, in the future, Wefunder Advisors LLC forms a fund ("Fund") for accredited investors for the purpose of investing in a non-Regulation Crowdfunding offering of the Company. In such as circumstance, the Lead Investor may act as a portfolio manager for that Fund (and as a supervised person of Wefunder Advisors) and may be compensated through that role.

Although the Lead Investor may act in multiple roles with respect to the Company's offerings and may potentially be compensated for some of its services, the Lead Investor's goal is to maximize the value of the Company and therefore maximize the value of securities issued by or related to the Company. As a result, the Lead Investor's interests should always be aligned with those of Investors. It is, however, possible that in some limited circumstances the Lead Investor's interests could diverge from the interests of Investors, as discussed in section 8 above.

Investors that wish to purchase securities related to the Company through Wefunder Portal must agree to give the Proxy described above to the Lead Investor, provided that if the Lead Investor is replaced, the Investor will have a 5-day period during which he or she may revoke the Proxy. If the Proxy is not revoked during this 5-day period, it will remain in effect.

Tax Filings. In order to complete necessary tax filings, the SPV is required to include information about each investor who holds an interest in the SPV, including each investor's taxpayer identification number ("TIN") (e.g., social security number or employer identification number). To the extent they have not already done so, each investor will be required to provide their TIN within the earlier of (1) two (2) years of making their investment or (1) twenty (20) days prior to the date of any distribution from the SPV. If an investor does not provide their TIN within this time, the SPV reserves the right to withhold from any proceeds otherwise payable to the Investor an amount necessary for the SPV to satisfy its tax withholding obligations as well as the SPV's reasonable estimation of any penalties that may be charged by the IRS or other relevant authority as a result of the investor's failure to provide their TIN. Investors should carefully review the terms of the SPV Subscription Agreement for additional information about tax filings.

INSTRUCTIONS TO QUESTION 10: If information is presented to investors in a format, media or other means available to be released in one or possible document format, the issuer should include:

(a) a description of the material content of each information;

(b) a description of the format in which such disclosure is presented; and

(c) in the case of disclosure in what, and/or other documents made or found, a transcript or description of such disclosure.

## ONGOING REPORTING

32. The issuer will file a report electronically with the Securities & Exchange Commission annually and post the report on its website no later than

120 days after the end of each fiscal year covered by the report.

33. Once posted, the annual report may be found on the issuer's website at:

http://zerocheating.com/invest

The issuer must continue to comply with the ongoing reporting requirements until:

1. the issuer is required to file reports under Exchange Act Sections 13(a) or 15(d);
2. the issuer has filed at least one annual report and has fewer than 300 holders of record;
3. the issuer has filed at least three annual reports and has total assets that do not exceed $10 million;
4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Section 4(a)(6), including any payment in full of debt securities or any complete redemption of redeemable securities, or the issuer furnishes or discloses in accordance

with state law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird
Early Bird Zero Cheating EB SAFE
SPV Subscription Agreement
Zero Cheating SAFE NB

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Neil Parsont

Appendix E: Supporting Documents

ttw_communications_119140_160816.pdf

## Signatures

Intentional misstatements or omissions of facts constitute federal criminal violations. See 18 U.S.C. 1001.

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird

Early Bird Zero Cheating EB SAFE

SPV Subscription Agreement

Zero Cheating SAFE NB

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Neil Parsont

Appendix E: Supporting Documents

ttw_communications_119140_160816.pdf

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form C and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.

Zero Cheating, Inc

By

Neil Parsont

CEO

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), this Form C and Transfer Agent Agreement has been signed by the following persons in the capacities and on the dates indicated.

Neil Parsont

CEO
12/19/2022

The Form C must be signed by the issuer, its principal executive officer or officers, its principal financial officer, its controller or principal accounting officer and at least a majority of the board of directors or persons performing similar functions.

I authorize Wefunder Portal to submit a Form C to the SEC based on the information I provided through this online form and my company's Wefunder profile.

As an authorized representative of the company, I appoint Wefunder Portal as the company's true and lawful representative and attorney-in-fact, in the company's name.

place and stead to make, execute, sign, acknowledge, swear to and file a Form C on the company's behalf. This power of attorney is coupled with an interest and is irrevocable. The company hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of Wefunder Portal taken in good faith under or in reliance upon this power of attorney.

**Attachment 2:** `document_2.pdf`

![img-0.jpeg](img-0.jpeg)

## INVEST IN ZERO CHEATING

Share

# A patent-pending solution to stop all cheating in online exams

### LEAD INVESTOR

**Andrew Campbell** Faculty, Yale University

As Professor and lead faculty the integrity of academic testing and evaluation is critical to the student's learning environment. The deterrence and prevention of academic dishonesty are one of today's biggest educational challenges. Finally, there is a solution backed by a foundation of educational and technological industrial leading experts that resolves this educational gap. This product is not only reliable but superior to anything that is on the market today for educators to use. I highly recommend it. Dr. A. Campbell

Invested $50,000 this round

Learn about Lead Investors

zerocheating.com Boca Raton FL

**OVERVIEW** UPDATES WHAT PEOPLE SAY ASK A QUESTION

# Highlights

1 Experienced team with over 40 years combined business experience
2 $50,000 Endorsing Investment by a Yale Professor, Dr. Andrew Campbell
3 Sustainable competitive advantage (Non-Provisional Utility Patent Filed)
4 The Tech Company decided to invest over $100k of development services for equity instead of billing
5 Increase the value of educational degrees

# Our Team

![img-1.jpeg](img-1.jpeg)

Neil Parsont CEO

Raised over 500K in funding for previous start-ups. Won 2012 FAU Business Plan Competition 15+ years experience in education/tutoring sector MBA in Finance

I chose this idea because I am passionate about education. I found out over 50% of students in some classes were cheating by sharing exam photos despite proctoring.

![img-2.jpeg](img-2.jpeg)

Sarit Levy Chief Business and Strategy officer

Procured $50 million new revenue for Zschool (2022) 15+ yrs experience education business development PhD Business Administration (Professor at NYU)

![img-3.jpeg](img-3.jpeg)

Matthew Bordy CTO

Launched Prototype House Inc. in 2013 10+ Years Business Experience National brands

experience - Lowes, MBW, Husky & more)

SHOW MORE

## Pitch

![img-4.jpeg](img-4.jpeg)

Neil Parsont · President · neil@zerocheating.com · 561-542-2338

Hi, I am Neil Parsont, President of Zero Cheating - a fully automated online proctoring service. I need your investment to stop cheating during online exams. Thank you for viewing my presentation.

INDUSTRY
PROBLEMS

## 1 Students Are Still Cheating

Use of phones or extra person in the room outside limited viewing area of built-in webcams

## 2 Discrimination & Privacy Complaint

Discrimination and bias inherent in AI, collecting unnecessary biometric data for verification

The EPIC alleges the 5 companies violated the D.C. Consumer Protection Procedures Act

![img-5.jpeg](img-5.jpeg)

I have personally seen students share exam photos from proctored exams in large group chats of over 100 students. Cheating is the new pandemic. Furthermore, students are very frustrated with the unnecessary privacy invasion and data collection of existing proctoring services - hence the legal complaint filed by the Electronic Privacy Information Center. Imagine a world where students never cheated and actually learned the material - welcome to Zero Cheating!

## ZERO CHEATING SOLUTIONS

### 1 Prevent & Stop Conventional Cheating

- Wide angle webcam shows students entire body so can't use phone off camera
- Avoids use of intrusive AI monitoring to prevent cheating
- 360-degree motion sensor detects another person in the room

![img-6.jpeg](img-6.jpeg)

# UTILITY PATENT FILED

Almost all cheating is done in one of two ways. Using the phone outside the webcam viewing area or with another person in the room. The proprietary patent-pending camera uses a wide-angle lens so the keyboard, surrounding area, student's body and hands are always on camera. The motion sensor makes it impossible for another person to remain in the room undetected. Thus, students are unable to cheat in either of these two ways.

# ZERO CHEATING SOLUTIONS CONT'D

2

# Reduce Privacy & Discrimination Issues

- Room scan is not necessary because of motion sensor
- Background filter protects students home privacy
- Mobile app for location and biometric identity verification
- Less reliance on AI reduces inherent technology bias & discrimination
- Object detection

![img-7.jpeg](img-7.jpeg)

Almost all cheating is done in one of two ways. Using the phone outside the webcam viewing area or with another person in the room. The proprietary patent-pending camera uses a wide-angle lens so the keyboard, surrounding area, student's body and hands are always on camera. The motion sensor makes it impossible for another person to remain in the room undetected. Thus, students

are unable to cheat in either of these two ways.

## EXECUTIVE SUMMARY

### ABOUT US

Zero Cheating is a fully automated online proctoring service using patent-pending technology and software to help solve the cheating, privacy and discrimination issues on exams.

### VISION

Zero Cheating seeks to become the preferred proctoring partner for all academic institutions, testing centers, and corporate learning & development facilities around the globe.

### VALUES

Protect anonymity and privacy in exam taking. Safeguard the integrity of the institution serving the student body. Enhance service and support for all test-takers.

![img-8.jpeg](img-8.jpeg)

![img-9.jpeg](img-9.jpeg)

![img-10.jpeg](img-10.jpeg)

Viewing the student’s background is not necessary to prevent cheating and violates their privacy. The background filter protects the student’s privacy without allowing them to cheat. In terms of ensuring the correct student is taking the exam, conventional proctoring systems attempt to match the student’s face against a small image on their student ID. This method is very prone to errors and easy to circumvent. Zero Cheating offers institutions the choice of multiple biometric identity verification methods to verify the identity of the test taker.

Zero Cheating’s larger viewing area and motion sensor make it less reliant on AI which is very important. Studies have shown AI has inherent bias against certain groups so reducing reliance on this technology helps to avoid many discrimination issues.

ZERO CHEATING

# ZERO CHEATING
LEADERSHIP

![img-11.jpeg](img-11.jpeg)

Neil Parsont
PRESIDENT & FOUNDER

- Owner & Founder of online tutoring service
- 2012 FAU Business Plan Competition Winner
- Prior Fundraising: $500k

![img-12.jpeg](img-12.jpeg)

Dr. Sarit J. Levy
CBD & SO

- Chief Executive in Ed & Fintech
- Growth & scale startups for acquisition
- Published SME in Entrepreneurship, Innovation & marketing

![img-13.jpeg](img-13.jpeg)

Matthew Bordy
CTO & PRODUCT DEVELOPMENT

- Founder Prototype House in 2013
- Expert in Product Development
- Startup Mentor

We have two primary goals. First, we want institutions to trust us to ensure the academic integrity of their exams. Second, we want exam takers to feel comfortable and respected. As opposed to being viewed as a spy trying to catch the student cheating, we are creating an environment where cheating is simply not possible. Because we are not invading students' privacy with room scans, using a background privacy filter and creating an honest test-taking environment, Zero Cheating enjoys a more favorable student perception.

Our vision and values were carefully selected to achieve these goals.

# COMPETITOR
ANALYSIS

Compare ZERO CHEATING to "other services"

![img-14.jpeg](img-14.jpeg)

![img-15.jpeg](img-15.jpeg)

| PRICING $10.95/ student unlimited annual license - automated proctoring | PRICING Average $11/ student unlimited annual license - automated proctoring $15 - $30/student per exam - live person proctoring |
| --- | --- |
| OBJECT DETECTION Patent-pending wide-angle camera provides visual detection of phones or illicit devices confirmed by software | OBJECT DETECTION Only use AI to analyze student behavior to determine if using phones or other illicit items off camera |
| EXTRA PERSON IN THE ROOM 360-degree motion sensor | EXTRA PERSON IN THE ROOM Room scan (easy to hide off camera) & AI |
| IDENTITY VERIFICATION Variety of biometric identification methods, fingerprint with phone, retina scan, facial recognition, audio, & photo match | IDENTITY VERIFICATION Match webcam view to student ID |
| BIAS & DISCRIMINATION Avoid reliance on AI reduces technology bias & discrimination | BIAS & DISCRIMINATION AI leads to inherent cultural and ethnic bias & discrimination |

I have extensive experience tutoring and communicating with students of all grade levels. This experience helps me know not only exactly how students cheat (they directly tell/confide in me) but understand why they cheat. One of the main reasons is opportunity. This knowledge helped me craft the ultimate system to prevent (as opposed to try and detect) all forms of cheating.

The success of the business involves two critical functions: Sales to institutions and a fully functional hardware/software combination. To maximize chances of success, Zero Cheating insourced both functions. Dr. Levy and Mr. Bordy both have vesting equity stakes to maximize their efforts.

Dr. Levy has over 25 years business experience, 8 of which are in c-suite level positions. She was previously a professor at NYU and published in 7 double-blind peer review studies. She has worked as CMO and CRO for multiple companies increasing revenue to 100 million per annum. Recently, she has been working as CMO and selling directly to universities. She has relationships and sales experience with hundreds of universities and thousands of contacts. She is currently in preliminary negotiations with over 45 universities for Zero Cheating.

Mr. Bordy has over 10 years of experience managing and developing prototypes and software through his company. He has led and participated in numerous programs with national and international brands, such as: Office Depot, Home Depot, Lowes, BMW Design works USA, ACCO, V-Tech, Li & Fung, Big Red Roster, Emerson, SanDisk, Skill, Craftsmen, Husky, Workforce, Case Logic, and private labels.

private labels.

For Zero Cheating, he leads a dedicated team of experts in updating and maintaining top level software and hardware for Zero Cheating.

## TARGET MARKETS

![img-16.jpeg](img-16.jpeg)

Zero Cheating positions itself for distribution in 3 fundamental markets

| PRIMARY | SECONDARY | TERTIARY |
| --- | --- | --- |
| College or university student (U.S. only) | Firms yielding $1m in revenue with 20+ employees | College or university student (India, Indonesia & China) |
| 19,600,000 | 719,716 | 45,000,000 |
| Average number of students/school | 5% requiring proctoring software for certifications/licensures | Number of students/school |
| 3,698 | 35,985 | 3,698 |
| ZERO CHEATING MARKET SHARE (20%): | ZERO CHEATING MARKET SHARE (25%): | ZERO CHEATING MARKET SHARE (1%): |
| 1,060 | 8,996 | 450,000 |
| Colleges | Corporate Partners | Colleges |

Our focus is on the US market and all the financials conservatively include only this market. Therefore, we allow significant upside potential for investors. Currently, Respondus a lock down browser webcam combination, has 65% usage by universities followed by ProctorU at 23%. Universities sometimes use multiple services and do not have any exclusive agreements. Thus, considering no switching barriers, the 20% target market share by year 5 is extremely conservative considering Zero Cheating offers a significantly better service at the same price point.

## MARKET PENETRATION

1

File public records requests for contracts and invoices in over 100 public universities
Complete preliminary testing of students (already secured multiple deals with professors)
Continue sales process with 45 current university leads

2

Finalize sales with existing contacts and market to new universities
Continue marketing and expand into the secondary corporate market
Increase brand and market share

3

Complete penetration of primary US Market
Expand internationally
Maturity and exit Y5 EBITDA $19.5m

![img-17.jpeg](img-17.jpeg)

![img-18.jpeg](img-18.jpeg)

![img-19.jpeg](img-19.jpeg)

![img-20.jpeg](img-20.jpeg)

The prototype and MVP software are complete, and testing is coordinated for the Spring Semester of 2023 with multiple professors at different universities. We are currently in preliminary negotiations with over 45 universities regarding using Zero Cheating as their proctoring service provider and reaching out to more on a regular basis.

## FINANCIAL ASSUMPTIONS

SELLING PRICE

$10.95/student, unlimited annual

EBITDA MULTIPLE

10X

COST OF REVENUE

$5/camera

SAFE VALUATION CAP

$5 Million

USE OF FUNDS

Operating expenses through
break-even month 13

UNIVERSITY MARKET SHARE

Yr. 2: 100 Universities (2% market)
Yr. 5: 1,000 Universities (20% market)

TIME TO CLOSE A SALE

1 YEAR

BUSINESS START DATE

JAN 1ST, 2023

ITCAR

JAN 1st, 2023

*Forward-looking projections can't be guaranteed.

$10.95 is the industry standard for automated proctoring whereas live proctoring can cost from $15 to $30 per exam per student. The cost of the camera is conservatively forecasted to be absorbed by Zero Cheating. However, it is very likely this cost can be passed on to the university or end user nearly doubling gross profit. The operating expenses include marketing, website development, salaries, compliance documents, and legal contracts during the first 13 months. The average time to close a sale with a university is 9 months but the model conservatively assumes 1 year. The EBITDA multiple is rounded down to 10 from 12.34 since the company is private

(https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/vebitda.html).

## FINANCIAL
PROJECTED RESULTS

![img-0.jpeg](img-0.jpeg)

![img-1.jpeg](img-1.jpeg)

| Financial Projections | 2023 | 2024 | 2025 | 2026 | 2027 |
| --- | --- | --- | --- | --- | --- |
| Revenue | $ - | $4,292,400 | $11,807,502 | $26,725,779 | $44,642,106 |
| Cost of Revenue | $ - | $1,960,000 | $5,169,800 | $11,612,100 | $19,349,400 |
| Gross Margin | $ - | $2,332,400 | $6,637,702 | $15,113,679 | $25,292,706 |
| Operating Expenses | $687,500 | $2,206,360 | $3,033,247 | $4,701,407 | $5,783,961 |
| Operating Income - EBITDA | $(687,500) | $126,040 | $3,604,455 | $10,412,272 | $19,508,745 |

*Forward-looking projections can’t be guaranteed.

The pro-forma is the most conservative successful scenario. The market share is assumed to only be 20% (optimistic scenario is we overtake Respondus as the market leader at 60%). Additionally, the forecast assumes Zero Cheating pays the entire cost of the camera (Cost of revenue line) whereas that cost ($5/camera) can likely be passed on to either the university or student. If we achieve the optimistic scenario (60% market share and passing the cost of the camera) the exit multiple would be over 100x.

# ZERO CHEATING
PROGRESS TO DATE

ZERO CHEATING HAS ACHIEVED THE FOLLOWING MILESTONES:

1 $75,000 Investment by Founder to date (Excludes Reg CF)
2 Filed non-provisional utility patent
3 Developed an MVP prototype camera and software solution
4 Started preliminary negotiations with over 45 Universities

![img-2.jpeg](img-2.jpeg)

I personally have invested over $75,000 in the business for the patent, business planning, software and prototype development. I invested my money in this business because I believe in the mission and the importance of protecting academic integrity. We have the right team in place and are ready to launch this business and transform the online exam proctoring industry. No longer will proctoring be about catching students cheating. Instead, we are creating an

environment where students can't cheat and instead are motivated to learn the material.

![img-3.jpeg](img-3.jpeg)

I greatly appreciate your time and consideration in investing the academic future of our country and eventually the world.

![img-4.jpeg](img-4.jpeg)

| DESCRIPTION | QTY | RATE | AMOUNT |
| --- | --- | --- | --- |
| Enterprise \| Auto \| Year 2: 03/16/2021 - 03/15/2022 \| $11.00 users x 32,251 users | 32,251 | 11.00 | 354,761.00 |

Obtained via public records request

$354,761

*Forward-looking projections can't be guaranteed.

A single contract for the automated service (No human involvement) can be in excess of $350,000. None of the existing contracts are exclusive so universities are free to switch providers. We are making FOIA requests to over 100 public universities, so we know exactly who they are paying, how much and the specific contractual agreement as well. This information enables us to negotiate quickly and efficiently, the best deal possible.

**Attachment 3:** `document_3.pdf`

# **Zero Cheating II (THE "SPV"),**
a series of Wefunder SPV, LLC, a Delaware limited
liability company (the "LLC")

# **Subscription Agreement**

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**Zero Cheating II (the "SPV"),** a series of Wefunder SPV, LLC (the "LLC"), is a special purpose vehicle that will invest all of its assets in securities issued by **Zero Cheating, Inc** (the "Company"). By making an investment in the SPV through the Wefunder website, I understand and agree to the representations set forth below.

I have reviewed the following information and documents in connection with this Subscription Agreement:

1. The information on the Wefunder website about the Company. I acknowledge that this information was prepared solely by either the Company or a third party whose work has been verified by the Company, and that none of Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or Wefunder Advisors, LLC, nor any of their affiliates, employees or agents, are responsible for the adequacy, completeness, or accuracy of this information;
2. The Form C relating to this investment, which provides information about investment in the Company through the use of the SPV;
3. The Series Appendix, an appendix to the Wefunder SPV, LLC limited liability company agreement (the "**LLC Agreement**"), which sets forth certain specific terms of the SPV;
4. The Terms Appendix, which summarizes the terms of the Company securities to be purchased by the SPV;
5. The LLC Agreement, which sets forth other terms applicable to each SPV;
6. This Subscription Agreement, which sets forth the terms governing your investment in the SPV, and that sets forth certain representations you are making in connection with your investment in the SPV;
7. The Wefunder Investor Agreement; and
8. The Wefunder Terms of Service.

**By making an investment in the SPV through the Wefunder website, I agree to be bound by this Subscription Agreement and the terms of the other agreements listed above with respect to my investment in the SPV.**

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY REPRESENTATIONS

A. This agreement ("Agreement") applies to each investment in a series ("SPV") of Wefunder SPV, LLC (the "LLC"). Each series is a separate pool of assets from every other series. Each SPV will invest all of its assets in securities issued by a single company ("Company") as set forth in the applicable series appendix ("Series Appendix") to the Wefunder SPV, LLC limited liability company agreement ("LLC Agreement"). The terms of the Company securities to be purchased by the SPV are summarized in an appendix ("Terms Appendix") attached to this Agreement.
B. Each SPV is formed by and operated by Wefunder Admin, LLC on behalf of the Company in whose securities that SPV invests.
C. Important information about the Company, about the related SPV, and more generally about investments through the Wefunder website, is available through the Wefunder website. The Investor should review that information, and all relevant Company Information (as defined below), carefully before making an investment in any SPV.
D. Each SPV will offer membership interests ("Interests") in that SPV pursuant to Regulation Crowdfunding under the U.S. Securities Act of 1933, as amended (the "Securities Act").
E. You hereby agree that each time you make an investment in any SPV, you will be deemed to have entered into this Agreement, and will be deemed to have made each representation and covenant contained in this Agreement.
F. Except as the context otherwise requires, any reference in this Subscription Agreement to:

1. a "SPV" shall mean "The LLC acting solely on behalf of and for the account of the SPV";
2. "Investor" and "you" shall mean a person (whether individually, jointly with another person, or through his or her individual retirement account) who has agreed to invest, or has invested, in any SPV; and
3. "Company Information" means:

a. The information on the Wefunder website about the Company. I acknowledge that this information was prepared solely by either the Company or a third party whose work has been verified by the Company, and that neither Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or Wefunder Advisors, LLC (together, the "Wefunder entities," nor any of their affiliates, employees or agents, are responsible for the adequacy, completeness, or accuracy of this information;
b. The Form C relating to this investment, which provides information about investment in the Company through the use of the SPV;
c. The Series Appendix, an appendix to the Wefunder SPV, LLC limited liability company agreement (the "LLC Agreement"), which sets forth certain specific terms of the SPV;
d. The Terms Appendix, which summarizes the terms of the Company securities to be purchased by the SPV;
e. The LLC Agreement, which sets forth other terms applicable to each SPV;
f. This Subscription Agreement, which sets forth the terms governing your investment in the SPV, and that sets forth certain representations you are making in connection with your investment in the SPV;
g. The Wefunder Investor Agreement; and
h. The Wefunder Terms of Service.

INVESTOR'S REPRESENTATIONS AND COVENANTS

1. Investor's Review of Information and Investment Decision

1.1. The Investor has carefully read and understands the Company Information. The Investor acknowledges that it has made an independent decision to invest indirectly in the Company through the SPV and that, in making its decision to invest in a SPV, the Investor has relied solely upon the Company Information, any other relevant information on the Wefunder website, and independent investigations made by the Investor. The Investor understands that no representations or warranties have been made to the Investor by the LLC, the relevant SPV, any administrator appointed from time to time with respect to the SPV (the "Administrator"), any lead investor appointed from time to time with respect to the SPV (the "Lead Investor"), or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them regarding the Company.

1.2. The Investor has been provided an opportunity to request additional information concerning the Company and the offering through the Ask A Question feature on wefunder.com.

1.3. The Investor understands and agrees that neither Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC, any of their affiliates, nor any director, manager, officer, shareholder, member, employee or agent of Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or any of their affiliates (each, a "Wefunder Party," and collectively, "Wefunder Parties") shall be liable in connection with any information or omission of information contained in materials prepared or supplied by the Company. Such materials may include, but are not limited to, information provided by the Company in the Form C related to the offering, information available through the Wefunder website, and materials distributed to the Investor by the SPV on behalf of a Company.

1.4. The Investor represents and agrees that no Wefunder Party has recommended or suggested any investment in a SPV, or any investment related to a Company, to the Investor.

1.5. Investor understands that no Wefunder Party is an adviser to Investor, and that Investor is not an advisory or other client of any Wefunder Party.

1.6. The Investor is not relying on any Wefunder Party or any other person or entity with respect to the legal, accounting, business, investment, pension, tax or other economic considerations involved in this investment other than the Investor's own advisers that are not affiliated with any of the foregoing persons.

1.7. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of the Investor's investment in the SPV and is able to bear such risks. The Investor has obtained, in the Investor's judgment, sufficient information to evaluate the merits and risks of such investment. The Investor has evaluated the risks of investing in the SPV, understands there are substantial risks of loss incidental to the purchase of an Interest and has determined that the Interest is a suitable investment for the Investor and consistent with the general investment objectives of the Investor.

## 2. Investor's Representations Related To Investment in a SPV.

2.1. The Investor is acquiring the Interest for its own account, for investment purposes only and not with an intent to resell or distribute the Interest (or any distributions received from the SPV in whole or in part), and the Investor agrees that it will not sell or otherwise transfer the Interest unless in compliance with Regulation Crowdfunding and other applicable securities laws, and with the terms and conditions of this Agreement.

2.2. The Investor's investment in the Interest is consistent with the investment purposes, objectives and cash flow requirements of the Investor and will not adversely affect the Investor's overall need for diversification and liquidity.

2.3. The Investor has all requisite power, authority and capacity to acquire and hold the Interest and to execute, deliver and comply with the terms of each of the instruments required to be executed and delivered by the Investor in connection with the Investor's subscription for the Interest, including without limitation this Subscription Agreement, and such execution, delivery and compliance does not conflict with, or constitute a default under, any instruments governing the Investor, any law, regulation or order, or any agreement or other undertaking to which the Investor is a party or by which the Investor may be bound. If the Investor is an entity, the person executing and delivering each of such instruments on behalf of the Investor has all requisite power, authority and capacity to execute and deliver such instruments, and, upon request by the SPV, will furnish to the SPV a true and correct copy of any instruments governing the Investor, including all amendments thereto. The signature on each of such instruments is genuine and each of such instruments constitutes a legal, valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms.

2.4. The Wefunder Parties are each hereby authorized and instructed to accept and execute any instructions in respect of the Interest given by the Investor in written or electronic form. The Wefunder Parties may rely conclusively upon and shall incur no liability in respect of any action taken upon any notice, consent, request, instructions or other instrument believed in good faith to be genuine or to be signed by properly authorized persons of the Investor.

2.5. Pursuant to the requirements of Treas. Reg. § 301.6109-1(c), the Investor has provided, or agrees to provide upon the earlier of (i) two years of an acquisition of an Interest or (ii) twenty (20) days before any distribution is to be made from the SPV, his, her or its taxpayer identification number (e.g., social security number or employer identification number) under penalties of perjury and has or will attest that the Internal Revenue Service has not notified the Investor that he, she or it is subject to backup withholding.

## 3. The Manager Has The Right To Reject Any Subscription, In Whole Or In Part.

3.1. The Investor understands that the SPV will not register as an investment company under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act"), nor will it make a public offering of its securities within the United States.

3.2. The Investor understands that the value of all investments in any SPV made through individual retirement accounts ("IRAs") must be less than 25% of the value of the SPV's assets.

3.3. If the Investor is investing in a SPV through an employee benefit plan of any kind, including an individual retirement account (the "Plan"), and an individual or entity (the "Fiduciary") has entered into this Agreement on behalf of the Plan, the Fiduciary hereby makes the following representations, warranties, and covenants:

i. The Fiduciary is a fiduciary of the Plan who is authorized to invest Plan assets or is acting at the direction of a Plan fiduciary authorized to invest Plan assets. The Fiduciary has determined that an investment in the Fund is consistent with the Fiduciary's responsibilities to the Plan under Employee Retirement Income Security Act of 1974, as amended ("ERISA") or other applicable law, and is qualified to make such investment decision. The Fiduciary is authorized to make all representations, covenants and agreements set forth in this Agreement about and on behalf of the Investor, and the Fiduciary hereby agrees that, except for the representations, covenants and agreements contained in this section 3.3, all representations, covenants and agreements contained in this Agreement are made on behalf of the Investor who is investing through the Plan.

ii. The execution and delivery of this Subscription Agreement, and the investment contemplated hereby has been duly authorized by all appropriate and necessary parties pursuant to the provisions of the instrument or instruments governing the Plan and any related trust; and (B) will not violate, and is not otherwise inconsistent with, the terms of such instrument or instruments.

iii. The Fiduciary acknowledges that the assets of the Fund will be invested in accordance with the Company Information related to that Fund.

iv. The Plan's purchase and holding of an Interest will not constitute a non-exempt transaction prohibited under ERISA, Section 4975 of the Internal Revenue Code (the "Code"), or any similar laws or other federal, state, local, foreign or other laws or regulations applicable to the Plan and its investments. None of the Wefunder entities nor any of their affiliates, agents, or employees: (A) exercises any authority or control with respect to the management or disposition of assets of the Plan used to purchase an Interest, (B) renders investment advice for a fee (pursuant to an agreement or understanding that such advice will serve as a primary basis for investment decisions and that such advice will be based on the particular investment needs of the Plan), with respect to such assets of the Plan, or has the authority to do so, or (C) is an employer maintaining or contributing to, or any of whose employees are covered by, the Plan.

v. The Fiduciary understands and agrees to the fee arrangements described in the Company Information.

vi. The Fiduciary understands and agrees that, to prevent the assets of the SPV from being treated as "plan assets" for purposes of ERISA and Section 4975 of the Code, the Investor may be prohibited from purchasing or acquiring an Interest or may be required to redeem its Interest or a portion thereof.

3.4. The Investor acknowledges that the SPV and any Administrator, on the SPV's behalf, may not accept any investment from an Investor if the Investor cannot truthfully make the representations contained herein.

# 4. The Correctness And Accuracy Of All Information Provided By Investor To The LLC Or The SPV.

4.1. The Investor confirms that all information and documentation provided to the LLC, the SPV, and any Administrator, including, but not limited to, all information regarding the Investor's identity, taxpayer identification number, the source of the funds to be invested in the SPV, and the Investor's eligibility to invest in offerings under Regulation Crowdfunding, is true, correct and complete. Should any such information change or no longer be accurate, the Investor agrees and covenants that they will promptly notify the Wefunder Parties of such changes via the wefunder.com platform. The Investor agrees and covenants that he, she or it will maintain accurate and up-to-date contact information (including email and mailing address) on the wefunder.com platform and will promptly update such information in the event it changes or is no longer accurate.

4.2. The representations, warranties, agreements, undertakings and acknowledgments made by the Investor in this Subscription Agreement will be relied upon by the LLC, the SPV, and any Administrator in determining the Fund's compliance with federal and state securities laws, and shall survive the Investor's admission as a Member of the SPV.

4.3. All information that the Investor has provided to the LLC, the SPV, and any Administrator concerning the knowledge and experience of financial, tax and business matters of the Investor is correct and complete.

# 5. The Wefunder Parties' Right To Use Investor Information.

5.1. The Investor agrees and consents to the Wefunder Parties, their delegates and their duly authorized agents and any of their respective related, associated or affiliated companies obtaining, holding, using, disclosing and processing the Investor's data:

a. to facilitate the acceptance, management and administration of the Investor's subscription for an Interest on an on-going basis;
b. for any other specific purposes where the Investor has given specific consent to do so;
c. to carry out statistical analysis, market research, and tracking of investment performance over time;
d. to comply with legal or regulatory requirements applicable to the SPV and any Administrator or the Investor, including, but not limited to, in connection with anti-money laundering and similar laws;
e. for disclosure or transfer to third parties including the Investor's financial adviser (where appropriate), regulatory bodies, auditors, technology providers or to the SPV, any Administrator, any Lead Investor, and their delegates or their duly appointed agents and any of their respective related, associated or affiliated companies for the purposes specified above;
f. if the contents thereof are relevant to any issue in any action, suit or proceeding to which the LLC, the SPV, any Administrator, any Lead Investor, or their affiliates are a party or by which they are or may be bound;
g. for other legitimate business of the LLC, the SPV, any Administrator, or any Lead Investor.

5.2. The Investor acknowledges and agrees that it will provide additional information or take such other actions as may be necessary or advisable for the SPV or any Administrator (in the sole judgment of the SPV and/or any Administrator) to comply with any disclosure and compliance policies, related legal process or appropriate requests (whether formal or informal) or otherwise.
5.3. The Investor agrees and consents to disclosure by the LLC, the SPV and any of their agents, including any Administrator or any Lead Investor, to relevant third parties of information pertaining to the Investor in respect of disclosure and compliance policies or information requests related thereto. Without limiting the generality of the foregoing, the Investor agrees that information about the Investor may be provided to the Company in whose securities a SPV will or proposes to invest.
5.4. The Investor authorizes the LLC, the SPV, any Administrator, and each SPV service provider to disclose the Investor's nonpublic personal information to comply with regulatory and contractual requirements applicable to the SPV and its investments. Any such disclosure shall be permitted notwithstanding any privacy policy or similar restrictions regarding the disclosure of the Investor's nonpublic personal information.

# 6. Key Risk Factors

6.1. The Investor understands that investment in a SPV may involve a complete loss of the Investor's investment. In this regard, the Investor understands that such venture investments involve a high degree of risk, and that many or most venture company investments lose money. An Investor may ultimately receive cash, securities, or a combination of cash and securities (and in many cases nothing at all). If the Investor receives securities, the securities may not be publicly traded, and may not have any significant value.

6.2. The Investor understands and agrees that the Interests are subject to restrictions on transfer and cannot be redeemed. Instead, an Investor typically must hold his or her Interest in a SPV until the SPV has sold or otherwise disposed of its investments and the SPV distributes its investments to the investors in the SPV (a "Liquidation Event"). An Investor typically will not receive any distributions until such a Liquidation Event (and may not receive anything even upon a Liquidation Event), which may not occur for many years. The Investor must therefore bear the economic risk of holding their investment for an indefinite period of time.

6.3. The Investor understands and agrees that the Interests: (a) have not been registered under the Securities Act or any other law of the United States, or under the securities laws of any state or other jurisdiction, and therefore an Interest cannot be resold, pledged, assigned or otherwise disposed of unless it is so registered or an exemption from registration is available; and (b) can only be transferred as permitted under Regulation Crowdfunding and subject to the terms and conditions of this Agreement.

6.4. The Investor understands that no guarantees have been made to the Investor about future performance or financial results of the SPV, and an investment in the SPV may result in a gain or loss upon termination or liquidation of the SPV. It is possible that the investors in a SPV will have "phantom income," which could require them to pay taxes on their investment in a SPV even though the SPV does not distribute any income (or does not distribute sufficient income to pay the taxes).

6.5. The Investor understands and agrees that the SPV was formed by and is operated by Wefunder Admin, LLC on behalf of the Company. Investors will have no right to manage or influence the management of any SPV or of the LLC.

6.6. The Investor understands and agrees that the Company may appoint a Lead Investor and that, if appointed, pursuant to a power of attorney granted by the Investor in the Investor Agreement, the Lead Investor will exercise voting authority on behalf of the Investor with respect to the SPV securities the Investor owns.

6.7. The Investor represents that he or she has read and understands the risk factors contained in the Company Information. The Investor understands and agrees that each Company is solely responsible for providing risk factors, conflicts of interest, and other disclosures that investors should consider when investing in securities issued by that Company (including through a SPV), and that the Wefunder Parties have no ability to assure, and have not in any way assured, that any or all such risk factors, conflicts of interest and other disclosures have been presented fully and fairly, or have been presented at all.

6.8. The Investor understands that any privacy statements, reports or other communications regarding the SPV and the Investor's investment in the SPV (including annual and other updates, and tax documents) will be delivered via electronic means, including through wefunder.com. The Investor hereby consents to electronic delivery as described in the preceding sentence. In so consenting, the Investor acknowledges that email messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with, with or without the knowledge of the sender or the intended recipient. The Investor also acknowledges that an email from the Wefunder Parties may be accessed by recipients other than the Investor and may be interfered with, may contain computer viruses or other defects and may not be successfully replicated on other systems. No Wefunder Party gives any warranties in relation to these matters.

6.9. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number under penalties of perjury, and attest that the Investor has not been notified by the Internal Revenue Service that he, she or it is subject to backup withholding, the SPV will be required to withhold from any proceeds otherwise payable to the Investor an amount necessary to satisfy the SPV's backup withholding obligations.

6.10. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number to the SPV, the SPV will withhold from any proceeds otherwise payable to the Investor an amount necessary for the SPV to satisfy its tax withholding obligations with respect to such amount. The SPV may also withhold any other amounts representing the SPV's reasonable estimation of penalties that may be charged by the Internal Revenue Service or any other taxing authority as a result of the Investor's failure to provide a valid taxpayer identification number.

## 7. Compliance With Anti-Money Laundering Laws.

7.1. The Investor represents and warrants that the Investor's investment was not directly or indirectly derived from illegal activities, including any activities that would violate U.S. Federal or State laws or any laws and regulations of other countries.

7.2. The Investor acknowledges that U.S. Federal law, regulations and Executive Orders administered by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") may prohibit the SPV, any Administrator, or any Lead Investor from, among other things, engaging in transactions with, and the provision of services to, persons on the list of Specially Designated Nationals and Blocked Persons and persons, foreign countries and territories that are the subject of U.S. sanctions administered by OFAC (collectively, the "OFAC Maintained Sanctions").

7.3. The Investor acknowledges that the SPV prohibits the investment of funds by any persons or entities that are (i) the subject of OFAC Maintained Sanctions, (ii) acting, directly or indirectly, in contravention of any applicable laws and regulations, including anti-money laundering regulations or conventions, or on behalf of persons or entities subject to an OFAC Maintained Sanction, (iii) acting, directly or indirectly, for a senior foreign political figure, any member of a senior foreign political figure's immediate family or any close associate of a senior foreign political figure, unless the SPV, after being specifically notified by the Investor in writing that it is such a person, conducts further due diligence, and determines that such investment shall be permitted, or (iv) acting, directly or indirectly, for a foreign shell bank (such persons or entities in (i) - (iv) are collectively referred to as "Prohibited Persons"). The Investor represents and warrants that it is not, and is not acting directly or indirectly on behalf of, a Prohibited Person.

7.4. To the extent the Investor has any beneficial owners, (i) it has carried out thorough due diligence to establish the identities of such beneficial owners, (ii) based on such due diligence, the Investor reasonably believes that no such beneficial owners are Prohibited Persons, (iii) it holds the evidence of such identities and status and will maintain all such evidence for at least five years from the date of the liquidation or termination of the SPV, and (iv) it will make available such information and any additional information requested by the SPV that is required under applicable regulations.

7.5. The Investor acknowledges and agrees that the SPV or any Administrator may "freeze the account" of the Investor, including, but not limited to, by suspending distributions from the SPV to which the Investor would otherwise be entitled, if necessary to comply with anti-money laundering statutes or regulations.

7.6. The Investor acknowledges and agrees that the SPV and/or any Administrator, in complying with anti-money laundering statutes, regulations and goals, may file voluntarily and/or as required by law suspicious activity reports ("SARs") or any other information with governmental and law enforcement agencies that identify transactions and activities that the SPV or any Administrator or their agents reasonably determine to be suspicious, or is otherwise required by law. The Investor acknowledges that the LLC, the SPV, and any Administrator are prohibited by law from disclosing to third parties, including the Investor, any filing or the substance of any SARs.

7.7. The Investor agrees that, upon the request of the LLC, the SPV, or any Administrator, it will provide such information as the LLC, the SPV, or any Administrator requires to satisfy applicable anti-money laundering laws and regulations, including, without limitation, background documentation about the Investor

## 8. Regulatory Provisions

8.1. The Investor understands that no federal or state agency has passed upon the Interests or made any findings or determination as to the fairness of this investment.

8.2. The Investor certifies that the information contained in the executed copy of Form W-9 submitted to the SPV (if any) and/or the taxpayer identification provided to the SPV is correct. The Investor agrees to provide such other documentation as the SPV determines may be necessary for the SPV to fulfill any tax reporting and/or withholding requirements.

8.3. The Investor understands and agrees that the Company may cause the SPV to make an election under Section 754 of the Internal Revenue Code (the "Code") or an election to be treated as an "electing investment partnership" for purposes of Section 743 of the Code. If the SPV elects to be treated as an electing investment partnership, the Investor shall cooperate with the SPV to maintain that status and shall not take any action that would be inconsistent with such election. Upon request, the Investor shall provide the SPV with any information necessary to allow the SPV to comply with (a) its obligations to make tax basis adjustments under Section 734 or 743 of the Code and (b) its obligations as an electing investment partnership.

8.4. The Investor consents to receive any Schedule K-1 (Partner's Share of Income, Deductions, Credits, etc.) from the SPV electronically via email, the Internet and/or another electronic reporting medium in lieu of paper copies. The Investor agrees that it will confirm this consent electronically at a future date in a manner set forth by the Company at such time and as required by the electronic receipt consent rules set forth by the Internal Revenue Service. The Investor may request a paper copy of the Investor's Schedule K-1 by contacting Wefunder Inc. at support@wefunder.com or such other email address as specified on the wefunder.com platform. Requesting a paper copy will not constitute a withdrawal of the Investor's consent to receive reports or other communications, including Schedule K-1, electronically. The Investor may withdraw its consent for electronic delivery or change its contact preferences for such delivery at any time by writing to support@wefunder.com or such other email address as specified on the wefunder.com platform. Such withdrawal will take effect promptly after receipt, unless otherwise agreed upon. Upon receipt of a withdrawal request, the SPV will confirm the withdrawal and the date on which it takes effect in writing (either electronically or on paper). A withdrawal of consent does not apply to a statement that was furnished electronically before the date on which the withdrawal of consent takes effect. The SPV will cease providing information electronically upon termination of the SPV. Notwithstanding the Investor's consent to receive materials electronically, the Investor still may be required to print and attach its Schedule K-1 to a federal, state or local tax return.

## 9. Miscellaneous Provisions

## 9.1. Indemnification

9.1.1. The Investor agrees to indemnify and hold harmless the LLC, the SPV, any Administrator, any Lead Investor, or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them, and each other person, if any, who controls, is controlled by, or is under common control with, any of the foregoing, within the meaning of Section 15 of the Securities Act, and their respective officers, directors, partners, members, shareholders, owners, employees and agents (collectively, the "Indemnified Parties") against any and all loss, liability, claim, damage and expense whatsoever (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) arising out of or based upon (i) any false representation or warranty made by the Investor, or breach or failure by the Investor to comply with any covenant or agreement made by the Investor, in this Subscription Agreement or in any other document furnished by the Investor to any of the foregoing in connection with this transaction, or (ii) any action for securities law violations instituted by the Investor that is finally resolved by judgment against the Investor.

9.1.2. The Investor also agrees to indemnify each Indemnified Party for any and all costs, fees and expenses (including legal fees and disbursements) in connection with any damages resulting from the Investor's misrepresentation or misstatement contained herein, or the assertion of the Investor's lack of proper authorization from the beneficial owner to enter into this Subscription Agreement or perform the obligations hereof.

9.1.3. The Investor agrees to indemnify and hold harmless each Indemnified Party from and against any tax, interest, additions to tax, penalties, reasonable attorneys' and accountants' fees and disbursements, together with interest on the foregoing amounts at a rate determined by the SPV or any Administrator computed from the date of payment through the date of reimbursement, arising from the failure to withhold and pay over to the U.S. Internal Revenue Service or the taxing authority of any other jurisdiction any amounts computed, as required by applicable law, with respect to the income or gains allocated to or amounts distributed to the Investor with respect to its Interest during the period from the Investor's acquisition of the Interest until the Investor's transfer of the Interest in accordance with this Agreement, the LLC Agreement, and Regulation Crowdfunding.

9.1.4. If for any reason (other than the willful misfeasance or gross negligence of the entity that would otherwise be indemnified) the foregoing indemnification is unavailable to, or is insufficient to hold such Indemnified Party harmless, then the Investor shall contribute to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the Investor on the one hand and the Indemnified Parties on the other but also the relative fault of the Investor and the Indemnified Parties, as well as any relevant equitable considerations.

9.1.5. The reimbursement, indemnity and contribution obligations of the Investor under this section shall be in addition to any liability that the Investor may otherwise have, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Indemnified Parties.

9.2. **Limitation of Liability.** The LLC is a Delaware "multi-series" limited liability company. As a multi-series limited liability company, the LLC may operate multiple series with the benefit of segregation of assets and liabilities among each of its series pursuant to the Delaware Limited Liability Company Act, as amended (the "**Delaware Act**"). Accordingly, the Investor hereby agrees that the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a series (including the SPV) shall be enforceable against the assets of that series only and not against the LLC generally or the assets of any other series. In addition, none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the LLC generally, or any particular series, shall be enforceable against the assets of any other series.

9.3. **Counsel.** The Investor understands that Morrison & Foerster LLP serves as legal counsel on certain matters to Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC and Wefunder Advisors, LLC and not to the SPV or any Investor by virtue of its investment in the SPV, and that no independent counsel has been retained to represent the SPV or Investors in the SPV. The Investor also understands that Morrison & Foerster LLP has not independently verified any factual assertions made in the Company Information or on the Wefunder website and is not responsible for the SPV's compliance with its investment program or applicable law.

9.4. **Power of Attorney.** The Investor hereby appoints each of the Company and Wefunder Admin, LLC as its true and lawful representative and attorney-in-fact, in its name, place and stead to make, execute, sign, acknowledge, swear to and file:

9.4.1. a Certificate of Formation of the LLC and any amendments required under the Delaware Act
9.4.2. the LLC Agreement and any duly adopted amendments;
9.4.3. any and all instruments, certificates and other documents that may be deemed necessary or desirable to effect the winding-up and termination of the LLC or the SPV (including a Certificate of Cancellation of the Certificate of Formation); and
9.4.4. any business certificate, fictitious name certificate, related amendment or other instrument or document of any kind necessary or desirable to accomplish the LLC's or the SPV's business, purpose and objectives or required by any applicable U.S., state, local or other law.

This power of attorney is coupled with an interest, is irrevocable, and shall survive and shall not be affected by the subsequent death, disability, incompetency, termination, bankruptcy, insolvency or dissolution of the Investor; provided, however, that this power of attorney will terminate upon the substitution of another SPV member for all of the Investor's investment in the LLC or the SPV or upon the liquidation or termination of the LLC or the SPV. The Investor hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of the LLC, the SPV, and any Administrator taken in good faith under this power of attorney.

## 9.5. Confidentiality

9.5.1. The Investor agrees that the Company Information and all financial statements (if any), tax reports (if any), portfolio valuations (if any), private placement memoranda (if any), reviews or analyses of potential or actual investments (if any), reports or other materials prepared or produced by the SPV and/or any Administrator and all other documents and information concerning the affairs of the SPV and/or the Fund's investments, including, without limitation, information about the Company, and/or the persons directly or indirectly investing in the SPV (collectively, the "Confidential Information") that the Investor may receive pursuant to or in accordance with the use of the Wefunder website, an investment in one or more SPVs, or otherwise as a result of its ownership of an interest in the SPV, constitute proprietary and confidential information about the SPV, any Administrator, and/or any Lead Investor (the "Affected Parties").

9.5.2. The Investor acknowledges that the Affected Parties derive independent economic value from the Confidential Information not being generally known and that the Confidential Information is the subject of reasonable efforts to maintain its secrecy. The Investor further acknowledges that the Confidential Information is a trade secret, the disclosure of which is likely to cause substantial and irreparable competitive harm to the Affected Companies or their respective businesses. The Investor shall not reproduce any of the Confidential Information or portion thereof or make the contents thereof available to any third party other than a disclosure on a need-to-know basis to the Investor's legal, accounting or investment advisers, auditors and representatives (collectively, "Advisers"), except to the extent compelled to do so in accordance with applicable law (in which case the Investor shall promptly notify the SPV of the Investor's obligation to disclose any Confidential Information) or with respect to Confidential Information that otherwise becomes publicly available other than through breach of this provision by the Investor.

9.5.3. To the fullest extent permitted by law, the Investor agrees not to request disclosure or inspection of any such information after the Investor is notified (whether in response to the Investor's request for information or otherwise) that the SPV has determined not to disclose such information.

9.5.4. The Investor agrees that the LLC, the SPV, and the SPV service providers would be subject to potentially irreparable injury as a result of any breach by the Investor of the covenants and agreements set forth in this Item 9.5, and that monetary damages would not be sufficient to compensate or make whole the LLC, the SPV, and the SPV services providers for any such breach. Accordingly the Investor agrees that the LLC, the SPV, and the SPV service providers shall be entitled to equitable and injunctive relief, on an emergency, temporary, preliminary and/or permanent basis, to prevent any such breach or the continuation thereof.

9.6. Amendments. Neither this Subscription Agreement nor any term hereof may be supplemented, changed, waived, discharged or terminated except with the written consent of the Investor and the Company on behalf of the relevant SPV. For the sake of clarity, the restriction on the Company in the preceding sentence applies solely to the form of this Subscription Agreement applicable to SPVs that have had a closing, and does not prevent the Company from changing the form and content of this Subscription Agreement for use in offerings of SPVs that have not had a closing.

9.7. Assignability and Transferability. This Subscription Agreement is not transferable or assignable by the Investor without the prior written consent of the Company on behalf of the SPV, and any transfer or assignment in violation of this provision shall be null and void. The Interests in the SPV being acquired by Investor herein may only be transferred by Investor in compliance with Regulation Crowdfunding and the terms and conditions of this Agreement. If Investor seeks to transfer the Interests, Investor shall first give written notice to the Company and Wefunder Admin, LLC, including the number of Interests that Investor desires to transfer, the proposed price, the name and contact information of the proposed buyer, and any other information that the Company or Wefunder Admin, LLC may reasonably request. To the extent possible, such notice shall be provided through the Wefunder.com website. Any transfer of Interests shall be subject to execution by Investor and the proposed transferee of appropriate documentation, as may be required by the Company or Wefunder Admin, LLC, in their discretion. Investor further acknowledges that pursuant to the LLC Agreement, Wefunder Admin, LLC (as Series Manager of the SPV), may impose additional restrictions on or prohibit the Transfer of Interests for any reason or no reason, in its sole discretion.

9.8. Repurchase. In the event that the SPV or any Administrator determines that it is likely that within twelve (12) months the securities of the SPV or the Company will be held of record by a number of persons that would require the SPV or the Company to register a class of its equity securities under the Securities Exchange Act of 1934, as amended ("Exchange Act"), as required by Section 12(g) or 15(d) thereof, the SPV shall have the option to repurchase the Interests from each Investor to the extent necessary to avoid the requirement to register a class of its securities under the Exchange Act. Such repurchase of Interests shall be for the greater of (i) the purchase price of the Interests, or (ii) the fair market value of the Interests, as determined by an independent appraiser of securities chosen by the Administrator. Any such repurchase may only occur with the consent of Wefunder Admin, LLC, as Series Manager of the SPV.

9.9. Governing Law. Consent to Jurisdiction. Notwithstanding the place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be construed under the laws of the State of Delaware. Any action or proceeding brought by the SPV or any SPV service provider against one or more investors in the SPV relating in any way to this Subscription Agreement or the LLC Agreement may, and any action or proceeding brought by any other party against the SPV or any SPV service provider relating in any way to this Subscription Agreement or the Company Information shall, be brought and enforced in the state courts of the State of Delaware located in Wilmington or (to the extent subject matter jurisdiction exists therefore) in the courts of the United States located in the District of Delaware; and the Investor and the SPV irrevocably submit to the jurisdiction of both such state and federal courts in respect of any such action or proceeding. The Investor and the SPV irrevocably waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to laying the venue of any such action or proceeding in the courts of the State of Delaware located in Wilmington or in the courts of the United States located in the District of Delaware and any claim that any such action or proceeding brought in any such court has been brought in an inconvenient forum.

9.10. Severability. If any provision of this Subscription Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof that may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and to this extent the provisions hereof shall be severable.

9.11. Headings. The headings in this Subscription Agreement are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof.

9.12. General. This Subscription Agreement shall be binding upon the Investor and the legal representatives, successors and assigns of the Investor, shall survive the admission of the Investor as a member of a SPV, and shall, if the Investor consists of more than one person, be the joint and several obligation of all such persons.

[Remainder of page intentionally left blank. Signature page follows.]

The undersigned have executed this instrument as of the date first above written.

**SPV**

**Zero Cheating II, as series of Wefunder SPV, LLC**
**By: Wefunder Admin, LLC, its Manager**

By: *Founder Signature*

Date:

Name: **Nicholas Tommarello**

Title: **Chief Executive Officer**

**Investor**

**[INVESTOR NAME]**

By: *Investor Signature*

Date:

CONTACT INFORMATION:

Name: **[INVESTOR NAME]**

Mailing Address:

City:

Country:

E-mail:

# TERMS APPENDIX FOR THE PURCHASE OF Zero Cheating, Inc SECURITIES BY Zero Cheating II, A SERIES OF WEFUNDER SPV, LLC, A DELAWARE LIMITED LIABILITY COMPANY

Type of Security: Future Equity

Terms $5M valuation cap and 20% discount

To view a copy of the contract, please see Appendix B, Investor Contracts of the Form C. The latest Form C or C/A filing be found here:

https://www.sec.gov/cgi-bin/srch-edgar?text=%28FORM-TYPE%3DC%2FA+or+FORM-

TYPE%3DC%29+and+CIK%3D0001961710&first=2016

**Attachment 4:** `document_4.pdf`

# **Zero Cheating II EB (THE "SPV"),**
a series of Wefunder SPV, LLC, a Delaware limited
liability company (the "LLC")

# **Subscription Agreement**

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**Zero Cheating II EB (the "SPV"),** a series of Wefunder SPV, LLC (the "LLC"), is a special purpose vehicle that will invest all of its assets in securities issued by **Zero Cheating, Inc** (the "Company"). By making an investment in the SPV through the Wefunder website, I understand and agree to the representations set forth below.

I have reviewed the following information and documents in connection with this Subscription Agreement:

1. The information on the Wefunder website about the Company. I acknowledge that this information was prepared solely by either the Company or a third party whose work has been verified by the Company, and that none of Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or Wefunder Advisors, LLC, nor any of their affiliates, employees or agents, are responsible for the adequacy, completeness, or accuracy of this information;
2. The Form C relating to this investment, which provides information about investment in the Company through the use of the SPV;
3. The Series Appendix, an appendix to the Wefunder SPV, LLC limited liability company agreement (the "**LLC Agreement**"), which sets forth certain specific terms of the SPV;
4. The Terms Appendix, which summarizes the terms of the Company securities to be purchased by the SPV;
5. The LLC Agreement, which sets forth other terms applicable to each SPV;
6. This Subscription Agreement, which sets forth the terms governing your investment in the SPV, and that sets forth certain representations you are making in connection with your investment in the SPV;
7. The Wefunder Investor Agreement; and
8. The Wefunder Terms of Service.

**By making an investment in the SPV through the Wefunder website, I agree to be bound by this Subscription Agreement and the terms of the other agreements listed above with respect to my investment in the SPV.**

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY REPRESENTATIONS

A. This agreement ("Agreement") applies to each investment in a series ("SPV") of Wefunder SPV, LLC (the "LLC"). Each series is a separate pool of assets from every other series. Each SPV will invest all of its assets in securities issued by a single company ("Company") as set forth in the applicable series appendix ("Series Appendix") to the Wefunder SPV, LLC limited liability company agreement ("LLC Agreement"). The terms of the Company securities to be purchased by the SPV are summarized in an appendix ("Terms Appendix") attached to this Agreement.
B. Each SPV is formed by and operated by Wefunder Admin, LLC on behalf of the Company in whose securities that SPV invests.
C. Important information about the Company, about the related SPV, and more generally about investments through the Wefunder website, is available through the Wefunder website. The Investor should review that information, and all relevant Company Information (as defined below), carefully before making an investment in any SPV.
D. Each SPV will offer membership interests ("Interests") in that SPV pursuant to Regulation Crowdfunding under the U.S. Securities Act of 1933, as amended (the "Securities Act").
E. You hereby agree that each time you make an investment in any SPV, you will be deemed to have entered into this Agreement, and will be deemed to have made each representation and covenant contained in this Agreement.
F. Except as the context otherwise requires, any reference in this Subscription Agreement to:

1. a "SPV" shall mean "The LLC acting solely on behalf of and for the account of the SPV";
2. "Investor" and "you" shall mean a person (whether individually, jointly with another person, or through his or her individual retirement account) who has agreed to invest, or has invested, in any SPV; and
3. "Company Information" means:

a. The information on the Wefunder website about the Company. I acknowledge that this information was prepared solely by either the Company or a third party whose work has been verified by the Company, and that neither Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or Wefunder Advisors, LLC (together, the "Wefunder entities," nor any of their affiliates, employees or agents, are responsible for the adequacy, completeness, or accuracy of this information;
b. The Form C relating to this investment, which provides information about investment in the Company through the use of the SPV;
c. The Series Appendix, an appendix to the Wefunder SPV, LLC limited liability company agreement (the "LLC Agreement"), which sets forth certain specific terms of the SPV;
d. The Terms Appendix, which summarizes the terms of the Company securities to be purchased by the SPV;
e. The LLC Agreement, which sets forth other terms applicable to each SPV;
f. This Subscription Agreement, which sets forth the terms governing your investment in the SPV, and that sets forth certain representations you are making in connection with your investment in the SPV;
g. The Wefunder Investor Agreement; and
h. The Wefunder Terms of Service.

INVESTOR'S REPRESENTATIONS AND COVENANTS

1. Investor's Review of Information and Investment Decision

1.1. The Investor has carefully read and understands the Company Information. The Investor acknowledges that it has made an independent decision to invest indirectly in the Company through the SPV and that, in making its decision to invest in a SPV, the Investor has relied solely upon the Company Information, any other relevant information on the Wefunder website, and independent investigations made by the Investor. The Investor understands that no representations or warranties have been made to the Investor by the LLC, the relevant SPV, any administrator appointed from time to time with respect to the SPV (the "Administrator"), any lead investor appointed from time to time with respect to the SPV (the "Lead Investor"), or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them regarding the Company.

1.2. The Investor has been provided an opportunity to request additional information concerning the Company and the offering through the Ask A Question feature on wefunder.com.

1.3. The Investor understands and agrees that neither Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC, any of their affiliates, nor any director, manager, officer, shareholder, member, employee or agent of Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or any of their affiliates (each, a "Wefunder Party," and collectively, "Wefunder Parties") shall be liable in connection with any information or omission of information contained in materials prepared or supplied by the Company. Such materials may include, but are not limited to, information provided by the Company in the Form C related to the offering, information available through the Wefunder website, and materials distributed to the Investor by the SPV on behalf of a Company.

1.4. The Investor represents and agrees that no Wefunder Party has recommended or suggested any investment in a SPV, or any investment related to a Company, to the Investor.

1.5. Investor understands that no Wefunder Party is an adviser to Investor, and that Investor is not an advisory or other client of any Wefunder Party.

1.6. The Investor is not relying on any Wefunder Party or any other person or entity with respect to the legal, accounting, business, investment, pension, tax or other economic considerations involved in this investment other than the Investor's own advisers that are not affiliated with any of the foregoing persons.

1.7. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of the Investor's investment in the SPV and is able to bear such risks. The Investor has obtained, in the Investor's judgment, sufficient information to evaluate the merits and risks of such investment. The Investor has evaluated the risks of investing in the SPV, understands there are substantial risks of loss incidental to the purchase of an Interest and has determined that the Interest is a suitable investment for the Investor and consistent with the general investment objectives of the Investor.

## 2. Investor's Representations Related To Investment in a SPV.

2.1. The Investor is acquiring the Interest for its own account, for investment purposes only and not with an intent to resell or distribute the Interest (or any distributions received from the SPV in whole or in part), and the Investor agrees that it will not sell or otherwise transfer the Interest unless in compliance with Regulation Crowdfunding and other applicable securities laws, and with the terms and conditions of this Agreement.

2.2. The Investor's investment in the Interest is consistent with the investment purposes, objectives and cash flow requirements of the Investor and will not adversely affect the Investor's overall need for diversification and liquidity.

2.3. The Investor has all requisite power, authority and capacity to acquire and hold the Interest and to execute, deliver and comply with the terms of each of the instruments required to be executed and delivered by the Investor in connection with the Investor's subscription for the Interest, including without limitation this Subscription Agreement, and such execution, delivery and compliance does not conflict with, or constitute a default under, any instruments governing the Investor, any law, regulation or order, or any agreement or other undertaking to which the Investor is a party or by which the Investor may be bound. If the Investor is an entity, the person executing and delivering each of such instruments on behalf of the Investor has all requisite power, authority and capacity to execute and deliver such instruments, and, upon request by the SPV, will furnish to the SPV a true and correct copy of any instruments governing the Investor, including all amendments thereto. The signature on each of such instruments is genuine and each of such instruments constitutes a legal, valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms.

2.4. The Wefunder Parties are each hereby authorized and instructed to accept and execute any instructions in respect of the Interest given by the Investor in written or electronic form. The Wefunder Parties may rely conclusively upon and shall incur no liability in respect of any action taken upon any notice, consent, request, instructions or other instrument believed in good faith to be genuine or to be signed by properly authorized persons of the Investor.

2.5. Pursuant to the requirements of Treas. Reg. § 301.6109-1(c), the Investor has provided, or agrees to provide upon the earlier of (i) two years of an acquisition of an Interest or (ii) twenty (20) days before any distribution is to be made from the SPV, his, her or its taxpayer identification number (e.g., social security number or employer identification number) under penalties of perjury and has or will attest that the Internal Revenue Service has not notified the Investor that he, she or it is subject to backup withholding.

## 3. The Manager Has The Right To Reject Any Subscription, In Whole Or In Part.

3.1. The Investor understands that the SPV will not register as an investment company under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act"), nor will it make a public offering of its securities within the United States.

3.2. The Investor understands that the value of all investments in any SPV made through individual retirement accounts ("IRAs") must be less than 25% of the value of the SPV's assets.

3.3. If the Investor is investing in a SPV through an employee benefit plan of any kind, including an individual retirement account (the "Plan"), and an individual or entity (the "Fiduciary") has entered into this Agreement on behalf of the Plan, the Fiduciary hereby makes the following representations, warranties, and covenants:

i. The Fiduciary is a fiduciary of the Plan who is authorized to invest Plan assets or is acting at the direction of a Plan fiduciary authorized to invest Plan assets. The Fiduciary has determined that an investment in the Fund is consistent with the Fiduciary's responsibilities to the Plan under Employee Retirement Income Security Act of 1974, as amended ("ERISA") or other applicable law, and is qualified to make such investment decision. The Fiduciary is authorized to make all representations, covenants and agreements set forth in this Agreement about and on behalf of the Investor, and the Fiduciary hereby agrees that, except for the representations, covenants and agreements contained in this section 3.3, all representations, covenants and agreements contained in this Agreement are made on behalf of the Investor who is investing through the Plan.

ii. The execution and delivery of this Subscription Agreement, and the investment contemplated hereby has been duly authorized by all appropriate and necessary parties pursuant to the provisions of the instrument or instruments governing the Plan and any related trust; and (B) will not violate, and is not otherwise inconsistent with, the terms of such instrument or instruments.

iii. The Fiduciary acknowledges that the assets of the Fund will be invested in accordance with the Company Information related to that Fund.

iv. The Plan's purchase and holding of an Interest will not constitute a non-exempt transaction prohibited under ERISA, Section 4975 of the Internal Revenue Code (the "Code"), or any similar laws or other federal, state, local, foreign or other laws or regulations applicable to the Plan and its investments. None of the Wefunder entities nor any of their affiliates, agents, or employees: (A) exercises any authority or control with respect to the management or disposition of assets of the Plan used to purchase an Interest, (B) renders investment advice for a fee (pursuant to an agreement or understanding that such advice will serve as a primary basis for investment decisions and that such advice will be based on the particular investment needs of the Plan), with respect to such assets of the Plan, or has the authority to do so, or (C) is an employer maintaining or contributing to, or any of whose employees are covered by, the Plan.

v. The Fiduciary understands and agrees to the fee arrangements described in the Company Information.

vi. The Fiduciary understands and agrees that, to prevent the assets of the SPV from being treated as "plan assets" for purposes of ERISA and Section 4975 of the Code, the Investor may be prohibited from purchasing or acquiring an Interest or may be required to redeem its Interest or a portion thereof.

3.4. The Investor acknowledges that the SPV and any Administrator, on the SPV's behalf, may not accept any investment from an Investor if the Investor cannot truthfully make the representations contained herein.

# 4. The Correctness And Accuracy Of All Information Provided By Investor To The LLC Or The SPV.

4.1. The Investor confirms that all information and documentation provided to the LLC, the SPV, and any Administrator, including, but not limited to, all information regarding the Investor's identity, taxpayer identification number, the source of the funds to be invested in the SPV, and the Investor's eligibility to invest in offerings under Regulation Crowdfunding, is true, correct and complete. Should any such information change or no longer be accurate, the Investor agrees and covenants that they will promptly notify the Wefunder Parties of such changes via the wefunder.com platform. The Investor agrees and covenants that he, she or it will maintain accurate and up-to-date contact information (including email and mailing address) on the wefunder.com platform and will promptly update such information in the event it changes or is no longer accurate.

4.2. The representations, warranties, agreements, undertakings and acknowledgments made by the Investor in this Subscription Agreement will be relied upon by the LLC, the SPV, and any Administrator in determining the Fund's compliance with federal and state securities laws, and shall survive the Investor's admission as a Member of the SPV.

4.3. All information that the Investor has provided to the LLC, the SPV, and any Administrator concerning the knowledge and experience of financial, tax and business matters of the Investor is correct and complete.

# 5. The Wefunder Parties' Right To Use Investor Information.

5.1. The Investor agrees and consents to the Wefunder Parties, their delegates and their duly authorized agents and any of their respective related, associated or affiliated companies obtaining, holding, using, disclosing and processing the Investor's data:

a. to facilitate the acceptance, management and administration of the Investor's subscription for an Interest on an on-going basis;
b. for any other specific purposes where the Investor has given specific consent to do so;
c. to carry out statistical analysis, market research, and tracking of investment performance over time;
d. to comply with legal or regulatory requirements applicable to the SPV and any Administrator or the Investor, including, but not limited to, in connection with anti-money laundering and similar laws;
e. for disclosure or transfer to third parties including the Investor's financial adviser (where appropriate), regulatory bodies, auditors, technology providers or to the SPV, any Administrator, any Lead Investor, and their delegates or their duly appointed agents and any of their respective related, associated or affiliated companies for the purposes specified above;
f. if the contents thereof are relevant to any issue in any action, suit or proceeding to which the LLC, the SPV, any Administrator, any Lead Investor, or their affiliates are a party or by which they are or may be bound;
g. for other legitimate business of the LLC, the SPV, any Administrator, or any Lead Investor.

5.2. The Investor acknowledges and agrees that it will provide additional information or take such other actions as may be necessary or advisable for the SPV or any Administrator (in the sole judgment of the SPV and/or any Administrator) to comply with any disclosure and compliance policies, related legal process or appropriate requests (whether formal or informal) or otherwise.
5.3. The Investor agrees and consents to disclosure by the LLC, the SPV and any of their agents, including any Administrator or any Lead Investor, to relevant third parties of information pertaining to the Investor in respect of disclosure and compliance policies or information requests related thereto. Without limiting the generality of the foregoing, the Investor agrees that information about the Investor may be provided to the Company in whose securities a SPV will or proposes to invest.
5.4. The Investor authorizes the LLC, the SPV, any Administrator, and each SPV service provider to disclose the Investor's nonpublic personal information to comply with regulatory and contractual requirements applicable to the SPV and its investments. Any such disclosure shall be permitted notwithstanding any privacy policy or similar restrictions regarding the disclosure of the Investor's nonpublic personal information.

# 6. Key Risk Factors

6.1. The Investor understands that investment in a SPV may involve a complete loss of the Investor's investment. In this regard, the Investor understands that such venture investments involve a high degree of risk, and that many or most venture company investments lose money. An Investor may ultimately receive cash, securities, or a combination of cash and securities (and in many cases nothing at all). If the Investor receives securities, the securities may not be publicly traded, and may not have any significant value.

6.2. The Investor understands and agrees that the Interests are subject to restrictions on transfer and cannot be redeemed. Instead, an Investor typically must hold his or her Interest in a SPV until the SPV has sold or otherwise disposed of its investments and the SPV distributes its investments to the investors in the SPV (a "Liquidation Event"). An Investor typically will not receive any distributions until such a Liquidation Event (and may not receive anything even upon a Liquidation Event), which may not occur for many years. The Investor must therefore bear the economic risk of holding their investment for an indefinite period of time.

6.3. The Investor understands and agrees that the Interests: (a) have not been registered under the Securities Act or any other law of the United States, or under the securities laws of any state or other jurisdiction, and therefore an Interest cannot be resold, pledged, assigned or otherwise disposed of unless it is so registered or an exemption from registration is available; and (b) can only be transferred as permitted under Regulation Crowdfunding and subject to the terms and conditions of this Agreement.

6.4. The Investor understands that no guarantees have been made to the Investor about future performance or financial results of the SPV, and an investment in the SPV may result in a gain or loss upon termination or liquidation of the SPV. It is possible that the investors in a SPV will have "phantom income," which could require them to pay taxes on their investment in a SPV even though the SPV does not distribute any income (or does not distribute sufficient income to pay the taxes).

6.5. The Investor understands and agrees that the SPV was formed by and is operated by Wefunder Admin, LLC on behalf of the Company. Investors will have no right to manage or influence the management of any SPV or of the LLC.

6.6. The Investor understands and agrees that the Company may appoint a Lead Investor and that, if appointed, pursuant to a power of attorney granted by the Investor in the Investor Agreement, the Lead Investor will exercise voting authority on behalf of the Investor with respect to the SPV securities the Investor owns.

6.7. The Investor represents that he or she has read and understands the risk factors contained in the Company Information. The Investor understands and agrees that each Company is solely responsible for providing risk factors, conflicts of interest, and other disclosures that investors should consider when investing in securities issued by that Company (including through a SPV), and that the Wefunder Parties have no ability to assure, and have not in any way assured, that any or all such risk factors, conflicts of interest and other disclosures have been presented fully and fairly, or have been presented at all.

6.8. The Investor understands that any privacy statements, reports or other communications regarding the SPV and the Investor's investment in the SPV (including annual and other updates, and tax documents) will be delivered via electronic means, including through wefunder.com. The Investor hereby consents to electronic delivery as described in the preceding sentence. In so consenting, the Investor acknowledges that email messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with, with or without the knowledge of the sender or the intended recipient. The Investor also acknowledges that an email from the Wefunder Parties may be accessed by recipients other than the Investor and may be interfered with, may contain computer viruses or other defects and may not be successfully replicated on other systems. No Wefunder Party gives any warranties in relation to these matters.

6.9. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number under penalties of perjury, and attest that the Investor has not been notified by the Internal Revenue Service that he, she or it is subject to backup withholding, the SPV will be required to withhold from any proceeds otherwise payable to the Investor an amount necessary to satisfy the SPV's backup withholding obligations.

6.10. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number to the SPV, the SPV will withhold from any proceeds otherwise payable to the Investor an amount necessary for the SPV to satisfy its tax withholding obligations with respect to such amount. The SPV may also withhold any other amounts representing the SPV's reasonable estimation of penalties that may be charged by the Internal Revenue Service or any other taxing authority as a result of the Investor's failure to provide a valid taxpayer identification number.

## 7. Compliance With Anti-Money Laundering Laws.

7.1. The Investor represents and warrants that the Investor's investment was not directly or indirectly derived from illegal activities, including any activities that would violate U.S. Federal or State laws or any laws and regulations of other countries.

7.2. The Investor acknowledges that U.S. Federal law, regulations and Executive Orders administered by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") may prohibit the SPV, any Administrator, or any Lead Investor from, among other things, engaging in transactions with, and the provision of services to, persons on the list of Specially Designated Nationals and Blocked Persons and persons, foreign countries and territories that are the subject of U.S. sanctions administered by OFAC (collectively, the "OFAC Maintained Sanctions").

7.3. The Investor acknowledges that the SPV prohibits the investment of funds by any persons or entities that are (i) the subject of OFAC Maintained Sanctions, (ii) acting, directly or indirectly, in contravention of any applicable laws and regulations, including anti-money laundering regulations or conventions, or on behalf of persons or entities subject to an OFAC Maintained Sanction, (iii) acting, directly or indirectly, for a senior foreign political figure, any member of a senior foreign political figure's immediate family or any close associate of a senior foreign political figure, unless the SPV, after being specifically notified by the Investor in writing that it is such a person, conducts further due diligence, and determines that such investment shall be permitted, or (iv) acting, directly or indirectly, for a foreign shell bank (such persons or entities in (i) - (iv) are collectively referred to as "Prohibited Persons"). The Investor represents and warrants that it is not, and is not acting directly or indirectly on behalf of, a Prohibited Person.

7.4. To the extent the Investor has any beneficial owners, (i) it has carried out thorough due diligence to establish the identities of such beneficial owners, (ii) based on such due diligence, the Investor reasonably believes that no such beneficial owners are Prohibited Persons, (iii) it holds the evidence of such identities and status and will maintain all such evidence for at least five years from the date of the liquidation or termination of the SPV, and (iv) it will make available such information and any additional information requested by the SPV that is required under applicable regulations.

7.5. The Investor acknowledges and agrees that the SPV or any Administrator may "freeze the account" of the Investor, including, but not limited to, by suspending distributions from the SPV to which the Investor would otherwise be entitled, if necessary to comply with anti-money laundering statutes or regulations.

7.6. The Investor acknowledges and agrees that the SPV and/or any Administrator, in complying with anti-money laundering statutes, regulations and goals, may file voluntarily and/or as required by law suspicious activity reports ("SARs") or any other information with governmental and law enforcement agencies that identify transactions and activities that the SPV or any Administrator or their agents reasonably determine to be suspicious, or is otherwise required by law. The Investor acknowledges that the LLC, the SPV, and any Administrator are prohibited by law from disclosing to third parties, including the Investor, any filing or the substance of any SARs.

7.7. The Investor agrees that, upon the request of the LLC, the SPV, or any Administrator, it will provide such information as the LLC, the SPV, or any Administrator requires to satisfy applicable anti-money laundering laws and regulations, including, without limitation, background documentation about the Investor

## 8. Regulatory Provisions

8.1. The Investor understands that no federal or state agency has passed upon the Interests or made any findings or determination as to the fairness of this investment.

8.2. The Investor certifies that the information contained in the executed copy of Form W-9 submitted to the SPV (if any) and/or the taxpayer identification provided to the SPV is correct. The Investor agrees to provide such other documentation as the SPV determines may be necessary for the SPV to fulfill any tax reporting and/or withholding requirements.

8.3. The Investor understands and agrees that the Company may cause the SPV to make an election under Section 754 of the Internal Revenue Code (the "Code") or an election to be treated as an "electing investment partnership" for purposes of Section 743 of the Code. If the SPV elects to be treated as an electing investment partnership, the Investor shall cooperate with the SPV to maintain that status and shall not take any action that would be inconsistent with such election. Upon request, the Investor shall provide the SPV with any information necessary to allow the SPV to comply with (a) its obligations to make tax basis adjustments under Section 734 or 743 of the Code and (b) its obligations as an electing investment partnership.

8.4. The Investor consents to receive any Schedule K-1 (Partner's Share of Income, Deductions, Credits, etc.) from the SPV electronically via email, the Internet and/or another electronic reporting medium in lieu of paper copies. The Investor agrees that it will confirm this consent electronically at a future date in a manner set forth by the Company at such time and as required by the electronic receipt consent rules set forth by the Internal Revenue Service. The Investor may request a paper copy of the Investor's Schedule K-1 by contacting Wefunder Inc. at support@wefunder.com or such other email address as specified on the wefunder.com platform. Requesting a paper copy will not constitute a withdrawal of the Investor's consent to receive reports or other communications, including Schedule K-1, electronically. The Investor may withdraw its consent for electronic delivery or change its contact preferences for such delivery at any time by writing to support@wefunder.com or such other email address as specified on the wefunder.com platform. Such withdrawal will take effect promptly after receipt, unless otherwise agreed upon. Upon receipt of a withdrawal request, the SPV will confirm the withdrawal and the date on which it takes effect in writing (either electronically or on paper). A withdrawal of consent does not apply to a statement that was furnished electronically before the date on which the withdrawal of consent takes effect. The SPV will cease providing information electronically upon termination of the SPV. Notwithstanding the Investor's consent to receive materials electronically, the Investor still may be required to print and attach its Schedule K-1 to a federal, state or local tax return.

## 9. Miscellaneous Provisions

## 9.1. Indemnification

9.1.1. The Investor agrees to indemnify and hold harmless the LLC, the SPV, any Administrator, any Lead Investor, or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them, and each other person, if any, who controls, is controlled by, or is under common control with, any of the foregoing, within the meaning of Section 15 of the Securities Act, and their respective officers, directors, partners, members, shareholders, owners, employees and agents (collectively, the "Indemnified Parties") against any and all loss, liability, claim, damage and expense whatsoever (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) arising out of or based upon (i) any false representation or warranty made by the Investor, or breach or failure by the Investor to comply with any covenant or agreement made by the Investor, in this Subscription Agreement or in any other document furnished by the Investor to any of the foregoing in connection with this transaction, or (ii) any action for securities law violations instituted by the Investor that is finally resolved by judgment against the Investor.

9.1.2. The Investor also agrees to indemnify each Indemnified Party for any and all costs, fees and expenses (including legal fees and disbursements) in connection with any damages resulting from the Investor's misrepresentation or misstatement contained herein, or the assertion of the Investor's lack of proper authorization from the beneficial owner to enter into this Subscription Agreement or perform the obligations hereof.

9.1.3. The Investor agrees to indemnify and hold harmless each Indemnified Party from and against any tax, interest, additions to tax, penalties, reasonable attorneys' and accountants' fees and disbursements, together with interest on the foregoing amounts at a rate determined by the SPV or any Administrator computed from the date of payment through the date of reimbursement, arising from the failure to withhold and pay over to the U.S. Internal Revenue Service or the taxing authority of any other jurisdiction any amounts computed, as required by applicable law, with respect to the income or gains allocated to or amounts distributed to the Investor with respect to its Interest during the period from the Investor's acquisition of the Interest until the Investor's transfer of the Interest in accordance with this Agreement, the LLC Agreement, and Regulation Crowdfunding.

9.1.4. If for any reason (other than the willful misfeasance or gross negligence of the entity that would otherwise be indemnified) the foregoing indemnification is unavailable to, or is insufficient to hold such Indemnified Party harmless, then the Investor shall contribute to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the Investor on the one hand and the Indemnified Parties on the other but also the relative fault of the Investor and the Indemnified Parties, as well as any relevant equitable considerations.

9.1.5. The reimbursement, indemnity and contribution obligations of the Investor under this section shall be in addition to any liability that the Investor may otherwise have, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Indemnified Parties.

9.2. **Limitation of Liability.** The LLC is a Delaware "multi-series" limited liability company. As a multi-series limited liability company, the LLC may operate multiple series with the benefit of segregation of assets and liabilities among each of its series pursuant to the Delaware Limited Liability Company Act, as amended (the "**Delaware Act**"). Accordingly, the Investor hereby agrees that the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a series (including the SPV) shall be enforceable against the assets of that series only and not against the LLC generally or the assets of any other series. In addition, none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the LLC generally, or any particular series, shall be enforceable against the assets of any other series.

9.3. **Counsel.** The Investor understands that Morrison & Foerster LLP serves as legal counsel on certain matters to Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC and Wefunder Advisors, LLC and not to the SPV or any Investor by virtue of its investment in the SPV, and that no independent counsel has been retained to represent the SPV or Investors in the SPV. The Investor also understands that Morrison & Foerster LLP has not independently verified any factual assertions made in the Company Information or on the Wefunder website and is not responsible for the SPV's compliance with its investment program or applicable law.

9.4. **Power of Attorney.** The Investor hereby appoints each of the Company and Wefunder Admin, LLC as its true and lawful representative and attorney-in-fact, in its name, place and stead to make, execute, sign, acknowledge, swear to and file:

9.4.1. a Certificate of Formation of the LLC and any amendments required under the Delaware Act
9.4.2. the LLC Agreement and any duly adopted amendments;
9.4.3. any and all instruments, certificates and other documents that may be deemed necessary or desirable to effect the winding-up and termination of the LLC or the SPV (including a Certificate of Cancellation of the Certificate of Formation); and
9.4.4. any business certificate, fictitious name certificate, related amendment or other instrument or document of any kind necessary or desirable to accomplish the LLC's or the SPV's business, purpose and objectives or required by any applicable U.S., state, local or other law.

This power of attorney is coupled with an interest, is irrevocable, and shall survive and shall not be affected by the subsequent death, disability, incompetency, termination, bankruptcy, insolvency or dissolution of the Investor; provided, however, that this power of attorney will terminate upon the substitution of another SPV member for all of the Investor's investment in the LLC or the SPV or upon the liquidation or termination of the LLC or the SPV. The Investor hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of the LLC, the SPV, and any Administrator taken in good faith under this power of attorney.

## 9.5. Confidentiality

9.5.1. The Investor agrees that the Company Information and all financial statements (if any), tax reports (if any), portfolio valuations (if any), private placement memoranda (if any), reviews or analyses of potential or actual investments (if any), reports or other materials prepared or produced by the SPV and/or any Administrator and all other documents and information concerning the affairs of the SPV and/or the Fund's investments, including, without limitation, information about the Company, and/or the persons directly or indirectly investing in the SPV (collectively, the "Confidential Information") that the Investor may receive pursuant to or in accordance with the use of the Wefunder website, an investment in one or more SPVs, or otherwise as a result of its ownership of an interest in the SPV, constitute proprietary and confidential information about the SPV, any Administrator, and/or any Lead Investor (the "Affected Parties").

9.5.2. The Investor acknowledges that the Affected Parties derive independent economic value from the Confidential Information not being generally known and that the Confidential Information is the subject of reasonable efforts to maintain its secrecy. The Investor further acknowledges that the Confidential Information is a trade secret, the disclosure of which is likely to cause substantial and irreparable competitive harm to the Affected Companies or their respective businesses. The Investor shall not reproduce any of the Confidential Information or portion thereof or make the contents thereof available to any third party other than a disclosure on a need-to-know basis to the Investor's legal, accounting or investment advisers, auditors and representatives (collectively, "Advisers"), except to the extent compelled to do so in accordance with applicable law (in which case the Investor shall promptly notify the SPV of the Investor's obligation to disclose any Confidential Information) or with respect to Confidential Information that otherwise becomes publicly available other than through breach of this provision by the Investor.

9.5.3. To the fullest extent permitted by law, the Investor agrees not to request disclosure or inspection of any such information after the Investor is notified (whether in response to the Investor's request for information or otherwise) that the SPV has determined not to disclose such information.

9.5.4. The Investor agrees that the LLC, the SPV, and the SPV service providers would be subject to potentially irreparable injury as a result of any breach by the Investor of the covenants and agreements set forth in this Item 9.5, and that monetary damages would not be sufficient to compensate or make whole the LLC, the SPV, and the SPV services providers for any such breach. Accordingly the Investor agrees that the LLC, the SPV, and the SPV service providers shall be entitled to equitable and injunctive relief, on an emergency, temporary, preliminary and/or permanent basis, to prevent any such breach or the continuation thereof.

9.6. Amendments. Neither this Subscription Agreement nor any term hereof may be supplemented, changed, waived, discharged or terminated except with the written consent of the Investor and the Company on behalf of the relevant SPV. For the sake of clarity, the restriction on the Company in the preceding sentence applies solely to the form of this Subscription Agreement applicable to SPVs that have had a closing, and does not prevent the Company from changing the form and content of this Subscription Agreement for use in offerings of SPVs that have not had a closing.

9.7. Assignability and Transferability. This Subscription Agreement is not transferable or assignable by the Investor without the prior written consent of the Company on behalf of the SPV, and any transfer or assignment in violation of this provision shall be null and void. The Interests in the SPV being acquired by Investor herein may only be transferred by Investor in compliance with Regulation Crowdfunding and the terms and conditions of this Agreement. If Investor seeks to transfer the Interests, Investor shall first give written notice to the Company and Wefunder Admin, LLC, including the number of Interests that Investor desires to transfer, the proposed price, the name and contact information of the proposed buyer, and any other information that the Company or Wefunder Admin, LLC may reasonably request. To the extent possible, such notice shall be provided through the Wefunder.com website. Any transfer of Interests shall be subject to execution by Investor and the proposed transferee of appropriate documentation, as may be required by the Company or Wefunder Admin, LLC, in their discretion. Investor further acknowledges that pursuant to the LLC Agreement, Wefunder Admin, LLC (as Series Manager of the SPV), may impose additional restrictions on or prohibit the Transfer of Interests for any reason or no reason, in its sole discretion.

9.8. Repurchase. In the event that the SPV or any Administrator determines that it is likely that within twelve (12) months the securities of the SPV or the Company will be held of record by a number of persons that would require the SPV or the Company to register a class of its equity securities under the Securities Exchange Act of 1934, as amended ("Exchange Act"), as required by Section 12(g) or 15(d) thereof, the SPV shall have the option to repurchase the Interests from each Investor to the extent necessary to avoid the requirement to register a class of its securities under the Exchange Act. Such repurchase of Interests shall be for the greater of (i) the purchase price of the Interests, or (ii) the fair market value of the Interests, as determined by an independent appraiser of securities chosen by the Administrator. Any such repurchase may only occur with the consent of Wefunder Admin, LLC, as Series Manager of the SPV.

9.9. Governing Law. Consent to Jurisdiction. Notwithstanding the place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be construed under the laws of the State of Delaware. Any action or proceeding brought by the SPV or any SPV service provider against one or more investors in the SPV relating in any way to this Subscription Agreement or the LLC Agreement may, and any action or proceeding brought by any other party against the SPV or any SPV service provider relating in any way to this Subscription Agreement or the Company Information shall, be brought and enforced in the state courts of the State of Delaware located in Wilmington or (to the extent subject matter jurisdiction exists therefore) in the courts of the United States located in the District of Delaware; and the Investor and the SPV irrevocably submit to the jurisdiction of both such state and federal courts in respect of any such action or proceeding. The Investor and the SPV irrevocably waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to laying the venue of any such action or proceeding in the courts of the State of Delaware located in Wilmington or in the courts of the United States located in the District of Delaware and any claim that any such action or proceeding brought in any such court has been brought in an inconvenient forum.

9.10. Severability. If any provision of this Subscription Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof that may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and to this extent the provisions hereof shall be severable.

9.11. Headings. The headings in this Subscription Agreement are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof.

9.12. General. This Subscription Agreement shall be binding upon the Investor and the legal representatives, successors and assigns of the Investor, shall survive the admission of the Investor as a member of a SPV, and shall, if the Investor consists of more than one person, be the joint and several obligation of all such persons.

[Remainder of page intentionally left blank. Signature page follows.]

The undersigned have executed this instrument as of the date first above written.

**SPV**

**Zero Cheating II EB, as series of Wefunder SPV, LLC**
**By: Wefunder Admin, LLC, its Manager**

By: *Founder Signature*

Date:

Name: **Nicholas Tommarello**

Title: **Chief Executive Officer**

**Investor**

**[INVESTOR NAME]**

By: *Investor Signature*

Date:

CONTACT INFORMATION:

Name: **[INVESTOR NAME]**

Mailing Address:

City:

Country:

E-mail:

# TERMS APPENDIX FOR THE PURCHASE OF Zero Cheating, Inc SECURITIES BY Zero Cheating II EB, A SERIES OF WEFUNDER SPV, LLC, A DELAWARE LIMITED LIABILITY COMPANY

Type of Security: Future Equity

Terms $4M valuation cap and 20% discount

To view a copy of the contract, please see Appendix B, Investor Contracts of the Form C. The latest Form C or C/A filing be found here:

https://www.sec.gov/cgi-bin/srch-edgar?text=%28FORM-TYPE%3DC%2FA+or+FORM-

TYPE%3DC%29+and+CIK%3D0001961710&first=2016

**Attachment 5:** `document_5.pdf`

THIS INSTRUMENT AND ANY SECURITIES ISSUABLE PURSUANT HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED IN THIS SAFE AND UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

IF THE INVESTOR LIVES OUTSIDE THE UNITED STATES, IT IS THE INVESTOR'S RESPONSIBILITY TO FULLY OBSERVE THE LAWS OF ANY RELEVANT TERRITORY OR JURISDICTION OUTSIDE THE UNITED STATES IN CONNECTION WITH ANY PURCHASE OF THE SECURITIES, INCLUDING OBTAINING REQUIRED GOVERNMENTAL OR OTHER CONSENTS OR OBSERVING ANY OTHER REQUIRED LEGAL OR OTHER FORMALITIES. THE COMPANY RESERVES THE RIGHT TO DENY THE PURCHASE OF THE SECURITIES BY ANY FOREIGN PURCHASER.

Zero Cheating, Inc.

# SAFE
(Simple Agreement for Future Equity)

THIS CERTIFIES THAT in exchange for the payment by [[INVESTOR NAME]] (the "Investor") of $[[AMOUNT]____] (the "Purchase Amount") on or about [[EFFECTIVE DATE]], Zero Cheating, Inc., a Delaware C-Corporation, (the "Company"), issues to the Investor the right to certain shares of the Company's Capital Stock, subject to the terms described below.

The "Valuation Cap" is $4,000,000

The "Discount Rate" is 80%.

See Section 2 for certain additional defined terms.

# 1. Events

(a) Equity Financing. If there is an Equity Financing of Standard Preferred Stock before the termination of this SAFE, the Company will automatically issue to the Investor a number of shares of CF Shadow Series Preferred Stock equal to the Purchase Amount divided by the Conversion Price.

In connection with the automatic conversion of this SAFE into shares of CF Shadow Series Preferred Stock, by the Company to the Investor pursuant to this Section 1(a):

(i.) the Investor or the Designated Lead Investor (defined below) will execute and deliver to the Company all transaction documents related to the Equity Financing; provided, that such documents (i) are the same documents to be entered into with the purchasers of Standard Preferred Stock, with appropriate variations for the CF Shadow Series Preferred Stock if applicable; and

(ii.) if the Investor is a Major Investor, the Investor and the Company will execute a Rights Agreement in favor of the Investor, unless the Major Investor is already included in such rights in the transaction documents related to the Equity Financing.

(b) Liquidity Event. If there is a Liquidity Event before the expiration or termination of this SAFE, the Investor will, at his/her option, either (i) receive a cash payment equal to the Purchase Amount (subject to the following paragraph) or (ii) automatically receive from the Company a number of shares of Common Stock equal

to the Purchase Amount divided by the Liquidity Price, if the Investor fails to select the cash option.

In connection with this Section 1(b)(i), the Purchase Amount will be due and payable by the Company to the Investor immediately prior to, or concurrent with the consummation of the Liquidity Event. If there are not enough funds to pay (i) holders of shares of Standard Preferred Stock issued by the date of this instrument or holders of shares of subsequent Standard Preferred Stock that does not trigger an Equity Financing ("Senior Preferred Holders") and (ii) the Investor and holders of other SAFES (collectively the "Cash Out Investors") in full, then the Company's available funds will be distributed (i) first to the Senior Preferred Holders and (ii) second with equal priority and pro rata among the Cash-Out Investors in proportion to their Purchase Amounts and the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price. In connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce pro rata the Purchase Amounts payable to the Cash-Out Investors by the amount determined by the Board in the good faith to be advisable for such change of control to qualify as a tax-free reorganization for U.S. federal income tax purposes, and in such case, the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price

(c) Dissolution Event. If there is a Dissolution Event before this instrument expires or terminates, the Company will pay (i) first to the Senior Preferred Holders any amounts due and payable to them in connection with a Dissolution Event under the Company's Certificate of Incorporation the (Senior Preferred Holders' Payment) and (ii) second an amount equal to the Purchase Amount due and payable to the Investor immediately prior to or concurrent with the consummation of the Dissolution Event. The Purchase Amount will be paid prior to and in preference to any distribution of the assets of the Company to holders of outstanding Common Stock by reason of their ownership thereof. If immediately prior to the consummation of the Dissolution Event and after payment of the Senior Preferred Holders' Payment, the assets of the Company legally available for distribution to the Cash-Out Investors as determined in good faith by the Board are insufficient to permit the payment to the Cash-Out Investors of their respective Purchase Amounts then the entire assets of the Company legally available for distribution will be disbursed with equal priority and pro rata among the Cash-Out Investors in proportion to the Purchase Amounts they would otherwise be entitled to receive pursuant to this Section 1(c).

(d) Repurchase. If the Company determines, in its sole discretion, that it is likely that within six months the securities of the Company will be held of record by a number of persons that would require the Company to register a class of its equity securities under the Securities Exchange Act of 1934. as amended, as required by Section 12(g) thereof, the Company shall have the option to repurchase this instrument from the Investor for the greater of (i) the purchase amount and (ii) the fair market value of this instrument, as determined by an independent appraiser of securities chosen by the Company (such repurchase, the "Repurchase," and such greater value, the "Repurchase Value"); provided, however, that, in the event an Equity Financing occurs within three months after the Repurchase and the Repurchase Value is less than the Aggregate Value (as defined below) of the shares of CF Shadow Series Preferred Stock the Investor would have received had the Repurchase not occurred (where such value is determined by multiplying the number of shares of CF Shadow Series Preferred Stock by the Conversion Price and is referred to as the "Aggregate Value"), the Company shall pay to the Investor an amount equal to the difference between the Aggregate Value and the Repurchase Value promptly following the consummation of the Equity Financing. Such independent appraiser shall be regularly engaged in the valuation of securities. The foregoing repurchase option terminates upon a Change of Control or Dissolution Event.

(e) Termination. This SAFE will expire and terminate (without relieving the Company of any obligations arising from a prior breach of or non-compliance with this SAFE) upon either: (i) the issuance of CF Shadow Series Preferred Stock to the Investor pursuant Section 1(a) or Section 1(b)(ii); (ii) the payment or setting aside for payments of amounts due the Investor pursuant to Section 1(b)(i) or Section 1(c); or (iii) the payment of

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the Repurchase Value; provided, however, the provisions of Section 1(d) in the event an Equity Financing occurs within three months after the Repurchase; provided further that Section 5 shall survive any such termination.

## 2. Definitions

"Board" means the Board of Directors of the Company.

"Capital Stock" means the capital stock of the Company, including, without limitation, the "Common Stock" and the "Preferred Stock."

"CF Shadow Series Preferred Stock" shall mean a series of Capital Stock that is identical in all respects to the shares of Standard Preferred Stock issued in the relevant Equity Financing (e.g., if the Company sells Series A Preferred Stock in an Equity Financing, the Shadow Series would be Series A-CF Preferred Stock), except that:

(i) CF Shadow Series Preferred Stockholders shall have no voting rights and shall not be entitled to vote on any matter that is submitted to a vote or for the consent of the stockholders of the Company;
(ii) Each of the CF Shadow Series shareholders shall enter into a proxy agreement, appointing the Designated Lead Investor as its irrevocable proxy with respect to any matter to which CF Shadow Series Preferred Stockholders shareholders are entitled to vote by law. Entering into such proxy agreement is a condition of receiving CF Shadow Series Preferred Stock;
(iii) A per share liquidation preference and conversion price for purposes of price-based anti-dilution protection equal to the Conversion price; and
(iv) CF Shadow Series shareholders have no information or inspection rights, except with respect to such rights deemed not waivable by laws.
(v) The Repurchase Provision in Section 1(d) shall apply to the holders of CF Shadow Series Preferred Stock.

"Change of Control" means (i) a transaction or series of related transactions in which any "person" or "group" (within the meaning of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities of the Company having the right to vote for the election of members of the Company's board of directors, (ii) any reorganization, merger or consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity or (iii) a sale, lease or other disposition of all or substantially all of the assets of the Company, provided, however, a Change of Control does not include a reorganization to change the Company's domicile.

"Company Capitalization" means the sum, as of immediately prior to the Equity Financing, of (1) all shares of Capital Stock (on an as-converted basis) issued and outstanding, assuming, exercise or conversion of all outstanding vested and unvested options, warrants, and other convertible securities, but excluding: (a) this SAFE; (b) all other SAFEs; and (c) convertible promissory notes; and (2) all shares of Common Stock reserved and available for future grant under any equity incentive or similar plan of the Company, and/or any equity incentive or similar plan to be created or increased in connection with the Equity Financing.

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"Conversion Price" means the either: (1) the SAFE Price or (2) the Discount Price, whichever calculation results in a greater number of shares of CF Shadow Series Preferred Stock.

"Designated Lead Investor" means a SAFE purchaser designated by the Company, and which such purchaser has agreed to act in the capacity of Designated Lead Investor pursuant to the terms and conditions of Section 5.

"Discount Price" means the price per share of the Standard Preferred Stock sold in the Equity Financing multiplied by the Discount Rate.

"Distribution" means the transfer to holders of Capital Stock by reason of their ownership thereof of cash or other property without consideration whether by of dividend or otherwise, other than dividends on Common Stock payable in Common Stock or the purchase or redemption of Capital Stock by the Company or its subsidiaries for cash or property other than: (i) repurchases of Common Stock held by employees, officers, members of the Board or consultants of the Company or its subsidiaries pursuant to an agreement providing, as applicable, a right of first refusal or a right to repurchase shares upon termination of such service provider's employment or services; or repurchases of Capital Stock in connection with the settlement of disputes with any stockholder.

"Dissolution Event" means (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the Company's creditors or (iii) any other liquidation, dissolution or winding up of the Company (excluding a Liquidity Event), whether voluntary or involuntary.

"Dividend Amount" means, with respect to any date on which the Company pays a dividend on its outstanding Common Stock, the amount of such dividend that is paid per share of Common Stock multiplied by (x) the Purchase Amount divided by (y) the Liquidity Price (treating the dividend date as a Liquidity Event solely for purposes of calculating such Liquidity Price).

"Equity Financing" means a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells Standard Preferred Stock excluding previously issued Senior Preferred Holders in the amount of at least $1,000,000 at a fixed pre-money valuation and excludes any additional securities sold pursuant to Section 4(a)(6) of the Securities Act.

"Initial Public Offering" means the closing of the Company's first firm commitment underwritten initial public offering of Common Stock pursuant to a registration statement filed under the Securities Act.

"Liquidity Capitalization" means the number, as of immediately prior to the Liquidity Event of shares of Capital Stock (on an as-converted basis) outstanding assuming exercise or conversation of all outstanding vested and unvested options, warrants, and other convertible securities, but excluding: (i) shares of Common Stock reserved and available for future grant under any equity incentive or similar plan, (ii) this SAFE, (iii) all other SAFEs; and (iv) convertible promissory notes.

"Liquidity Event" means a Change of Control or an Initial Public Offering.

"Liquidity Price" means the price per share equal to the Valuation Cap divided by the Liquidity Capitalization.

"Major Investor" means a holder of one or more SAFEs if (i) the aggregate Purchase Amounts of such SAFEs is equal to or greater than $50,000 and (ii) Wefunder, Inc. has verified that such holder is an Accredited Investor in accordance with Rule 506(c) of Regulation D under the Securities Act.

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"Pro Rata Rights Agreement" means a written agreement between the Company and the Investor (and holders of other SAFEs as appropriate) giving the Investor a right to purchase its pro rata share of private placements of securities by the Company occurring in conjunction with the Equity Financing subject to customary exceptions. Pro Rata for purposes of the Pro Rata Rights Agreement will be calculated based on the ratio of (1) the number of shares of Capital Stock owned by the Investor immediately prior to the issuance of the securities to (2) the total number of shares outstanding Capital Stock on a fully diluted basis, calculated as of immediately prior to the issuance of the securities.

"SAFE" means an instrument containing a future right to shares of Capital Stock, similar in form and content to this instrument, purchased by investors for the purpose of funding the Company's business operations. References to "this SAFE" mean this specific instrument.

"SAFE Price" means the price per share equal to the Valuation Cap divided by the Company Capitalization.

"Standard Preferred Stock" means the shares of the series of Preferred Stock issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing.

### 3. Company Representations

(a) The Company is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation, and has the power and authority to own, lease and operate its properties and carry on its business as now conducted.

(b) The execution, delivery and performance by the Company of this SAFE is within the power of the Company and other than with respect to actions to be taken when equity is to be issued to the Investor, has been duly authorized by all necessary actions on the part of the Company. This SAFE constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity. To its knowledge, the Company is not in violation of (i) its current certificate of incorporation or bylaws, (ii) any material statute, rule or regulation applicable to the Company or (iii) any material debt or contract to which the Company is a party or by which it is bound, where, in each case, such violation or default, individually, or together with all such violations or defaults, could reasonably be expected to have a material adverse effect on the Company.

(c) The performance and consummation of the transactions contemplated by this SAFE do not and will not: (i) violate any material judgment, statute, rule or regulation applicable to the Company; (ii) result in the acceleration of any material debt or contract to which the Company is a party or by which it is bound; or (iii) result in the creation or imposition of any lien on any property, asset or revenue of the Company or the suspension, forfeiture, or nonrenewal of any material permit, license or authorization applicable to the Company, its business or operations.

(d) No corporate or governmental consents or approvals are required in connection with the performance of this SAFE, other than: (i) the Company's corporate approvals; (ii) any qualifications or filings under applicable securities laws; and (iii) necessary corporate approvals for the authorization of Capital Stock issuable pursuant to Section 1.

(e) To its knowledge, the Company owns or possesses (or can obtain on commercially reasonable terms) sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, processes and other intellectual property rights necessary for its business as now conducted and as currently proposed to be conducted, without any conflict with, or infringement of the rights of, others.

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#### 4. Investor Representations

(a) The Investor has full legal capacity, power and authority to execute and deliver this SAFE and to perform its obligations hereunder. This SAFE constitutes valid and binding obligation of the Investor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity.

(b) If the Investor has checked the box next to Accredited Investor on the signature page, the Investor represents that he, she, or it is an accredited investor as such term is defined in Rule 501 of Regulation D under the Securities Act, and acknowledges and agrees that if not an accredited investor at the time of an Equity Financing, the Company may void this SAFE and return the Purchase Amount. If the Investor has checked the box next to "unaccredited Investor" on the signature page, the Investor represents that he, she, or it is complying with the rules and regulations of Regulation Crowdfunding, including the investment limits set forth in Section 4(a)(6) of the Securities Act. The Investor has been advised that this SAFE and the underlying securities have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. The Investor is purchasing this SAFE and the securities to be acquired by the Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing the Investor's financial condition and is able to bear the economic risk of such investment for an indefinite period of time.

#### 5. Miscellaneous

(a) Any provision of this SAFE may be amended, waived or modified as follows:

(i) if the Investor is not a Major Investor, any provision of this instrument (other than the Valuation Cap) may be amended, waived, or modified only upon the by written consent of the Company and either (a) the Designated Lead Investor or (b) the holders of a majority of the Purchase Amounts of payable to the Cash-Out Investors.

(ii) If the Investor is a Major Investor, any provision of this instrument (other than the Valuation Cap) may be amended, waived, or modified only upon the written consent of the Company and the holders of a majority of the Purchase Amounts payable to the Cash-Out Investors who are Major Investors, and

(iii) regardless of whether the Investor is or is not a Major Investor, the Valuation Cap may be amended, waived, or modified only (a) upon the written consent of the Company and the holders of a majority of the Purchase Amounts payable to the Cash-Out Investors or (b) as contemplated in the definition of Valuation Cap.

(b) Any notice required or permitted by this SAFE will be deemed sufficient when delivered personally or by overnight courier or sent by email to the address provided by such party to WeFunder Inc. as subsequently modified by written notice or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified.

(c) The Investor is not entitled, as a holder of this SAFE, to vote, receive dividends, or be deemed a holder of Capital Stock for any purpose, nor will anything contained herein be construed to confer on the Investor, as such, any rights of a Company stockholder or rights to vote for the election of members of the Board on any

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matter submitted to stockholders, at any meeting thereof or to give or withhold consent to any corporate action or to receive notice of meetings, or to receive subscription rights or otherwise unless and until shares have been issued on the terms described herein except as otherwise specified in Section 5(d).

(d) Access to dividends. The Investor is not entitled, as a holder of this SAFE, to vote or be deemed a holder of Capital Stock for any purpose other than tax purposes, nor will anything in this SAFE be construed to confer on the Investor, as such, any rights of a Company stockholder or rights to vote for the election of directors or on any matter submitted to Company stockholders, or to give or withhold consent to any corporate action or to receive notice of meetings, until shares have been issued on the terms described in Section Error! Reference source not found.. However, if the Company pays a dividend on outstanding shares of Common Stock (that is not payable in shares of Common Stock) while this SAFE is outstanding, the Company shall pay the Dividend Amount to the Investor at the same time.

(e) The Investor understands that the shares of CF Shadow Series Seed Preferred issued pursuant to this SAFE if and when such CF Shadow Series Preferred shares are issued and any securities issued in respect of or exchange for the shares of CF Series Seed Preferred Stock, may bear any one or more of the following legends: (a) any legend set forth in, or required by, this Agreement; (b) any legend required by the securities laws of any state to the extent such laws are applicable to the shares of Series Seed Preferred Stock represented by the certificate so legended; and (c) the following legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

(f) Neither this SAFE nor the rights in this SAFE are transferable or assignable, by operation of law or otherwise, by either party without the prior written consent of the other except as provided in Section (4)(a)(6) of the Securities Act of 1933 and; provided, however, that the Company may assign this instrument in whole without the consent of the Investor, in connection with a reincorporation to change the Company's domicile.

(g) In the event any one or more of the provisions of this SAFE is for any reason held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this SAFE operate or would prospectively operate to invalidate this SAFE, then and in any such event, such provision(s) only will be deemed null and void and will not affect any other provision of this SAFE and the remaining provisions of this SAFE will remain operative and in full force and effect and will not be affected, prejudiced, or disturbed thereby.

(h) Each party irrevocably waives all right to trial by jury in action, proceeding, counterclaim (whether based in contract, tort, or otherwise) arising out of or relating to this SAFE or the actions of either party in the negotiation, administration, performance, and enforcement, thereof. Each party also waives any bond, surety, or security upon such bond, which might, but for this waiver, be required. Each party further warrants and represents that it knowingly and voluntarily waives its jury trial rights. This waiver is irrevocable, meaning it may not be modified either orally or in writing, and this waiver shall apply to any subsequent amendments, renewals, supplements, or modifications to this SAFE. In the event of ligation, this SAFE may be filed as a written consent to a trial by the court.

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(i) This SAFE may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Facsimile copies of signed signature pages will be deemed binding originals.

(j) All rights and obligations hereunder will be governed by the laws of the State of Delaware, without regard to the conflicts of law provisions of such jurisdiction.

(k) Entire Agreement. This Agreement together with the Form C on file with the Securities and Exchange Commission constitute and contain the entire agreement among the Company and Investors and supersede any and all prior agreements, negotiations, correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof.

(Signature page follows)

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IN WITNESS WHEREOF, the parties have executed this agreement as of [EFFECTIVE DATE]

COMPANY:

Zero Cheating, Inc

Founder Signature

Name: [Founder Name]

Title: [Founder Role]

Read and Approved (For IRA Use Only):

INVESTOR:

[ENTITY NAME]

By:

Investor Signature

By:

Name: [INVESTOR NAME]

Title: [INVESTOR TITLE]

The Investor is an “accredited investor” as that term is defined in Regulation D promulgated by the Securities and Exchange Commission under the Securities Act.

Please indicate Yes or No by checking the appropriate box:

☐ Accredited

☐ Not Accredited

SIGNATURE PAGE

**Attachment 6:** `document_6.pdf`

THIS INSTRUMENT AND ANY SECURITIES ISSUABLE PURSUANT HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED IN THIS SAFE AND UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

IF THE INVESTOR LIVES OUTSIDE THE UNITED STATES, IT IS THE INVESTOR'S RESPONSIBILITY TO FULLY OBSERVE THE LAWS OF ANY RELEVANT TERRITORY OR JURISDICTION OUTSIDE THE UNITED STATES IN CONNECTION WITH ANY PURCHASE OF THE SECURITIES, INCLUDING OBTAINING REQUIRED GOVERNMENTAL OR OTHER CONSENTS OR OBSERVING ANY OTHER REQUIRED LEGAL OR OTHER FORMALITIES. THE COMPANY RESERVES THE RIGHT TO DENY THE PURCHASE OF THE SECURITIES BY ANY FOREIGN PURCHASER.

Zero Cheating, Inc.

# SAFE
(Simple Agreement for Future Equity)

THIS CERTIFIES THAT in exchange for the payment by [[INVESTOR NAME]] (the "Investor") of $[[AMOUNT]____] (the "Purchase Amount") on or about [[EFFECTIVE DATE]], Zero Cheating, Inc., a Delaware C-Corporation, (the "Company"), issues to the Investor the right to certain shares of the Company's Capital Stock, subject to the terms described below.

The "Valuation Cap" is $5,000,000.

The "Discount Rate" is 80%.

See Section 2 for certain additional defined terms.

# 1. Events

(a) Equity Financing. If there is an Equity Financing of Standard Preferred Stock before the termination of this SAFE, the Company will automatically issue to the Investor a number of shares of CF Shadow Series Preferred Stock equal to the Purchase Amount divided by the Conversion Price.

In connection with the automatic conversion of this SAFE into shares of CF Shadow Series Preferred Stock, by the Company to the Investor pursuant to this Section 1(a):

(i.) the Investor or the Designated Lead Investor (defined below) will execute and deliver to the Company all transaction documents related to the Equity Financing; provided, that such documents (i) are the same documents to be entered into with the purchasers of Standard Preferred Stock, with appropriate variations for the CF Shadow Series Preferred Stock if applicable; and

(ii.) if the Investor is a Major Investor, the Investor and the Company will execute a Rights Agreement in favor of the Investor, unless the Major Investor is already included in such rights in the transaction documents related to the Equity Financing.

(b) Liquidity Event. If there is a Liquidity Event before the expiration or termination of this SAFE, the Investor will, at his/her option, either (i) receive a cash payment equal to the Purchase Amount (subject to the following paragraph) or (ii) automatically receive from the Company a number of shares of Common Stock equal

to the Purchase Amount divided by the Liquidity Price, if the Investor fails to select the cash option.

In connection with this Section 1(b)(i), the Purchase Amount will be due and payable by the Company to the Investor immediately prior to, or concurrent with the consummation of the Liquidity Event. If there are not enough funds to pay (i) holders of shares of Standard Preferred Stock issued by the date of this instrument or holders of shares of subsequent Standard Preferred Stock that does not trigger an Equity Financing ("Senior Preferred Holders") and (ii) the Investor and holders of other SAFES (collectively the "Cash Out Investors") in full, then the Company's available funds will be distributed (i) first to the Senior Preferred Holders and (ii) second with equal priority and pro rata among the Cash-Out Investors in proportion to their Purchase Amounts and the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price. In connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce pro rata the Purchase Amounts payable to the Cash-Out Investors by the amount determined by the Board in the good faith to be advisable for such change of control to qualify as a tax-free reorganization for U.S. federal income tax purposes, and in such case, the Cash-Out Investors will automatically receive the number of shares of Common Stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price

(c) Dissolution Event. If there is a Dissolution Event before this instrument expires or terminates, the Company will pay (i) first to the Senior Preferred Holders any amounts due and payable to them in connection with a Dissolution Event under the Company's Certificate of Incorporation the (Senior Preferred Holders' Payment) and (ii) second an amount equal to the Purchase Amount due and payable to the Investor immediately prior to or concurrent with the consummation of the Dissolution Event. The Purchase Amount will be paid prior to and in preference to any distribution of the assets of the Company to holders of outstanding Common Stock by reason of their ownership thereof. If immediately prior to the consummation of the Dissolution Event and after payment of the Senior Preferred Holders' Payment, the assets of the Company legally available for distribution to the Cash-Out Investors as determined in good faith by the Board are insufficient to permit the payment to the Cash-Out Investors of their respective Purchase Amounts then the entire assets of the Company legally available for distribution will be disbursed with equal priority and pro rata among the Cash-Out Investors in proportion to the Purchase Amounts they would otherwise be entitled to receive pursuant to this Section 1(c).

(d) Repurchase. If the Company determines, in its sole discretion, that it is likely that within six months the securities of the Company will be held of record by a number of persons that would require the Company to register a class of its equity securities under the Securities Exchange Act of 1934. as amended, as required by Section 12(g) thereof, the Company shall have the option to repurchase this instrument from the Investor for the greater of (i) the purchase amount and (ii) the fair market value of this instrument, as determined by an independent appraiser of securities chosen by the Company (such repurchase, the "Repurchase," and such greater value, the "Repurchase Value"); provided, however, that, in the event an Equity Financing occurs within three months after the Repurchase and the Repurchase Value is less than the Aggregate Value (as defined below) of the shares of CF Shadow Series Preferred Stock the Investor would have received had the Repurchase not occurred (where such value is determined by multiplying the number of shares of CF Shadow Series Preferred Stock by the Conversion Price and is referred to as the "Aggregate Value"), the Company shall pay to the Investor an amount equal to the difference between the Aggregate Value and the Repurchase Value promptly following the consummation of the Equity Financing. Such independent appraiser shall be regularly engaged in the valuation of securities. The foregoing repurchase option terminates upon a Change of Control or Dissolution Event.

(e) Termination. This SAFE will expire and terminate (without relieving the Company of any obligations arising from a prior breach of or non-compliance with this SAFE) upon either: (i) the issuance of CF Shadow Series Preferred Stock to the Investor pursuant Section 1(a) or Section 1(b)(ii); (ii) the payment or setting aside for payments of amounts due the Investor pursuant to Section 1(b)(i) or Section 1(c); or (iii) the payment of

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the Repurchase Value; provided, however, the provisions of Section 1(d) in the event an Equity Financing occurs within three months after the Repurchase; provided further that Section 5 shall survive any such termination.

## 2. Definitions

"Board" means the Board of Directors of the Company.

"Capital Stock" means the capital stock of the Company, including, without limitation, the "Common Stock" and the "Preferred Stock."

"CF Shadow Series Preferred Stock" shall mean a series of Capital Stock that is identical in all respects to the shares of Standard Preferred Stock issued in the relevant Equity Financing (e.g., if the Company sells Series A Preferred Stock in an Equity Financing, the Shadow Series would be Series A-CF Preferred Stock), except that:

(i) CF Shadow Series Preferred Stockholders shall have no voting rights and shall not be entitled to vote on any matter that is submitted to a vote or for the consent of the stockholders of the Company;
(ii) Each of the CF Shadow Series shareholders shall enter into a proxy agreement, appointing the Designated Lead Investor as its irrevocable proxy with respect to any matter to which CF Shadow Series Preferred Stockholders shareholders are entitled to vote by law. Entering into such proxy agreement is a condition of receiving CF Shadow Series Preferred Stock;
(iii) A per share liquidation preference and conversion price for purposes of price-based anti-dilution protection equal to the Conversion price; and
(iv) CF Shadow Series shareholders have no information or inspection rights, except with respect to such rights deemed not waivable by laws.
(v) The Repurchase Provision in Section 1(d) shall apply to the holders of CF Shadow Series Preferred Stock.

"Change of Control" means (i) a transaction or series of related transactions in which any "person" or "group" (within the meaning of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities of the Company having the right to vote for the election of members of the Company's board of directors, (ii) any reorganization, merger or consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity or (iii) a sale, lease or other disposition of all or substantially all of the assets of the Company, provided, however, a Change of Control does not include a reorganization to change the Company's domicile.

"Company Capitalization" means the sum, as of immediately prior to the Equity Financing, of (1) all shares of Capital Stock (on an as-converted basis) issued and outstanding, assuming, exercise or conversion of all outstanding vested and unvested options, warrants, and other convertible securities, but excluding: (a) this SAFE; (b) all other SAFEs; and (c) convertible promissory notes; and (2) all shares of Common Stock reserved and available for future grant under any equity incentive or similar plan of the Company, and/or any equity incentive or similar plan to be created or increased in connection with the Equity Financing.

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"Conversion Price" means the either: (1) the SAFE Price or (2) the Discount Price, whichever calculation results in a greater number of shares of CF Shadow Series Preferred Stock.

"Designated Lead Investor" means a SAFE purchaser designated by the Company, and which such purchaser has agreed to act in the capacity of Designated Lead Investor pursuant to the terms and conditions of Section 5.

"Discount Price" means the price per share of the Standard Preferred Stock sold in the Equity Financing multiplied by the Discount Rate.

"Distribution" means the transfer to holders of Capital Stock by reason of their ownership thereof of cash or other property without consideration whether by of dividend or otherwise, other than dividends on Common Stock payable in Common Stock or the purchase or redemption of Capital Stock by the Company or its subsidiaries for cash or property other than: (i) repurchases of Common Stock held by employees, officers, members of the Board or consultants of the Company or its subsidiaries pursuant to an agreement providing, as applicable, a right of first refusal or a right to repurchase shares upon termination of such service provider's employment or services; or repurchases of Capital Stock in connection with the settlement of disputes with any stockholder.

"Dissolution Event" means (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the Company's creditors or (iii) any other liquidation, dissolution or winding up of the Company (excluding a Liquidity Event), whether voluntary or involuntary.

"Dividend Amount" means, with respect to any date on which the Company pays a dividend on its outstanding Common Stock, the amount of such dividend that is paid per share of Common Stock multiplied by (x) the Purchase Amount divided by (y) the Liquidity Price (treating the dividend date as a Liquidity Event solely for purposes of calculating such Liquidity Price).

"Equity Financing" means a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells Standard Preferred Stock excluding previously issued Senior Preferred Holders in the amount of at least $1,000,000 at a fixed pre-money valuation and excludes any additional securities sold pursuant to Section 4(a)(6) of the Securities Act.

"Initial Public Offering" means the closing of the Company's first firm commitment underwritten initial public offering of Common Stock pursuant to a registration statement filed under the Securities Act.

"Liquidity Capitalization" means the number, as of immediately prior to the Liquidity Event of shares of Capital Stock (on an as-converted basis) outstanding assuming exercise or conversation of all outstanding vested and unvested options, warrants, and other convertible securities, but excluding: (i) shares of Common Stock reserved and available for future grant under any equity incentive or similar plan, (ii) this SAFE, (iii) all other SAFEs; and (iv) convertible promissory notes.

"Liquidity Event" means a Change of Control or an Initial Public Offering.

"Liquidity Price" means the price per share equal to the Valuation Cap divided by the Liquidity Capitalization.

"Major Investor" means a holder of one or more SAFEs if (i) the aggregate Purchase Amounts of such SAFEs is equal to or greater than $50,000 and (ii) Wefunder, Inc. has verified that such holder is an Accredited Investor in accordance with Rule 506(c) of Regulation D under the Securities Act.

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"Pro Rata Rights Agreement" means a written agreement between the Company and the Investor (and holders of other SAFEs as appropriate) giving the Investor a right to purchase its pro rata share of private placements of securities by the Company occurring in conjunction with the Equity Financing subject to customary exceptions. Pro Rata for purposes of the Pro Rata Rights Agreement will be calculated based on the ratio of (1) the number of shares of Capital Stock owned by the Investor immediately prior to the issuance of the securities to (2) the total number of shares outstanding Capital Stock on a fully diluted basis, calculated as of immediately prior to the issuance of the securities.

"SAFE" means an instrument containing a future right to shares of Capital Stock, similar in form and content to this instrument, purchased by investors for the purpose of funding the Company's business operations. References to "this SAFE" mean this specific instrument.

"SAFE Price" means the price per share equal to the Valuation Cap divided by the Company Capitalization.

"Standard Preferred Stock" means the shares of the series of Preferred Stock issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing.

### 3. Company Representations

(a) The Company is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation, and has the power and authority to own, lease and operate its properties and carry on its business as now conducted.

(b) The execution, delivery and performance by the Company of this SAFE is within the power of the Company and other than with respect to actions to be taken when equity is to be issued to the Investor, has been duly authorized by all necessary actions on the part of the Company. This SAFE constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity. To its knowledge, the Company is not in violation of (i) its current certificate of incorporation or bylaws, (ii) any material statute, rule or regulation applicable to the Company or (iii) any material debt or contract to which the Company is a party or by which it is bound, where, in each case, such violation or default, individually, or together with all such violations or defaults, could reasonably be expected to have a material adverse effect on the Company.

(c) The performance and consummation of the transactions contemplated by this SAFE do not and will not: (i) violate any material judgment, statute, rule or regulation applicable to the Company; (ii) result in the acceleration of any material debt or contract to which the Company is a party or by which it is bound; or (iii) result in the creation or imposition of any lien on any property, asset or revenue of the Company or the suspension, forfeiture, or nonrenewal of any material permit, license or authorization applicable to the Company, its business or operations.

(d) No corporate or governmental consents or approvals are required in connection with the performance of this SAFE, other than: (i) the Company's corporate approvals; (ii) any qualifications or filings under applicable securities laws; and (iii) necessary corporate approvals for the authorization of Capital Stock issuable pursuant to Section 1.

(e) To its knowledge, the Company owns or possesses (or can obtain on commercially reasonable terms) sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, processes and other intellectual property rights necessary for its business as now conducted and as currently proposed to be conducted, without any conflict with, or infringement of the rights of, others.

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#### 4. Investor Representations

(a) The Investor has full legal capacity, power and authority to execute and deliver this SAFE and to perform its obligations hereunder. This SAFE constitutes valid and binding obligation of the Investor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity.

(b) If the Investor has checked the box next to Accredited Investor on the signature page, the Investor represents that he, she, or it is an accredited investor as such term is defined in Rule 501 of Regulation D under the Securities Act, and acknowledges and agrees that if not an accredited investor at the time of an Equity Financing, the Company may void this SAFE and return the Purchase Amount. If the Investor has checked the box next to "unaccredited Investor" on the signature page, the Investor represents that he, she, or it is complying with the rules and regulations of Regulation Crowdfunding, including the investment limits set forth in Section 4(a)(6) of the Securities Act. The Investor has been advised that this SAFE and the underlying securities have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. The Investor is purchasing this SAFE and the securities to be acquired by the Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing the Investor's financial condition and is able to bear the economic risk of such investment for an indefinite period of time.

#### 5. Miscellaneous

(a) Any provision of this SAFE may be amended, waived or modified as follows:

(i) if the Investor is not a Major Investor, any provision of this instrument (other than the Valuation Cap) may be amended, waived, or modified only upon the by written consent of the Company and either (a) the Designated Lead Investor or (b) the holders of a majority of the Purchase Amounts of payable to the Cash-Out Investors.

(ii) If the Investor is a Major Investor, any provision of this instrument (other than the Valuation Cap) may be amended, waived, or modified only upon the written consent of the Company and the holders of a majority of the Purchase Amounts payable to the Cash-Out Investors who are Major Investors, and

(iii) regardless of whether the Investor is or is not a Major Investor, the Valuation Cap may be amended, waived, or modified only (a) upon the written consent of the Company and the holders of a majority of the Purchase Amounts payable to the Cash-Out Investors or (b) as contemplated in the definition of Valuation Cap.

(b) Any notice required or permitted by this SAFE will be deemed sufficient when delivered personally or by overnight courier or sent by email to the address provided by such party to WeFunder Inc. as subsequently modified by written notice or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified.

(c) The Investor is not entitled, as a holder of this SAFE, to vote, receive dividends, or be deemed a holder of Capital Stock for any purpose, nor will anything contained herein be construed to confer on the Investor, as such, any rights of a Company stockholder or rights to vote for the election of members of the Board on any

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matter submitted to stockholders, at any meeting thereof or to give or withhold consent to any corporate action or to receive notice of meetings, or to receive subscription rights or otherwise unless and until shares have been issued on the terms described herein except as otherwise specified in Section 5(d).

(d) Access to dividends. The Investor is not entitled, as a holder of this SAFE, to vote or be deemed a holder of Capital Stock for any purpose other than tax purposes, nor will anything in this SAFE be construed to confer on the Investor, as such, any rights of a Company stockholder or rights to vote for the election of directors or on any matter submitted to Company stockholders, or to give or withhold consent to any corporate action or to receive notice of meetings, until shares have been issued on the terms described in Section Error! Reference source not found.. However, if the Company pays a dividend on outstanding shares of Common Stock (that is not payable in shares of Common Stock) while this SAFE is outstanding, the Company shall pay the Dividend Amount to the Investor at the same time.

(e) The Investor understands that the shares of CF Shadow Series Seed Preferred issued pursuant to this SAFE if and when such CF Shadow Series Preferred shares are issued and any securities issued in respect of or exchange for the shares of CF Series Seed Preferred Stock, may bear any one or more of the following legends: (a) any legend set forth in, or required by, this Agreement; (b) any legend required by the securities laws of any state to the extent such laws are applicable to the shares of Series Seed Preferred Stock represented by the certificate so legended; and (c) the following legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

(f) Neither this SAFE nor the rights in this SAFE are transferable or assignable, by operation of law or otherwise, by either party without the prior written consent of the other except as provided in Section (4)(a)(6) of the Securities Act of 1933 and; provided, however, that the Company may assign this instrument in whole without the consent of the Investor, in connection with a reincorporation to change the Company's domicile.

(g) In the event any one or more of the provisions of this SAFE is for any reason held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this SAFE operate or would prospectively operate to invalidate this SAFE, then and in any such event, such provision(s) only will be deemed null and void and will not affect any other provision of this SAFE and the remaining provisions of this SAFE will remain operative and in full force and effect and will not be affected, prejudiced, or disturbed thereby.

(h) Each party irrevocably waives all right to trial by jury in action, proceeding, counterclaim (whether based in contract, tort, or otherwise) arising out of or relating to this SAFE or the actions of either party in the negotiation, administration, performance, and enforcement, thereof. Each party also waives any bond, surety, or security upon such bond, which might, but for this waiver, be required. Each party further warrants and represents that it knowingly and voluntarily waives its jury trial rights. This waiver is irrevocable, meaning it may not be modified either orally or in writing, and this waiver shall apply to any subsequent amendments, renewals, supplements, or modifications to this SAFE. In the event of ligation, this SAFE may be filed as a written consent to a trial by the court.

-7-

(i) This SAFE may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Facsimile copies of signed signature pages will be deemed binding originals.

(j) All rights and obligations hereunder will be governed by the laws of the State of Delaware, without regard to the conflicts of law provisions of such jurisdiction.

(k) Entire Agreement. This Agreement together with the Form C on file with the Securities and Exchange Commission constitute and contain the entire agreement among the Company and Investors and supersede any and all prior agreements, negotiations, correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof.

(Signature page follows)

-8-

IN WITNESS WHEREOF, the parties have executed this agreement as of [EFFECTIVE DATE]

COMPANY:

Zero Cheating, Inc

Founder Signature

Name: [Founder Name]

Title: [Founder Role]

Read and Approved (For IRA Use Only):

INVESTOR:

[ENTITY NAME]

By:

Investor Signature

By:

Name: [INVESTOR NAME]

Title: [INVESTOR TITLE]

The Investor is an “accredited investor” as that term is defined in Regulation D promulgated by the Securities and Exchange Commission under the Securities Act.

Please indicate Yes or No by checking the appropriate box:

☐ Accredited

☐ Not Accredited

SIGNATURE PAGE

**Attachment 7:** `document_7.pdf`

# **REVIEWED FINANCIAL STATEMENTS**

**ZeroCheating, Inc.  
For the Period Ended November 30, 2022  
With Independent Accountant's Review Report**

# **ZeroCheating, Inc.**

# **Financial Statements**

Period Ended November 30, 2022

# **Contents**

| Independent Accountant’s Review Report | 2 |
| --- | --- |
| Balance Sheet | 3 |
| Statement of Operations | 4 |
| Statement of Changes in Stockholders’ Equity | 5 |
| Statement of Cash Flows | 6 |
| Notes to the Financial Statements | 7 |

1

Fiona Hamza, CPA
Email: fhamzacpa@outlook.com
Ph: 502 396 1855

Accounting Services

# Independent Accountant's Review Report

The Board of Directors
ZeroCheating, Inc.
Boca Raton, Florida

I have reviewed the accompanying financial statements of ZeroCheating, Inc., which comprises of the balance sheet as of November 30, 2022, and the related statements of income, changes in stockholders' equity, and cash flows from November 22, 2022 ("inception") to November 30, 2022 and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, I do not express such an opinion.

# Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error.

# Accountant's Responsibility

My responsibility is to conduct the review engagements in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants. Those standards require me to perform procedures to obtain limited assurance as a basis for reporting whether I am aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. I believe that the results of my procedures provide a reasonable basis for our conclusion.

We are required to be independent of ZeroCheating, Inc., and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our reviews.

# Accountant's Conclusion

Based on my reviews, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.

Fiona Hamza, CPA

Plano, Texas
December 2, 2022

2

# ZeroCheating, Inc.

## Balance Sheet

|  | November 30, 2022 |
| --- | --- |
| Assets |  |
| Current assets: |  |
| Cash and cash equivalents ( note 1 ) | $ - |
| Total current assets | - |
| Patent ( note 2 ) | 3,550 |
| Deferred tax asset ( note 1 ) | - |
| Total assets | $3,550 |
| Liabilities and Stockholders' Equity |  |
| Current liabilities: |  |
| Trade payable | - |
| Total current liabilities | - |
| Total long-term liabilities | - |
| Total liabilities | - |
| Commitment and Contingencies ( note 3 ) |  |
| Stockholders' equity: |  |
| Class A Common stock, $.00001 par value, 10,000,000 shares authorized, 8,000,000 issued and outstanding ( note 2 ) | 80 |
| Paid-in capital | 68,744 |
| Retained deficit | (65,274) |
| Total stockholders' equity | 3,550 |
| Total liabilities and stockholders' equity | $3,550 |

*See Independent Accountant's Review Report.*

3

# **ZeroCheating, Inc.**
Statement of Operations

|  | Period from November 22, 2022 (Inception) to November 30, 2022 |
| --- | --- |
| Revenue | $ - |
| Expenses: |  |
| Finance facilitation fee | 6,000 |
| Marketing | - |
| Legal expenses | 6,000 |
| Research and development ( note 1 ) | 53,274 |
| Total operating expenses | 65,274 |
| Net loss | $(65,274) |

*See Independent Accountant's Review Report.*

4

# **ZeroCheating, Inc.**

# Statement of Changes in Stockholders' Equity

|  | Common Stock shares - $.00001 | Paid-in Capital | Retained Deficit | Total Stockholders' Equity |
| --- | --- | --- | --- | --- |
| Balance at November 22, 2022 (date of inception) | $ - | $ - | $ - | $ - |
| Common stock issued | 80 | 68,744 | - | 68,824 |
| Net Loss | - |  | (65,274) | (65,274) |
| Balance at November 30, 2022 | $80 | $68,744 | $(65,274) | $3,550 |

*See Independent Accountant's Review Report.*

5

# **ZeroCheating, Inc.**

# Statement of Cash Flows

|  | Period from November 22, 2022 (Inception) to November 30, 2022 |
| --- | --- |
| Operating activities |  |
| Net loss | $(65,274) |
| Increase in trade payable | - |
| Net cash used in operating activities | (65,274) |
| Investing activities |  |
| Patent | (3,550) |
| Net cash used in investing activities | - |
| Financing activities |  |
| Proceeds from capital contribution | 68,824 |
| Net cash provided by financing activities | 68,824 |
| Net increase in cash and cash equivalents | - |
| Cash and cash equivalents at beginning of year | - |
| Cash and cash equivalents at end of year | $ - |

# **Supplemental disclosures of cash flow information:**

| Cash paid for interest | $ - |
| --- | --- |
| Cash paid for income taxes | $ - |

*See Independent Accountant's Review Report.*

6

# **ZeroCheating, Inc.**  
**Notes to Financial Statements**  
**November 30, 2022**

# **1. Business and Summary of Significant Accounting Policies**

# ***Description of Business and Basis of Presentation***

ZeroCheating, Inc., a development stage entity, was formed on November 22, 2022 (“Inception”) in the State of Delaware. The financial statements of ZeroCheating, Inc. (which may be referred to as the “Company”, “Grow Space”, “we,” “us,” or “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s headquarters are located in Boca Raton, Florida.

ZeroCheating is a fully automated exam proctoring service that ensures academic honorability with online exam taking. The company’s proctoring service focuses on exams at numerous institutions including education, professional associations/certifications, and government related entities. The simple nature of the technology and services allows for wide scale distribution at both a national and international level. The service makes online exams more practical, fair, and secure. The current solutions have discrimination/privacy issues and fail to stop cheating. ZeroCheating is a more effective solution in both areas. First, the company uses a patent-pending camera with a wide-angle lens and 360-degree motion sensor. The wide-angle lens prevents the test taker from using their phone off-camera and the motion sensor detects anyone else in the room. Second, the software includes multiple identity verification methods including facial recognition, retina scanning, fingerprint, and voice recognition. Thus, the person’s identity is easier to verify and less likely to have discrimination issues.

# ***Risks and Uncertainties***

The Company’s business and operations are sensitive to general business and economic conditions in the U.S. A host of factors beyond the Company’s control could cause fluctuations in these conditions. Adverse conditions may include: delayed development of camera prototype, delayed software development, positioning the company brand to differentiate its uniqueness compared to existing competition, risk of reputation loss due to technology issues, prospective clients being in long-term contracts, and customers may take long time to sign and implement.

In addition, more established companies that currently have products on the market and/or in development may succeed in developing and marketing competing equivalent services earlier than us, or superior service than those developed by us. Our patent may not be granted or could be unenforceable or ineffective. These adverse conditions could affect the Company’s financial condition and the results of its operations.

*See Independent Accountant’s Review Report.*

7

# **ZeroCheating, Inc.**
**Notes to Financial Statements (continued)**
**November 30, 2022**

During the next 12 months, the Company intends to operate (develop camera prototype and software, testing of the software, legal, payroll and website development) largely with funding from founders, and our Regulation Crowdfunding campaign, and additional debt and/or equity financing as determined to be necessary.

There are no assurances that management will be able to raise capital on terms acceptable to the Company. If we are unable to obtain sufficient amounts of additional capital, we may be required to reduce the scope of our planned development, which could harm our business, financial condition, and operating results. The balance sheet does not include any adjustments that might result from these uncertainties.

# *Use of estimates*

The preparation of financial statements is in conformity with the accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. It is reasonably possible that changes in estimates will occur in the near term.

# *Accounting Method*

The Company's financial statements are prepared using the accrual method of accounting. In accordance with this method of accounting, the Company recognizes revenues in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic No. 606. Revenues are recognized when services are provided to the customers, in an amount that is expected in exchange for those services. The Company recognizes revenue when all the following criteria are met:

- There is persuasive evidence of an agreement
- Service have been delivered
- The fee is fixed and determinable
- Collectability is probable, and customer creditworthiness has been verified and approved with payment expected within normal payment terms.

# *Recent Accounting Pronouncements*

The Company has evaluated Recent Accounting Pronouncements and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements.

# *Cash and Cash Equivalents*

Cash equivalents consist primarily of short-term investments in overnight money market funds.

*See Independent Accountant's Review Report.*

8

# **ZeroCheating, Inc.**  
**Notes to Financial Statements (continued)**  
**November 30, 2022**

# ***Deferred Tax Asset***

The Company is taxed as Corporation and files income tax returns in the U.S federal jurisdiction and Delaware State Jurisdiction. The tax benefit asset for federal and state taxes is $13,707 and $5,679, respectively, that may be used to offset future taxable income. Federal net operating Losses (NOLs) carryforwards under Tax Cut and Jobs Act do not expire while state NOLs expires in twenty years. Due to lack of history, the Company has decided to set up valuation allowance account until they can better estimate the realization date.

# ***Research and development***

We incur research and development costs during the process of researching and developing our technologies and future offerings. We expense these costs as incurred until the resulting product has been completed, tested, and made ready for commercial use.

# **2. Patent**

Zero Cheating, Inc. has filed three (3) Patent Applications to protect various concepts for proctoring testing. The technology developed by Zero Cheating, Inc. will significantly reduce or eliminate cheating while enabling administration of tests at any of a variety of locations, including in-person testing and remote testing. Zero Cheating, Inc. will continue to diligently protect their intellectual property as new innovations are conceived.

# **3. Common Stock**

The relative rights, powers, preferences, qualifications, limitations, and restrictions of the Common Stock, are as follow:

Each share of Common Stock is entitled to one vote. 100% of the issued shares are owned by the founder.

In addition, options for 2 million shares at a strike price of 0.00001 cents per share are issued as of November 30, 2022, details are as follow:

Company and Purchaser acknowledge that Purchaser may have developed intellectual property, acquired assets or otherwise engaged in work on behalf of or for the benefit of the Company or related to the Business. the Purchaser shall have executed and delivered to the Company a Confidential Information and Invention Assignment Agreement and contribution of Assigned Assets to the Company under this

*See Independent Accountant's Review Report.*

9

# **ZeroCheating, Inc.**  
**Notes to Financial Statements (continued)**  
**November 30, 2022**

Agreement, the Company will issue and sell to Purchaser, and Purchaser agrees to purchase from the Company, 1,000,000 shares of the Company's restricted Common Stock (the 'Shares'), at a purchase price under this Agreement of $0.00001 per share, in consideration for Purchaser's payment of $10.00 (the 'Aggregate Purchase Price'). Assigned Assets, collectively refer to the Technology, Derivatives, Intellectual Property Rights, Embodiments and business and marketing plans and records, worldwide marketing rights, customer and supplier lists and records, financial projections, price lists, mailing lists, and other confidential or proprietary information relating to the Technology or Derivative, authored, conceived, developed or designed by Purchaser, related to the Business, and not otherwise already owned by the Company.

For Sarit Levy, as of the November 22, 2022, 27,778 Shares shall vest in equal monthly installments on the last day of each calendar month for 35 months. For so long as the Purchaser continues to provide services to the Company, as either a consultant or employee, on the last day of the 36th month, the remaining 27,770 Shares shall vest. Unless otherwise set forth below, all unvested Shares shall be automatically repurchased by the Company for a repurchase price of $0.00001 per share when Purchaser ceases to provide services to the Company, as either a consultant or employee.

For Matthew Bordy, upon the first anniversary of November 22, 2022, 333,333 of the Shares shall be deemed vested. For so long as the Provider continues to provide services to the Company, as either a consultant or employee, 29,985 of the Shares shall vest on the last day of each calendar month for 23 months beginning on December 22, 2023 and ending December 22, 2025. For so long as the Provider continues to provide services to the Company, as either a consultant or employee, any remaining unvested Shares shall vest on the 3rd anniversary of the Effective Date. Unless otherwise set forth below, all unvested Shares shall be automatically repurchased by the Company for a repurchase price of $0.00001 per share when Provider ceases to provide services to the Company, as either a consultant or employee.

#### **4. Commitments and Contingencies**

As of the date of issuance of financials December 2, 2022, the company has no commitments or contingencies.

#### **5. Subsequent Events**

Management has evaluated subsequent events through December 2, 2022, the date on which the financial statements were available to be issued and determined that there have been no events that have occurred that would require adjustments to our disclosures in the reviewed financial statements.

*See Independent Accountant's Review Report.*

10

**Attachment 8:** `document_8.pdf`

![img-0.jpeg](img-0.jpeg)

# **Neil Parsont, MBA** 3rd
President of Zero Cheating

Boca Raton, Florida, United States - Contact info
500+ connections

Zero Cheating Inc
Florida Atlantic University

Message + Follow More

# **About**

Neil Parsont is a highly motivated and diversified entrepreneur. His free time is dedicated towards the pursuit of applicable business knowledge in a plethora of fields including: Excel, Finance, Accounting Operations, Quantitative Analysis, Public Speaking, Business writing, and Marketing. By studying and then tutoring multiple fields of business, Neil is able to offer a thorough and complete business consulting service. He has helped thousands of students from undergraduates, to Executive MBA professionals succeed in their coursework and professional careers. Neil is extremely passionate about helping people succeed and incorporates efficiency and high quality into all of his work. When he sets his mind on a goal, it is only a matter of time before it becomes a reality. A true believer in "The Secret" by Rhonda Byrne.

# **Featured**

![img-1.jpeg](img-1.jpeg)

**Macro Calculator**
10,000+ records
Determine your exact macros calculated with a proprietary formula based on Harvard Research. You'll have access to our complete program which includes a Macro Tracker, 6-...

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**6-Pack Macros: Macro Calculator & Nutrition System**
previews.com
We're excited to announce the official launch of our 6-pack macros fully loaded nutrition system. You'll receive: * 40+ Recipes * 100+ Roaches * 6-Pack Abs Workout PDF *...

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**6-Pack Macros: Macro Tracker Tutorial**
post-pro.com
Enjoy this short tutorial from 6-Pack Macros CEO: Neil Parsont, where he discusses the full functionality and capabilities of our Macros Tracker Platform. Visit www.6packmacros.com f...

# **Activity**

5,885 followers

# **Neil hasn't posted lately**

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# **Experience**

**President**
Zero Cheating Inc - Full-time
Dec 2022 - Present - 2 mos
Oversee all development of software and systems. Manage and approve all cash flows. Direct marketing and strategy development.

**CEO**
6-Pack Macros - Full-time
May 2018 - Present - 4 yrs 9 mos
I oversee all mobile application development, website updates, advertising strategies and other operations.

**President**
Cram Tutoring - Self-employed
May 2008 - Present - 14 yrs 9 mos
Boca Raton
Founder and lead tutor.
- Managing, marketing, training of 20+ employees May '08 - Present ... see more

**Founder**
Owl Tutoring Inc
May 2008 - Present - 14 yrs 9 mos
Chief Educating Officer

**CEO**
Owl Tutors
May 2013 - Dec 2016 - 3 yrs 8 mos
Owl Tutors revolutionizes online tutoring services by connecting the student and tutor directly without the agency conflicts of an exchange. Rather than paying a variable fee of all revenue, tutors k ... see more

Show all 8 experiences →

# **Education**

Florida Atlantic University
MBA, Finance, General

2012 - 2016

**Florida Atlantic University**  
Bachelors Degree, Finance  
2005 - 2008

## Skills

### Leadership

![Red flag icon]() Endorsed by Aldan Thomas and 6 others who are highly skilled at this

![Red flag icon]() Endorsed by 4 colleagues at Cram Tutoring

![Red flag icon]() 99+ endorsements

### Entrepreneurship

![Red flag icon]() Endorsed by Kimberly Gramm and 3 others who are highly skilled at this

![Red flag icon]() Endorsed by 3 colleagues at Cram Tutoring

![Red flag icon]() 99+ endorsements

### Training

![Red flag icon]() Endorsed by Michael Wright and 2 others who are highly skilled at this

![Red flag icon]() Endorsed by 2 colleagues at Cram Tutoring

![Red flag icon]() 99+ endorsements

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## Recommendations

Received Given

**Michael Leavenworth** 2nd

Experienced Accounting and Finance Professional

June 8, 2017, Michael managed Neil directly

I worked with Neil at Owl Tutoring. You will not find a more entrepreneurial business owner out there. Neil's knowledge of finance is world class.

**Kat Girardot** ![Red flag icon]() 3rd

Leading human-centered operational solutions to better serve clients, stakeholders + employees | Mental health advocate

April 22, 2016, Neil was Kat's client

Neil's Owl Tutoring service was Oodsent while I was at FAU, so much so that I had friends from Palm Beach State use his services as well. Neil and his dedicated team of tutors helped me whenever I had a hard time with classes. Sometimes it was just a review needed and some more one on one, other times I was completely lost and needed someone to hold my hand, so to speak. Whatever was need ...see more

**Manuel J. Acosta** 3rd

Audit Associate at PwC - AC Hallandale Office

October 8, 2014, Manuel J. was Neil's client

Neil is an incredible entrepreneur who founded Owl Tutoring, which is among the best tutoring services I know of. He is reliable, smart, funny, outspoken, friendly, and also willing to help you in a wide range of subject matters. I definitely recommend him to be your tutor.

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## Projects

### Business Model Workbook

Jan 2012 - Jan 2015

![Red flag icon]() Associated with Owl Tutoring Inc

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The Business Model Workbook (BMW) is a dynamic forecasting model including sales forecast, marketing projections, research and development, general and administrative programs, valuation, statement of ...see more

Other creators

## Honors & awards

### First Place in FAU Business Plan Competition

Issued by Florida Atlantic University - Apr 2012

![Red flag icon]() Associated with Owl Tutoring Inc

Winner of the Florida Atlantic Business Plan Competition in 2011 earning a total prize package of over $94,800. The competition included over 200 participants.

## Test scores

### Bloomberg Aptitude Test (BAT)

Score: 96th percentile - Feb 2012

![Red flag icon]() Associated with Cram Tutoring

'The Bloomberg Aptitude Test (BAT) is a free 2-hour multiple-choice exam designed to assess aptitude for business and finance. Every BAT test-taker is anonymously entered into the Bloomberg Talent Search ...see more

## Languages

English

mainly or on-legal proficiency

French

Professional working proficiency

Interests

Top Voices Companies Groups Schools

Frank Eliason 3rd
Consultant at Frank Eliason, LLC
29/LEPE followers

Causes

Education

**Attachment 9:** `document_9.pdf`

![img-0.jpeg](img-0.jpeg)

1

This Page contains Forward Looking Statements, please note:

Certain statements that we make may constitute “forward-looking statements.” Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission, particularly the Form C that accompanies this Offering. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events or otherwise.

# **Disclaimer:**

The following comprehensive business plan was uniquely crafted for Zero Cheating, Inc. Suggested business planning, execution, marketing media strategies and implementation procedures are based on the results of extensive analysis, study of industry and media trends, and application of specifics unique to Zero Cheating, Inc. This plan will derive a complete business strategy that will culminate successful results for Zero Cheating, Inc.

Zero Cheating, Inc. is comprised of an innovative and seasoned group of executives with extensive expertise in areas of business development, financial technology, and lending operations. This plan in no way guarantees success of Zero Cheating, Inc. objectives but serves as a tactical strategy and plan to launch the prospective initiatives Zero Cheating, Inc. has orchestrated herein to assist in achieving its' desired results.

3

## TABLE OF CONTENTS

| Executive Summary | 4 |
| --- | --- |
| 1.1 Objectives | 4 |
| 1.2 Mission, Vision, and Values | 6 |
| 1.3 Business Overview | 7 |
| 1.4 Industry Overview | 7 |
| 1.5 Keys to Success | 9 |
| 1.6 Company Summary | 10 |
| 1.7 Company Ownership | 10 |
| 1.8 Growth Summary | 12 |
| 1.9 Company Locations & Facilities | 13 |
| 2.0 Products & Services Descriptions | 13 |
| 2.1 Competitive Analysis | 15 |
| 2.2 Feasibility Study | 19 |
| 2.3 Market Analysis & Summary | 22 |
| 2.4 Market Strategy, and Industry Trends | 27 |
| 2.5 Customer Target Market Segmentation | 57 |
| 2.6 SWOT Analysis | 61 |
| 2.7 Positioning Statement | 62 |
| 2.8 Milestones | 63 |
| 2.9 Management Summary and Gaps | 65 |
| 3.0 Financial Model and Plan | 66 |
| 3.1 Company Exit Strategy | 72 |
| ▪ Multiple Earnings Valuation |  |
| 3.2 Culmination of Business Plan Report | 75 |

### Appendix and Citations

| ▪ Appendix Tables, Charts, Pictures, and Figure | 76 |
| --- | --- |
| ▪ Appendix - Exhibit A - University Leads/Clients CBDO | 78 |
| ▪ Appendix - Exhibit B - Invoice for Proctor Services - Honorlock® and FSU | 80 |
| ▪ Appendix Sources and Citations | 81 |

*The proposed Business Plan includes both labeled figures and graphic presentations as titled herein*

4

## 1.0 Executive Summary

Zero Cheating is a fully automated exam proctoring service that ensures academic honorability with online exam taking. Zero Cheating solves two ongoing problems in the industry. Privacy and discrimination issues have become formal legal complaints issued by The Electronic Privacy Information Center (EPIC). The organization has filed five separate suits against online test-proctoring service companies. The second issue is cheating stays undetected by existing proctoring companies allowing students to continue to circumvent the barriers put in place. Zero Cheating provides an alternative proprietary software and patent pending technology solution. The company detects and prevents cheating, respects student’s privacy and rights while avoiding discrimination issues.

The company’s proctoring service focuses on exams at numerous institutions including education, professional associations/certifications, and government related entities. The simple nature of the technology and services allows for wide scale distribution at both a national and international level. The service makes online exams more practical, fair, and secure. The current solutions have discrimination/privacy issues and fail to stop cheating. Zero Cheating is a more effective solution in both areas. First, the company uses a patent-pending camera with a wide-angle lens and 360-degree motion sensor. The wide-angle lens prevents the test taker from using their phone off-camera and the motion sensor detects anyone else in the room. Second, the software includes multiple identity verification methods including facial recognition, retina scanning, fingerprint, and voice recognition. Thus, the person’s identity is easier to verify and less likely to have discrimination issues.

Most proctoring services currently use a room scan to identify any disallowed materials or other people in the room. Unfortunately, exam takers can often hide extra notes, devices, or other materials from the scan. Also, an extra person can easily remain off camera as well during the scan. Thus, the room scan is not a reliable mechanism for verifying the test environment. Additionally, room scans are invasive and were recently ruled unconstitutional by U.S. district court Judge J. Philip Calabrese. Subsequent artificial intelligence programming does not adequately solve these cheating problems. Conversely, Zero Cheating’s wide-angle camera negates the student’s ability to hide items outside the viewing area. Additionally, another person in the room is easily detected by the 360-degree motion sensor. Thus, Zero Cheating solves these cheating issues.

5

Zero Cheating's fully integrated proctoring service provides minimal room for error ensuring the university's brand and integrity remain intact through honest test-taking.

## 1. Objectives

*Short term objectives:*

Zero Cheating has a short-term goal to complete the development of the camera prototype and software. During the first year of business, Zero Cheating intends to test the camera/software system on a sample of over 100 students generating proof of concept.

Zero Cheating's long-term goal is to penetrate the primary and secondary markets over a multi-year period. By the end of Year 5, we expect to complete the following:

US Universities (Primary market):

- There are 19.6m students in the US and 5,300 universities. Zero Cheating expects to secure 20% of the entire market, which means Zero Cheating contracts with 795 Universities by the end of year 5.

Executive Education (Secondary Market):

- There are over 700k companies in the US with 20+ employees. Of those companies, some require certifications or licensure for upskilling, training, and professional development. Zero Cheating is expecting to acquire approximately 5% of those corporate firms as clients, more specifically those firms seeking to provide proctoring software services for state and federal mandated certifications and or licensure. Given the mandated state and federal requirements, we expect to capture 25% of the market by the end of year five, translating to roughly 9,000 companies in the US alone.

Global Education:

- There are approximately 45m college and university students globally. The goal is to target 1% of the entire market, which means we expect to sell to a total of 122 universities and colleges by the end of year 5.

Given the 5-year market penetration strategy, we expect to complete the following milestones:

- Y1: Complete camera prototype, software development and conduct R&D
- Y2: Penetrate the primary target market by 10% for a total of 1,060 U.S. college/universities.
- Y3: Increase market penetration by 15% of our U.S. primary target market of college/universities for a total of 25% of our target market share. Also, begin penetration of the target 9k corporate customers by 15%.

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- Y4: Continue to grow the U.S. college/university market by an additional 30%, continue to grow the corporate customers by 25%, and begin to penetrate the target of 122 global college and university schools by 5%.
- Y5: Reach the 20% market share goal of the U.S. college/university market by adding on an additional 45% of the market. Plus, we plan to continue to grow the corporate customers by 30%, and we plan to continue to grow the global college and university market by 15%.

Initial Startup costs:

The following startup costs and annual expenses are expected in the initial launch of Zero Cheating.

Startup Costs:

- Legal Contracts: $50,000
- Website: $25,000

Annual Expenses:

- Annual Marketing Expenses/growth rate: $250,000 (10% YoY increase)
- Legal/Licenses: $75,000
- Miscellaneous (Website, Accounting, etc.): $50,000

Long term objectives:

The company seeks to prepare for continued sales and growth through Y1. The company maintains the possibility of a five-year exit with a forecasted valuation of $156m (Conservative EBITDA multiple of 10x). The valuation is conservative as industry standards also suggest a 12.34 multiple according to New York University (2022). In addition, should only the primary and secondary markets be considered for exit or acquisition in Y5, the valuation stands at $149.6m.

Additionally, the forecast conservatively assumes Zero Cheating bears 100% of the cost of the cameras ($5 each). Universities often pass extra costs to students in the form of administrative or technology fees. Thus, it is highly likely this Zero Cheating would not incur this cost. The adjusted exit value increases to over $300m.

2. Mission, Vision, and Values

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*Mission:*

It is the mission of Zero Cheating to protect academic integrity through the oversight of all academic and professional examinations in online testing environments.

*Vision:*

Zero Cheating seeks to become the preferred proctoring partner for all academic institutions, testing centers, and corporate learning and development facilities around the globe.

*Values:*

Zero Cheating is guided by values established for both us and partners. Principles include:

- Protect anonymity and privacy in exam taking.
- Safeguard the integrity of the institution serving the student body.
- Enhance service and support for all test-takers.

### 3. Business Overview

The Zero Cheating approach stems from the founder's experience as an owner of a tutoring company. The founder has heard hundreds of firsthand examples of cheating directly from students either in person or group chats. In fact, he has seen students form large anonymous group chats on Discord with over 75 students sharing test questions and answers. Cheating is rampant and continues to be a detriment to the true success of the student as well as the reputation of the university. Zero Cheating developed a proprietary solution to combat the continual problem of ongoing cheating.

Other companies in industry such as Honorlock® and Examnity® attempt to solve the ongoing cheating dilemma but fail. Zero Cheating provides a patent-pending solution that improves the integrity of the exam-taking and proctoring processes.

### 1.4 Industry Overview

Millions of college students facing final exams, professionals pursuing new qualifications and others are asked to take important tests at home using programs such as Examnity®, ProctorExam®, Proctorio®, Respondus®, and ProctorU®-software designed to fight cheating by getting a human or machine to remotely watch for suspicious behavior in test takers' faces, rooms, and audio levels.

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The online examination industry assesses the applicant’s knowledge using timely and supervised methods. Online tests are scalable and a highly productive alternative to center-based exams. The scalability of online exams is one of the major factors that fuel market growth even with existing competitors. The market for online exam software is further accelerated by increasing expectations of students to take the test at any time from any device. Growing demand for holding the content secure until the test starts is also an advantage as paper leaks are a major issue faced with most institutions. While there are still digital transfers such as notes or answers passed via phone, email, or text messages, the Zero Cheating secure software and camera system prevents such violations.

Currently, the proctoring software industry sector is expected to continue to grow strong with an expected CAGR of 18.1% through 2028. The expected market size by this years’ end is likely to exceed the $500m in gross revenues from 2021, with an expectation to reach $1,578m by 2028. While the main players in industry, ProctorU®, Pearson Vue®, and ExamSoft® are doing incredibly well, data still supports the need for an alternative solution to combat the challenges those same market leaders have encountered. The current software and proctoring services are still poorly preventing and detecting students from continuous cheating on virtual exams. The entrance of Zero Cheating expects to cause an influential change in the space reducing these primary concerns.

Encountered problems also include privacy violations, compromised accessibility, complex technology requirements, and lack of fairness.

Students cheat on exams in a number of ways; however, the two most common are through usage of their cell phones and another person in the room. Students primarily use their cell phones to send and receive exam photos, and access websites such as Chegg, Quizlet, Coursehero, and Mathway. Cheating with another person in the room involves the third party being off camera but able to view test material and communicate answers.

Nearly 33% of students admit to online cheating in the U.S. market and nearly 73% reported in a survey in India admit that they have cheated. Advancements in technology like Zero Cheating’s 360-degree wide angle view camera minimizes alarming issues, reduces red flags and encourages true test taking. The wide-angle view lens ensures the student’s upper body, hands and keyboard are always visible. The student is thus unable to touch any illicit notes or devices to facilitate cheating without being detected.

Zero Cheating also uses multiple verification processes. Partner institutions may choose one or more ways to verify a student at the time of test taking.

Customers can:

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- Match the student's webcam view to appropriate identification
- Use biometric scanning - fingerprinting, retina scanning, facial recognition, and/or audio

When verifying student identity, proctoring companies compare the student's webcam image to the small photo on their student ID. Unfortunately, this process leads to errors as the student ID photo is a low-resolution version of the original photo taken and stored by the University. Conversely, Zero Cheating matches the student's webcam view to the full resolution photo taken by the University thus significantly increasing accuracy.

Additionally, some students experience discrimination due to having Attention Deficit and Hyperactive Disorder. Many of these students suffer from frequent uncontrolled movements. Students with physical disabilities are often flagged as non-compliant in comparison to the general population. Rather than benchmarked student behavior against the general population, Zero Cheating compares the student's behavior to a pre-recorded practice test by the same student. This process avoids discrimination issues by comparing the student's behavior to a more relevant baseline.

Zero Cheating hopes to partner with a world-wide vast number of testing centers, educational and certification institutions by providing its patent-pending software service solution to the industry. The company seeks to gain market share and popularity through its accurate performance and detection capabilities thereby eliminating prior industry competition.

# 5. Keys to Success

The E-learning market is only growing to greater heights with the expectation of reaching $645bn in market size by 2030. Zero Cheating recognizes the need to solve existing competitor problems and client issues within the market. Institutions are often faced with restrictions on what they can and cannot see when online exams are being taken. Privacy issues as indicated prior remain a constant issue with patrons. Zero Cheating shall be successful in reducing several pain points beginning through its' excellent patent-pending product and software. Additionally, staying ahead of the curve technologically, including an innovative cloud-based software system and a skilled IT team will allow for expedited timeliness and reduced errors.

In order to achieve Zero Cheating 's business plan objectives, it is prepared to establish its' operational practice through the following actions:

1. Complete patent-pending product and software requirements

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2. Enhance business development efforts through new and existing relationships
3. Utilize existing database of university leads that currently pay for proctoring services
4. Pay for lead source service through Salesforce® for large email and drip campaigns
5. Hire and train additional sales personnel
6. Increase customer exposure through execution of a marketing plan
7. Invest in emerging technologies to keep up with changing needs and demands
8. Embrace agility and faster innovation than the competition
9. Increase the current product portfolio as needed

# Additional Key Strategies for Success:

Both the operational and marketing strategies are central to the success of the plan. Both the operational and marketing strategies of the business plan shall be properly aligned so all objectives may be achieved with the utmost possibility.

Zero Cheating intends to spend time educating the consumer through relationship building and marketing. By educating the consumer on how to better account for privacy violations and test-taking misnomers, Zero Cheating is promoting a better-quality and more accurate proctoring experience. Accurate test-taking reporting helps to drive credibility to the brand. A strong online presence is necessary to help promote showcase the differentiating success factors of the Zero Cheating marketing strategy. Some of these key marketing strategies for success include;

- Being featured through display ads and banned on multiple social sites such as; LinkedIn®, Alignable®, and more.
- Advertising in trade and industry publications, e-books, blogs, authoritative papers
  a. Timely media campaigns during peak school registrations seasons (i.e., beginning and end of term/semesters)
- Hyper-localized mobile responsive marketing and geo fencing
- National digital print media marketing in key geographic locations
- Search engine optimization for website creation and traffic improvement

The likelihood of success for Zero Cheating is high given the business model has been proven prior with existing competitors. Zero Cheating sets itself apart through its new ways to prevent cheating, catch cheating in the act and its existing relationships in the industry. The pricing model for Zero Cheating is competitive and allows for scalability given the growth rate of the e-learning industry.

Zero Cheating is also expected to:

- Create long-term satisfaction through retargeting and re-enrollment of its' services.

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- Offer generous compensation to its' employees keeping the morale and culture of the company on the up and up. By building a strong sales team and compensating employees well, it also helps in not diluting the brand due to low-cost structure or lack of resources.
- Provide constructive to feedback to personnel on ways to interact with the customer, timeliness of responses, objections, and relationship building. Surveys and data analysis shall be used to improve the experience of the consumer and the staff.
- The Executive Team shall also contribute to the credibility of the company through their industry experience and education.

# 6. Company Summary

Zero Cheating is a software proctoring and identity verification platform for distance learning. The Company offers recorded and automated solutions for exam testing through its' patent-pending software and camera technology solutions. The Company shall look into live proctoring based on the feedback from the industry as the company grows.

Sector: Technology

Industry: Software and Tech Services

Sub-industry: Software

# 7. Company Ownership

Neil Parsont currently owns 80% of the Zero Cheating company. At this time, Zero Cheating has authorized 8m shares of common stock. Stock issuance may change dependent on funds raised and sought. The rights and privileges of these shares will be stated in the company's Articles of Incorporation.

The initial cap table prior to any funding is as follows:

Table 1: Current Ownership/Partners and Share

| Owner | Percentage of Shares Owned |
| --- | --- |
| Neil Parsont | 80% |
| Dr. Sarit J Levy | 10% |
| Mathew Bordy | 10% |

The company may seek to raise additional equity funding from its principals and outside private investor funding.

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Additional working capital will be raised depending on expected market share acquisition to effectively reach the projected goals at the end of Year 5. The current business plan includes a projected growth summary into secondary markets. Tertiary markets are not considered for preliminary gains.

*Percentages may change subject to contractual agreements with multiple parties*

### **Executive Team:**

The Zero Cheating executive team consists of its Founder/CEO and Chief Business Development & Strategy Officer, both of whom have extensive experience in the education industry.

### **Neil Parsont, Founder, Chief Executive Officer**

Neil's experience lies primarily in the education industry with a strong fervor and successful entrepreneurial spirit in the tutoring sector. Competing and winning the notable 2012 Florida Atlantic University Business Plan Competition, Neil transformed his academic pursuits into a 15-year career utilizing his newfound expertise, helping thousands of students achieve their academic goals. Neil graduated with his MBA from FAU and has continued to pursue his business ventures inclusive of raising over $500k+ in debt and equity capital for other start-ups. His latest endeavor, Zero Cheating is expected to be just as triumphant.

### **Dr. Sarit J Levy, Chief Business & Strategy Development Officer**

As a seasoned c-suite executive, Dr. Sarit J. Levy has developed and transformed multi-industry organizations to reach scalability and or acquisition. Dr. Levy has excelled in both the virtual and hyper-localized environments in business as an academic, an entrepreneur, and professional. She currently acts as the Chief Learning Officer and Chief Revenue Officer for Zschool, a world-wide university partnership organization. In 2022 alone, Dr. Levy has procured nearly $40mm in revenue through client attainment in new business increasing Zschool's net position by 42%.

Developing the first quantitative scale globally that measures firms' entrepreneurial success and innovative contributions collectively. Dr. Levy has pioneered the collaborative scale to predict the best-performing firms to date world-wide. Dr. Levy has utilized the methodology in her own organizations and has assisted firms in Jamaica, Surname, Croatia, Latin America, and Central Europe.

Dr. Levy has served as an acting CMO, CSO, COO and Advisory Board member for several organizations. An academic scholar and faculty member for universities such as New York University (NYU), and University of Miami, Dr. Levy has forged the path of building extensive educational business programs around the globe. Her academic presence and research

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pursuits have been welcomed in countries such as China, Denmark, and Sweden. Multi-lingual in Hebrew and English with a fundamental understanding of Spanish, and Arabic Dr. Levy is able to converse in diverse business environments. Dr. Levy has also been recognized as an SME in leadership, knowledge spillover, new product development, sustainability, entrepreneurship, innovation, marketing in virtual and localized alliances, an expert international negotiations. Dr. Levy is published in several double-blind peer reviewed journals around the world and has served clients on shows like Shark Tank.

Dr. Levy holds a Doctorate in Business Administration as well as a Master of Science in Computer Science and Management Engineering. She also has attended law school with a special concentration on business contracts. Dr. Levy has been a part of many successful accreditation processes, curriculum development, and influencer in business leadership and pursuit. From patent acquisition to business and marketing plan writing, Dr. Levy continually seeks to deploy successful foundations and practices for each organization she encounters.

### **Matthew Bordy, Founder Prototype House and Product Engineer**

A serial entrepreneur and product development professional, Matthew Bordy brings creativity and a unique view on the world of product development and business. Matthew is experienced in product development management and manufacturing from consulting new startups and running a product design group for a fortune 500 company. He has led and participated in numerous programs with national and international brands, such as: Office Depot, Home Depot, Lowes, BMW Design works USA, ACCO, V-Tech, Li & Fung, Big Red Roster, Emerson, SanDisk, Skill, Craftsmen, Husky, Workforce, Case Logic, and private labels.

Matthew believes that achieving success is all about building relationships, collaborating, thinking a little bit differently and adhering to timelines. With a background of working with top brands and companies throughout his career allowed him to launch his main venture Prototype House Inc. in 2013. A one-of-a-kind product development firm that is a resource for startups looking for help with product development, prototyping, engineering, and manufacturing. Mathew plays a critical role in the development of both the patent-pending camera and software being used by the Zero Cheating company.

### **8. Growth Summary**

The key elements are critical to the beginning stages of Zero Cheating's development:

- The developments of a functional remote workspace to ensure all team processes and project tasks are adhered to.
- Funding of first round investments to conclude software and technology development and testing.

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- Initiation of further research and development of existing and future services offerings, partnerships, as well as expansion into secondary and tertiary markets.
- An evaluation of current and future employees' salaries, expectations, role evaluations, assets, and necessary expenses based on market saturation and
- A comprehensive marketing plan to determine product placement, positioning, and customer orientation.

Startup funding of $50,000 was initially raised from the founder of the company for the business plan, software development, and patent procurement. Zero Cheating is now propelled to move forward into its' final development phases with marching orders to secure sales. Zero Cheating agrees to perform in accordance with the objectives outlined in the business plan in order to attain the spatial and financial objectives in the five-year pro-forma.

Current expenses as per profit and loss are built into the existing financial structure of this plan and considers future and current working capital. Any additional capital obtained through this plan, or any fund-raising exercise is expected to provide an additional boost calling for said funds to be infused into the operation of the business.

# 9. Company Location and Facilities

Zero Cheating is a virtual organization whose workforce is remote. It is incorporated in the State of Delaware. The company does not see a need to expand into a physical location at this time.

# 2.0 Product and Services Description

# Proctoring Software and Services Overview

Online proctoring involves the use of virtual tools for monitoring student activities during assessment activity. These tools (as they continue to overcome their limitations) have the potential for students to take an online exam at a remote location while ensuring the integrity, security, trustworthiness, and reliability of the online exam. This includes the authentication of the student and their identity to secure and maintain the integrity of an exam and its administration. Zero Cheating specifically overcomes the limitations through its patent pending camera technology and software system. However, to distinguish between the competition and Zero Cheating, a firm understanding, and definition of online proctoring is required.

Online proctoring has two major components. First, the availability of a web-camera on the student's computing device needs to be activated to video record the physical learning space and everything the student does during the examination period. The examiner or the proctor is able to remotely monitor this video recording. The examiner or proctor is able to identify potential cheating, suspicious movements, and posture such as talking to someone in the room, looking at a book, mobile device, or other printed media for answers. However, without using

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AI, this is completely dependent on the skill level and concentration of the proctor watching remotely. This differs with AI, as a more precise proctor experience is possible without human error. Second, is lockdown, which will prevent the students from using any other computer applications including the Internet browser, and user-computing processes (such as copying, pasting or printing) that can lead to potential cheating during the exam.

The proctoring system also monitors and records all the student's computer and internet activities during the exam such as websites that the student tried to access. The video recording of the entire exam is made available for review by the instructors or examiners either simultaneously or afterwards.

The Zero Cheating method of monitoring prevents cheating from other peripherals and technology such as; HDMI cords, casting, virtual machines, air dropping, and fake video feeds.

There are four standard product description features of online proctoring systems;

1. Authentication of the registered student taking the online exam through ID verification
2. Browsing tolerance - limiting the student from using their computer for other tasks.
3. Remote authorization and control allows the proctor to start, stop, and pause the exam when suspicious activity is identified. *Note this is for live proctoring via remote authorization and not proctor services with AI only.
4. Report generation, which reports the student's activities during a proctored exam.

Each of these features are similarly supported in the product description for Zero Cheating. However, Zero Cheating has taken the common features of authentication and enhanced the experience to detect and prevent cheating where other companies fall short.

The Zero Cheating camera and software product has the aforementioned features but strengthens the product offering through its' additional novel features, including;

- Biometric fingerprint, retina scanning, facial recognition, audio, and photo match collectively to ensure identification is authenticated unlike existing ID verification of simply matching a student photo ID to the student via a webcam view; a flawed methodology. Note that the institution has the option of using one or more of these methods to avoid discriminatory practices but that not all are needed.
- Patent-pending wide-angle webcam that shows the full upper body of the student taking the exam including the keyboard and surrounding desk area.
- Patent-pending camera also uses a direct side-view to see in and around the student without violating the student's privacy through full room panning.
- Patent-pending software visually detects phones, calculators or other illicit devices in room
- Patent-pending utility of 360-degree motion sensor to detect another person in the room
- Background filter to protect against privacy issues
- Patent-pending utility of Infrared technology that can detect communication waves and pulses of people and devices

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- Technology and software reliance on directly observing the students and surrounding areas through AI and motion sensors, reducing technology bias and discrimination.
- The patent also protects competitors from copying the Zero Cheating methodology and accompanying technologies.

In considering the right product for the educational institution several additional factors are also considered.

- Ease and flexibility of integration with the existing institutional learning management system
- Technical performance and robustness of the proctoring system (sometimes over low internet bandwidth, poor hardware capabilities or electrical power failures), level of efficient task automation, and reporting capabilities.
- Privacy protection and management, security and anti-fraud measures, and their associated costs for implementation and damage control when legal ramifications ensue.
- Seamless separate browser integration into existing learning management system, avoiding complications with multiple browsers and browser extensions.

Zero Cheating maintains features in the design and execution of its product and software that meets each of the factors listed concerned by academic institutions.

# *Product and Services Cost Description*

The price of the service is: $10.95 per student annually for institutions, and testing centers. For the secondary market of corporate clients that use proctoring service companies for licensure, the price increases to $19.95 due to a lower quantity of purchases. Institutions and test centers purchase in significantly larger quantities are thus highly discounted. Since all services are automated and use AI, Zero Cheating can proctor multiple exams for hundreds of students at the same time.

## 2.1 Competitive Analysis

There are multiple online proctoring systems and types of proctoring services. Live proctoring is one method whereby a human proctor monitors or supervises the exam virtually. The human proctors are not necessarily trained professionals but are expected to ensure the authenticity of the student and look for any red flags such as suspicious eye or facial movements or the appearance of any unverified device that could indicate possible cheating. Since there is human involvement in live proctoring there is a significant opportunity for bias, racism, and discrimination. Live proctoring also requires the exams to be scheduled at a specific time depending on the availability of the proctor on a given date and time. This has equal human involvement as traditional offline exam supervision.

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Recorded proctoring involves the video recording of camera images and logs of the student taking an online proctored exam, where the proctor reviews the recording at a later time and assesses the integrity of the exam (i.e., whether or not any fraud/cheating was committed during the exam by the student). This allows students to take an exam at any time hence allowing multiple exams to take place simultaneously. However, this too requires human intervention for reviewing the recordings, which can be challenging and difficult to scale.

In automated proctoring - human proctors do not monitor or review the entire exam, instead, the proctoring system identifies key events of possible fraud or cheating. The individual that is reviewing the exam is then alerted to assess these events to determine if fraud or cheating has occurred. This form of online proctoring is generally considered more convenient for the students as they are not required to arrange live proctors for their tests and exams. This method also avoids scheduling issues, location challenges and human proctor constraints. Artificial Intelligence is used in this scenario; however, current proctoring software still faces many issues. While there are a few competitors in the space, they have yet to solve issues related to the usage of artificial intelligence such as ID verification, jerky movements, that flaw the reporting, and the like. Zero Cheating combats many of these dilemmas with its patent pending 360-degree camera and patent pending software. Zero Cheating is also able to produce a better product with its notably secure camera system and privacy/authentication software making it more desirable across all three target markets at an efficient price point allowing for the detection and preventions of exam fraud. Current competitors often produce false positives that lead to inaccurate reporting. Zero Cheating is able to flag events more accurately by accounting for movements, sensors, full body view and stronger ID verification (See Figure 1 Three Types of Proctoring Systems).

Figure 1: Three Types of Proctoring Systems

![img-0.jpeg](img-0.jpeg)

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In addition to the aforementioned, when choosing the right proctoring partner several factors should be considered:

- Ease of use
- Flexibility of integration
- Technical performance
- Technical accuracy
- Efficient task automation
- Reporting capabilities
- Privacy protection and management
- Security and anti-fraud measures
- Associated cost

As previously noted, flexible options for online learning are on the rise with an industry reaching nearly $325bn in years to come. This growth has spilled over to the global market due to the ability to communicate and interact in a fluid online environment. The growth of the industry makes the primary, secondary and tertiary markets easily attainable for Zero Cheating through its novel product and technology service.

As online learning and exam taking becomes more popular so does the need for test monitoring. Moreover, the sensitivity of the information collected raises concerns among the academic community paving the way for Zero Cheating to perfect the proctoring process. In addition, there have been multiple federal lawsuits against the existing competitors such as Honorlock® surrounding improper usage of the technology affecting privacy of students. Current systems, like Almeira® are using audio and facial recognition but lack in preventing cheating, tab locking, multi-factor authorization and authentication, better biometrics, question bank randomization, and blockchain technology. Recent studies have shared the aforementioned information in an effort to alarm market players what needs remain in the sector. Zero Cheating challenges the current competitors by offering the likes of those same features needed. Other missing components that Zero Cheating shall choose to include in its' stages of software development may be:

- Webcam detections of behavioral fraud
- Compliance with GDPR
- Mitigating the absence
- Screen-sharing programs
- Keyboard stroke listening programs
- Technical controls to mitigate the absence of physical (spatial) controls
- Lockdown browsers

In examining several Artificial Intelligence proctoring systems there are a few that are close in comparison to Zero Cheating.

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ProctorU® is an example of an online proctoring system (OPS) that uses a microphone and webcam. It is a live proctoring system in which the proctor guides students through the entire process of an online exam, and also monitors them using the webcam. Proctors are required to ensure that no unauthorized materials are present before the start of the exam. They are also required to verify the student's identity by asking them to present their ID cards. Students are required to maintain an uninterrupted audio-visual connection to the proctor throughout the session.

Kryterion®, a widely used commercial OPS uses an approach very similar to the one used by ProctorU®. The Artificial Intelligence module of ProctorU®, however, isn't highly secure and can be deceived, which is why the company recommends using their hybrid solution to maintain high security. This hybrid solution augments automated proctoring with professionally trained live proctors, who have the ability to interrupt the test and intervene in case they suspect something.

Xproctor®, another popular OPS, authenticates students & constantly tracks and monitors them via facial recognition, behavior video streaming, audio and photographic methods. It also supports various LMS, which when installed on the person's computer, paves way for unlimited photo captures, screenshots, and video captures.

Another example of a proctoring system is the EU-funded project TeSLA®. TeSLA® aims at developing techniques for the verification of test-takers via biometrics. This involves facial recognition, voice recognition, keystroke analysis and fingerprint analysis to ensure that no impersonation is taking place, and that the answers are being given by the actual test-taker. This is currently in the European Union and is closest in proximity to some of the features

The PSI Bridge® platform makes use of a proprietary lockdown browser and a self-authentication scheme, to ensure proper compliance, while also maintaining student privacy and minimizing security risks. It is a highly secure platform that doesn't need any access to the student's computer to verify the exam's integrity, hence making it non-invasive. The exam session is recorded and stored in an LMS server that is integrated with a cloud-based SaaS. Exam logs and flagged violations are also stored, whereby the proctor can review it later.

In ProctorExam®, spatial controls are augmented by utilizing a highly innovative 360-degree monitoring system. This monitoring includes webcam, screen-sharing, and a smartphone camera positioned in such a way so as to view everything around the test-taker. It also uses facial recognition to flag cheating attempts.

Zero Cheating's patent has nearly all of the features of each of these OPS systems in one combination making it a stronger and viable competitor. In *Table 3*, a list of Online Live Proctoring companies is compiled versus fully automated Artificial Intelligence proctoring systems.

**Table 2: Online Live Proctoring Systems vs. Automated Proctoring Systems**

| Company Name | Live OLP | Fully Automated (AI) OLP |
| --- | --- | --- |
| BVirtual® | Yes | Yes |
| Examity® | Yes | Yes |

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| Global Campus Proctoring® | Yes | No |
| --- | --- | --- |
| Kryterion® | Yes | No |
| Loyalist® | Yes | No |
| Mettl® | Yes | No |
| Pearson VUE® | Yes | Yes |
| Proctorfree® |  | Yes |
| Proctorio® |  | Yes |
| Proctortrack® |  | Yes |
| ProctorU® | Yes |  |
| Respondus® | Yes |  |
| SoftwareSecure® | Yes |  |
| Tegrity® | No | Yes |

Upon a more thorough review of the features of each of the aforementioned OPS systems it is apparent that several parameters are considered when assessed by the target customer, these characteristics are:

- Camera system
- Microphone usage
- Human proctoring
- Screen share / recording
- Application lock
- Biometrics
- Gaze tracking

Many of these components are individually a part of various OPS, but none comprehensively has all of the above-mentioned features. Moreover, there is not one single system that assesses technological factors such as security and infrastructure in combination with human factors such as psychological, socio-cultural, and behavioral. There are numerous benefits to an organization when the whole picture of the student is considered and not simply collectively false reporting conduct that is slated by poor user experience design. Communication between the examiner and the examinee can be more streamlined, hassle-free and faster when considering full body movements, retina scanning for identification. Results of the examination can also be generated faster and more accurately.

As a general understanding online learning has fostered growth in the online testing market, however many of the competitors in the industry as early adopters failed to consider challenges like privacy issues, multifactor authentication, frequent body movements, whole room views, and other ethical concerns that have become a factor in exam invigilation. These concerns have given rise to uncertainty and risk in the industry allowing for new market players like Zero Cheating to join the fold in becoming not just another possible quick fix, but the solution.

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Finally, having reviewed several current competitors in the space and the previous research the following concept map details the existing Artificial Intelligence proctoring systems and the future of where it is headed (See Figure 2 - Proctor Software - Past, Present and Future).

**Figure 2: Proctor Software - Past, Present and Future**

![img-0.jpeg](img-0.jpeg)

With Zero Cheating’s entry way into this lucrative space, it shall rely heavily on learning from its’ predecessors, it’s assessment of the industry’s needs, and its ability to leverage its existing business development contacts in the industry. Zero Cheating’s provisional patent is currently only in the United States, however, should the company choose to acquire a patent outside the United States, this remains a possibility.

## 2.2 Feasibility Study

Zero Cheating is highly likely to succeed due to the competition’s inability to fully solve the industry challenges. Evaluating both domestic and international competitors reveals both groups are plagued by students circumventing their systems to cheat along with privacy and discrimination issues.

### Technical Feasibility:

The camera used by Zero Cheating is a modified version of existing technology minimizing production cost and simplifying manufacturing. The patent also includes the optional integration of a secondary side view camera to view the physical monitor negating sticky notes or other cheating items outside the viewing area of the mounted camera. The ease of use of the device supports the notion that a change is needed in order to improve the current method and process of detecting cheaters. According to a research report on proctoring services in 2020 from

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Swissnex© in Boston, universities typically invest hundreds of hours in the technical and pedagogical setup of proctoring tools. Many universities and companies spend countless hours training faculty on its uses and limitations, sending clear instructions to students, reassurance procedures and other processes to establish dishonesty in order to support an online proctoring tool. However, Zero Cheating makes the implementation process much simpler with its patent-pending AI-based software solution that accounts for many of these challenges not simply in the technology itself but in the administration and execution of prepared explainer videos and proof of concept testing and debugging prior to launch.

### **Market Feasibility:**

While proctoring solutions have been growing throughout the last decade, the pandemic was an eye-opening moment for the industry. Amid the rapid shift to online learning, universities were flustered trying to secure new remote proctoring solutions. Proctorio®, one of the largest companies, experienced a more than 500% increase in exams monitored, from 4 million in 2019 to 21 million in 2020. ProctorU®, nearly tripled from 1.5 million exams monitored in 2019 to 4 million in 2020. At the same time, live proctoring services were short-staffed by pandemic lockdowns, and some universities had to switch from live proctoring to AI- based proctoring providing room for growth and stiff, stronger competition.

By November 2020, approximately 1,923 US universities were using one or more remote online monitoring tools according to Educause.com.

### **Financial Feasibility:**

Pricing can be challenging as most contracts are custom based on the number of users, however there are general trends that the industry follows. Zero Cheating intends to fall in line with a standard cost per user business model at $10.95 per user.

Zero Cheating uses a competitive pricing strategy, matching the industry average of $10.95 per user. By including superior patent-pending cheating prevention systems at no additional cost, Zero Cheating is a higher value option for customers.

Current trends in terms of cost structure are based on types of proctoring services including:

- Lockdown browsers are typically purchased in bulk by the university. Some open-source solutions exist. Respondus® Lockdown Browser costs about $4000 - 5000 per year for an entire campus. They have a flat licensing fee 1,000 seats but unlimited licensing is available too.
- AI proctoring is generally $5 or less per exam. Students or the university can often purchase bulk or unlimited packages. These packages, if used heavily, can result in per exam costs that are less than $1. In the US, most universities pay for these subscriptions in bulk, providing the service free to students.
- Human audit of AI proctoring raises the price to around $5-8 per exam. A slightly higher cost can be expected for partial live proctoring.

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- Full live proctoring is generally $15-20 for a 1-hour exam and more for longer exams. Some companies offer packages (usually bought by students) for unlimited monitoring in all classes.
- Recent data shows approximately 2 million university online exams were proctored in 2020 according to the electronic and privacy and information center. This data supports the need for unlimited exam proctoring as the industry sector grows and more exams are taken. Hence why the major industry competitors offer licensing with unlimited usage per student. Zero Cheating follows best industry practices with the same pricing model.

The price of the current services per user are for solutions that do not fully take care of the problems like privacy and security issues. These current services also still allow cheating due to their flawed systems. Zero Cheating's entry way into the market will command the same price as Honorlock®, but with a fully upgraded AI solution. The cheating detection solution and economic benefit for the end user/customer outweighs the cost of service based on precedent standards and history.

Using project cost analysis, revenue projections, other key financial indicators and valuation methods based on entrance into the primary and secondary markets, Zero Cheating has a sturdy chance of high performance in the marketplace.

# Organizational Feasibility:

Zero Cheating is prepared to proceed forward with a strong organizational commitment and chief personnel whose experiences match those of other market leaders. Evidenced by the executive team's background, the Zero Cheating team has existing business relationships in the education and ed-tech industries. Indicators of the principles assure management prowess, resource sufficiency, and an evaluative skill set to understand the industry, market, and its' conditions.

Zero Cheating has a legal corporate structure of a C- Corporation with majority equity held by the founder, Neil Parsont. Internal principles include Dr Sarit Levy whose ownership is a 10% three-year vesting equity stake based on performance followed by Mathew Bordy with same. The leadership team at Zero Cheating is prepared to handle any legal or regulatory restrictions that may arise from any adverse situations that may arise in the industry. It is socially prepared to accept change and adjust to structure or power conditions.

# Principle roles as defined:

- Neil Parsont ensures full development control of all patent and software acquisition and assist in investor procurement.
- Dr. Sarit Levy ensures all business development efforts are made and secured. Dr. Levy will also help in any strategic and operational initiatives in the overall management of the organization as well as investor procurement. Dr. Levy's business development relationships and access to additional institutions in the higher education space holds a dollar value average of $50-$100m. Thus, Dr. Levy will leverage these significant contacts holding an equity position in Zero Cheating.

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- Mathew Bordy, Founder of Prototype House, ensures all prototype and software development, testing, monitoring, tweaking and product manufacturing meet the highest quality and expectation for industry demand. Investing under the entity of Tech Pros, LLC - his company employs all the software and hardware experts necessary for development and continuous improvement. As opposed to receiving payment in excess of $100,000 for development of the first full software version, Bordy chose to contribute this work as an equity investment at no cost to Zero Cheating.

The feasibility study concludes the following:

1. The market study meets demand, aligns with the competition, and serves a viable need and opportunity.
2. The financial feasibility of the business model is clearly defined and supported by the objectives and anticipated performance.
3. The technological design and patent acquisition attest to the functionality, fitness, novelty and aesthetics of the product and services to be provided.
4. Pre-startup legal structures and operating agreements are in place.
5. A plan for maturity of operations over five years, financial stability, growth, and viability are projected and substantiated by industry patterns.

Overall feasibility is defined as executable at this time.

### 2.3 Market Analysis and Summary

The rise of online programs, increasing digitization of course materials, and the shift to remote learning during the pandemic have prompted universities to seek new solutions to ensure the integrity of assessments. In the United States, there are few specific industry experts that have led the wave of commercial solutions promising to deter and catch cheating exam takers. From surveillance to control devices to live proctoring, companies have outsourced software avoiding data and communication service processing agreements and 'pretending' to use qualified AI algorithms designed to meet the needs of the institutions according to EPIC standards per recent federal law suits. However, these algorithms are not publicly available nor verified by any independent third-party quality assurance. Thus, many of the industry players have experienced problems in their execution along with data privacy complaints. This scenario justifies need for a better product and protective service.

Many existing services have come under criticism for AI bias and loose privacy protections. However, as the online education industry expands its footprint so does the need for qualified remote surveillance that can detect and prevent academic dishonesty with clear scrutiny. Although not the only solution, with the rise of virtual instruction and learning there has been a steady increase of testing fraud. ProctorU® reported that its cheating rate in the months before the pandemic (January-March 2020) was 1%, while from April-June 2020 the cheating rate skyrocketed to 8%. In an article by the Washington Post (2020), surveys from post-pandemic students utilizing ProctorU reported they are four times more likely to cheat in online classes compared to in person, yet the reliability of a live proctor is not any better.

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Online proctoring can reduce cheating if factors that reduce bias are considered. Increases in students caught cheating may simply reflect overall dishonesty rising at the same or faster rate, as opposed to a higher rate of discovery. Hence, why Zero Cheating seeks to detect and prevent cheating even before it happens. Most evidence for effectiveness of utilizing an AI proctoring tool and or service relies on anecdotes or the suspect claims of the companies themselves. One of the few concrete pieces of independent, peer reviewed research comes from a 2020 study of two large online courses (economics and geography). The instructors taught the courses without proctoring software for multiple terms, then introduced the software. They found that test scores went down on average by 10-20% after the software was introduced. In particular, they found a much higher standard deviation in proctored exams, with more very low scores. The lower average and higher proportion of failed exams indicate a likely decrease in cheating resulting from the proctoring software. There are many reasons why students cheat, including:

- Students not managing their time effectively to study
- Students do not care about the course as it may not be a part of their major or is an elective, they are not too interested in.
- The higher the stakes of the exam, the more likely the student will cheat
- Students following the 'crowd'
- Anonymity as a driver for cheating. They feel less ethically bound when hidden behind a screen or engaging an algorithm
- Cheating in greater numbers when there is an opportunity to do so
- Students believe they won't get caught

Students can easily circumvent the system since there is not currently a 100% accurate solution to the problem. A recent article in the NY Times featured 10 students who had cheated with remote proctoring, and none had been caught. One of the students estimated that 90% of fellow classmates had cheated while being proctored despite being monitored by the system's software. Many students reported they felt more willing to cheat because the software created a mentality that appeared to be us vs. them causing them to be less invested in honesty. Zero Cheating intends to provide a level of comfort for the student that currently is ignored by competitors. Zero Cheating brands itself as a lifestyle helper to their success by and through welcome videos explaining the motivation to assist the student to be successful rather than create an environment of negativity, blame and motivation to cheat. Respecting the student's privacy is at the forefront of consideration in these videos. Zero Cheating includes a background filter protecting the privacy of the student without compromising its ability to detect cheating. Zero Cheating transparently explains to students its methods to detect and prevent cheating creating more trust and compliance than other services.

The current proctoring software in the market also creates many false positives and mostly just flags loud noises, talking, or lots of facial and eye movement but does not consider innocent behaviors such as involuntary movement. One software, ExamSoft®, flagged one third of the exams for the California Legal Licensing (Bar) exam (over 3,000 flagged). After review, 98% of the flagged cases were cleared. False positives included staring away from the screen for

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too long, background noises, or fidgeting, which are blameless, common occurrences. The Zero Cheating solution is reducing the margin of error for false movement if and when students fidget unintentionally such as when they have underlying disabilities such as Attention Deficit and Hyperactive Disorder fidget unintentionally.

Despite the positive attributes of current software solutions, students still often successfully cheat in the following ways:

- Use devices such as; cellphones, calculators or virtual machine software off camera
- Use extra notes off camera
- Use sticky notes on the monitor or behind the computer
- Write down test questions/answers to share with classmates
- Disallowed notes on cheat sheet
- Have an extra person outside webcam view to help
- Cast the screen to another person for help via:
  - HDMI
  - Air Dropping
  - Blue Tooth
  - Other
- Fake video feeds
- Use hidden earpieces
- Place their phone off camera and out of view
- View notes stored in calculator
- Run a virtual machine
- Hide their phone in a calculator shell

Despite the current proctoring services not having specific functions to detect and prevent all of the above cheating methods, universities still see remote proctoring as an extremely viable solution giving way for Zero Cheating to provide a better product and experience. Zero Cheating's software and camera system is specifically programmed to prevent and detect all of these methods, thus significantly reducing cheating.

Since the pandemic began, rates of cheating have also hit record highs with reports of one in fourteen students breaking the rules. A global analysis of data on three million tests that used the ProctorU® proctoring platform found that "confirmed breaches" of test regulations (clear evidence of misconduct) were recorded in 6.6 percent of all cases. This is nearly 14 times higher than the 0.5 percent misconduct rate detected in the 15 months prior to the start of the coronavirus pandemic, which triggered the widespread adoption of online assessments and online proctoring services.

Additionally, an in-depth review of some of the more popular proctoring systems noted in the competitive analyses, feasibility study, and market analyses has led the Zero Cheating team to realize it's unique position as an entrant into the marketplace

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**Table 3: Evaluation Matrix of Proctoring Features**

| General Proctoring Features | ProctorU® | Respondus® | Proctorio® | AIProctor® | US |
| --- | --- | --- | --- | --- | --- |
| Live human proctors available | Yes | No | No | No | No |
| Internet required | Yes | Yes | Yes | Yes | Yes |
| Secure/Encrypted Transfer of Data | Yes | Yes | Yes | Yes | Yes |
| Student can book any time for exam | No | No | No | No | Yes |
| Training provided | Yes | N/A | Yes | Yes | Yes |
| Proctor provider certified | Yes | N/A | Yes | Yes | N/A |
| Students can interact with proctors | Yes | N/A | Yes | Yes | N/A |
| Live Support | Yes | N/A | Yes | No | Yes |
| Proctor able to see students screen | Yes | N/A | Yes | Yes | N/A |
| Recorded video reviewing option | No | Yes | Yes | No | Yes |
| Automated proctoring | No | Yes | Yes | No | Yes |
| User required to authenticate | Yes | Yes | No | Yes | Yes |
| Password provided/required | Yes | Yes | No | Yes | Yes |
| Student ID verification | Yes | Yes | Yes | Yes | Yes |
| Recording storage option | Yes | Yes | Yes | Yes | Yes |
| Test review option | No | Yes | Yes | No | Yes |
| Incident logs with date and time | No | Yes | Yes | No | Yes |
| Customizing options for institution | No | Yes | Yes | No | Yes |
| Hides taskbar | No | Yes | Yes | No | Yes |
| Hides desktop | No | Yes | Yes | No | Yes |
| Stops minimizing window | No | Yes | Yes | No | Yes |
| Stops copying and pasting | No | Yes | Yes | No | Yes |

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| Cheating Detection | ProctorU® | Respondus® | Proctorio® | AlProctor® | US |
| --- | --- | --- | --- | --- | --- |
| Retina scanning | No | No | No | No | Yes |
| Fingerprint authentication | No | No | No | No | Yes |
| Keystroke analytics | No | No | Yes | No | Yes |
| Ability for facial recognition | No | No | Yes | No | Yes |
| Ability for voice recognition | No | No | Yes | No | Yes |
| Side-view camera | No | No | No | No | Yes |
| Full body view | No | No | No | No | Yes |
| Room panning (front facing) | Yes | Yes | Yes | Yes | Yes |
| Room panning with background filter (side and all around) | No | No | No | No | Yes |
| Logs reports | No | Yes | Yes | No | Yes |
| Stops other applications | No | Yes | Yes | No | Yes |
| Stops starting other applications | No | Yes | Yes | No | Yes |

Despite the competition, it is evident the features of the Zero Cheating camera and software solution detect and prevent cheating more accurately. Currently, the United States and Canada take the lead in requiring proctoring software at their learning institutions and test centers, although many countries such as India and China are not far behind. As the global online education market expands so does the need for proctoring software services. Upon review of the market summary and analysis, the market segmentation is highlighted as follows:

### Market Drivers:

- Increase in Number of Online Exams Due to Current Pandemic
- Rise of Interactive Teaching Technologies in the Corporate and Educational Sectors
- Shift in Economies of Scale whereby Education Stimulates Business and Technological Growth

### Market Opportunities:

- Increased Security Features in Proctoring Software
- Cost-Effective Software for Online Exams and Assessment

### Market Deployment:

- Cloud-Based and or On-Premises
- Advanced Automated Proctoring
- Recorded Proctoring
- Live Online Proctoring

### End User Application:

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- Universities/Learning institutions
- Testing Centers
- Companies
- Certification/Licensure programs
- Government testing
- K-12 virtual learning market
- Other educational opportunities

**By Region:**

North America
Europe
Asia Pacific
Middle East and Africa
Latin America

**By Size:**

United States only: $613.3m
CAGR: 17.4%
Projected: $1,605.8m by 2028

**By Analysis:**

Online exam proctoring is primarily used in following application groups: Education, Certification, Licensure, Corporate, etc. and Education in general. These same groups, established as the primary and secondary markets for Zero Cheating have taken up about 51.66% of the global market in 2019.

Americas is the largest sales region of Online Exam Proctoring in the world in the past few years. Total Americas market took up about 42.68% of the global market in 2019, Europe followed with 32%, and APAC took about 22.25% in 2019.

The United States is both at the forefront in developing online exam proctoring platforms and users of those platforms. In 2019, USA market size was valued at $114.37m. The market is expected to reach $1,605.8m by 2028.

**Market Trends:**

- Rapid Development of Anti-Cheating Technology
- Availability of Wide Range of Media and Learning Support Technology
- User Cheating Detection and Prevention

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- Supporting Non-Discriminatory Privacy and Security Measures

## 2.4 Market Strategy and Industry Trends

The preliminary marketing strategy for the proctoring service and software industry includes both the primary and secondary market sector with an interest in continuing on to global expansion. The strategy for penetrating the two sectors with a possibility for a third is by and large through mimicking competitor's social and digital efforts. The competition has paved the way for success through a combined approach of social sharing, digital paid-advertisements, email drip campaigns, retargeting techniques, personalized story-driven testimonials and more. With the business development and marketing experience in the higher education and corporate markets to back them, Zero Cheating is poised to position itself as the number one proctoring software service in its industry sector.

Zero Cheating shall provide a concentrated marketing strategy for its services to its' primary and secondary markets that should:

- Increase interest and validation of the patented product and software through digital paid advertising of confirmed testing success. Social Media sharing includes video testimonials of users participating in the testing process. Testimonials shall also be shared in email outreach campaigns.
- Generate email outreach and drip campaigns as reminders to secure client contracts
- Increase company brand name recognition through timely press releases
- Centralize marketing efforts through automation processes such as Marketo®, Hubspot® and other marketing automation alternatives.
- Develop case studies with proof of practice to enhance verification and validity in marketplace.
- Build a social media presence/audience to gain customer insights and spread organic awareness of the company's product and services.
- Generate auto-posts regarding new features and success stories to stay on the minds of prospective customers.

The strategy to pierce and grab hold of the existing market currently acquired by competitors can be achieved as follows:

1. Through swift implementation in Spring of 2023 of the fully tested software and camera prototype via proof of concept with participating universities.
2. Zero Cheating has sales personnel with a vast and reliable network in the primary and secondary customer base.
3. Zero Cheating has a provisional utility patent on its' product and is creating a proprietary software and proprietary camera.
4. The current solutions still have not solved the problem in its' entirety leaving room for

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other players in the market.

5. The industry segment of virtual learning is only continuing to grow as is the proctoring software segment, both at instrumental rates.
6. The product and service are generalizable to multiple types of organizations domestically and internationally.
7. The proctor servicing and software sector is expected to grow at a CAGR rate of 16.4% until 2028 with expectation of continued growth.
8. The proctor servicing and software sector was valued at $54m in 2019 with expectations to increase to $1,187m by 2027.

**Target Markets:** all located in the United States

- Universities and Colleges in the United States
- Corporations with Educational Learning requirements or tuition reimbursement for certificate/licensure programs

**Target User:** all located in the United States

- Students enrolled in junior college, undergraduate, graduate, post-graduate, post-doctoral programs
- Corporate executive students enrolled in certificate or licensure programs

**Marketing Materials:**

- Zero Cheating website *Partner Institutions may also feature the Zero Cheating brand logo on their website as a user of their services.
- Social media marketing
- Paid Advertising
- Email campaigns

**Company Website Strategy:**

The company website strategy includes various offering options for the prospective partners. It shall also include detailed components and features of the product and service offerings. Data and case studies are also be used to support the initial outreach. The following contribute to the company website strategy:

- Utility patent information
- Feature chart with competition analysis
- Usage Benefits of the product
- Usage Benefits of the service
- Survey results of usage
- Testimonials from customers (video, written, other media)

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- Sample testing evaluations
- Leadership and Support personnel information
- Downloadable brochure
- Contact form for more information
- Contact information for concerns
- Chatbot features with AI machine language/learning capability
- Policies on EEOC and ADA Compliance
- Social media links for company
- Artifacts (such as; blogs, infographics, articles, surveys, and more) on industry sector and landscape

*Social Media Strategy:*

Activity on social media and formalized digital press releases are critical to the brand awareness mission of the company. Actively engaging the digital audience is critical to exceed current competitors' market share. The brand shall represent itself as the experts in industry and provide support to demonstrate same. The goals of the social media marketing mix are to:

- Maintain active listening profiles
- Engage potential customers through brand awareness
- Educate the target market of the extensive cheating violations
- Highlight the failures of the competition and share the company's differentiators with prospective customers
- Generate an alignment with the student to recognize the value of Zero Cheating as a helper and not the enemy so as to ensure social acceptance
- Create curated buzz around the benefits of the product and service
- Serve as an informational guide and education tool to prospective partners
- Emanate value in utilizing the Zero Cheating proctoring method
- Provide evidence to support said value

These social media followers should be a balance of university or college partners, past students, potential students, professional organizations, industry groups, colleagues of former students, corporate partners, business owners, department directors, and any other potential customers and users.

The following general social media platforms are likely be utilized for brand awareness:

**LinkedIn®:** Based on the industry and prospective customer, utilizing LinkedIn® for the primary social media campaigns are a strong solution. Both universities and corporations alike utilize LinkedIn® for social discussion. Additionally, students engage on LinkedIn® as well by participating in study and industry groups. Leveraging the LinkedIn® sales accelerator model would also allow for running a series of paid ads. The LinkedIn® student user is already expecting to engage with peers in courses, take exams and interact in study groups, while the

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universities and corporations are looking to network, gain professional insight and share in prospective opportunities for test-takers.

Included in the Zero Cheating marketing and advertising strategy is group engagement and multi-tagging of profiles on LinkedIn®.

**Facebook®:** There is a benefit to the company having a Facebook® page as it is still the most popular social media platform. The biggest benefit from Facebook is the paid advertising. Zero Cheating can target potential school news sites and engage them during their social media time. Social media outlets also allow for Zero Cheating to reinforce its brand and preeminence in undergraduate, graduate, and executive education and target potential partners.

*Supporting Sites for Industry Advertising:*

Zero Cheating can share artifacts, podcasts, and blogs from the following media platforms on its personal social media accounts in an effort to gain traction in the marketplace.

- Podcast: Highereddive.com on Feedspot®
- Podcast: WENR - World Education News and Reviews
- Website with artifacts: Faculty Focus - Higher Ed Teaching and Learning
- Website: The Chronicle of Higher Education
- Website: Highered.com
- Podcast: Ellucian - Let’s Talk Higher Ed
- Blog: Ruffalo, Noel Levitz
- Blog: Liasion Higher Education
- Blog: The blackboard blog
- Blog: Today’s Learner

Zero Cheating is creating social media pages for current social media platforms in which the customer utilizes. Organic postings and paid advertising collectively are an excellent way to increase brand awareness.

Organic posts: These posts must offer something of value to the followers. The curated posts motivate and spark discussion and engagement amongst followers and their network.

- Product highlights: Snippets of product and software in use, as well as customer services and technical issues cured
- Blog articles on industry
- Curated articles written on subject matter related to product and service
- School spotlight when goals have been attained in achieving desired results
- Product and software reviews through Trustpilot or other verified review program
- Industry quotes from leadership
- A celebration of most effective techniques

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- Updates on new patent product and software features or improvements
- Updates on all new partnerships
- Video vignettes from faculty approval and testimony
- Curated videos on industry expertise
- Webinars or lectures from experts in industry

# Communication:

Zero Cheating's communication strategy entails putting social media links on all networks, videos, broadcasting, and other items such as; emails, brochures, and banner ads. Zero Cheating's communication strategy expects to enhance its customer following of the company's social media profile, and organically grow its audience.

Zero Cheating uses MailCharts® to track competitors' emails, offerings, and communication.

Zero Cheating expects to invite registered users to follow specific profile and social media pages in an effort to boast about their Zero Cheating experience on exams. The Zero Cheating experience includes badges for compliance that exam takers can post on personal social media profiles. Users can also tag the proctor software company in their posts increasing awareness and verifying the legitimacy of the brand.

Zero Cheating is providing brochures, an FAQ page on their website as well as Q&A sessions in live webinars, all shareable with customers.

Zero Cheating is going to thank faculty, corporate clients, and students alike for putting their trust in the Zero Cheating brand. All responses shall be positive and uplifting with a stated call to action.

# Paid Advertising Strategy:

All paid advertising is expected to have Zero Cheating branded graphics and posts via social media. Zero Cheating intends to boost small, targeted promotions of ads to potential clients by setting the parameters in accordance with Zero Cheating's needs. Said parameters may include but are not limited to; company, university, number of employees, revenue, age range, job titles, or other fields to expand possibilities to reach future clients. The specific demographics represent the largest university and corporate headquarter 35opulations in the United States. Gathering the demographic data helps to provide Zero Cheating an advantage by using a mass market approach and reaching out to those states with the most universities and student populous. All ads shall have consistent branding and messaging. Said paid advertising shall fluctuate depending on company and market needs. An outline of prospective social advertising and costs are outlined below.

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A:B test campaigns for Zero Cheating of selected posts for $15-$30 per post to see what draws the most interest. Paid ads are then selected based on the data outcome from the A:B testing.

Paid Advertising for Zero Cheating:

LinkedIn Marketing campaigns for each program are an important part of growing brand awareness as well as capturing leads by connecting with thought leaders and decision makers in industry.

Campaigns shall highlight students at the top of their class, videos of proven results, getting ahead of the competition, learning new strategies, using proven methods of success.

Boosted posts on LinkedIn and FB are an excellent way to get a further reach than simply followers by creating new followers and expanding the company network.

Sponsored ads on Google® and social media promoting the service, educational webinars on the benefit of the product and or any specials/discounts for new universities or corporate clients joining the Zero Cheating client roster.

Calls to action in the advertisements shall be includes such as:

- Sign Up
- Get More Information
- Download a Brochure
- Download an Infographic
- See What Others Are Saying Testimonial Flyer
- Schedule a Meeting
- Watch a 1-Minute Testimonial Video
- Free Trial of Software and Service

Email Marketing Strategy:

A targeted double opt-in email campaign is highly effective for qualifying leads and ethically marketing Zero Cheating services. It assures 100% of potential customers purposefully opt in to receive email communication from Zero Cheating and are interested in the news share.

All Target Databases receive a quarterly newsletter from Zero Cheating. Included is information on new products, statistics, and data to support usage of services. Examples of data may include; percentages of cheating students, incorrect evaluations or authentications by other parties, and alternative methods in which Zero Cheating can solve problems in the industry. The newsletter may also hold highlights or contests for educators with lowest percentages of cheating

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students. Engaging universities, students and corporations alike helps to uphold relationships and ensure repeat business

Email follow-up strategy for inquiries from organic or paid-for advertising services includes a customer centric modern marketing approach and journey inclusive of a personalized landscape.

*Email Customer Journey:*

Educational support services and other educational type companies send an average of 1.3 - 2.8 emails per week. The same journey shall be applied to the email strategy with Zero Cheating. If targeted or inquiry received (lead time varies once proof of concept and targeted database has been tested):

- 24 hours: Personalized email with brochure on program
- Day 7: Reminder with video testimonial
- Day 10: Reminder with CTA for meeting request
- Day 17: FAQ with CTA for free trial
- Day 24: Follow-up personalized email and 30 second explainer video
- Day 30: Newsletter, CTA with discounted pricing

All emails link to the website, social media pages and calendar to schedule introductory calls to discuss the offering further. All emails encourage replies if they have questions and are tracked accordingly for changes needed or conversion.

Additional email strategies shall be put into place once the institution or corporation has onboarded in an effort to ensure that the student takes the exam in a timely manner and in accordance with the Zero Cheating requirements.

Sample Email to Remind Student (user) for Exam Session:

From: noreply@Zerocheating.com

Date: February 17, 2023 at 10:07:49 AM EST

To: MaryJones@hotmail.com

Subject: GRE Exam Scheduling Invitation

**Important Update** Please make sure that you are using the current version of Chrome and have downloaded the Zero Cheating Chrome extension available at http://bit.ly/zerocheatingchrome.

Hello MaryJones@hotmail.com,

You have an upcoming test: GRE Admissions Test

You need to schedule and take your exam before 2023-03-01 at 12:00AM (UTC+0000).

You can accept the invitation here: http://go.zerocheating.com/invitations

Please login at your earliest convenience to schedule your exam. Watch our Pre-Exam Checklist video so you are fully prepared for your exam session. Please visit www.GREcenter.org/zerocheating for additional details on taking the exam including GRE's general rules and testing reminders.

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Please call Zero Cheating at 855-555-1111 or email support@zerocheating.com if you have any questions.

Good luck on your exam!

The GRE admissions team and Zero Cheating

### *Marketing expenditures:*

Zero Cheating plans on taking a modern marketing approach that is customer centric focused using personalized and targeted campaigning and automation processes to ensure consistent information is shared with its target customer and end-user. The current executive team has existing relationships with university and corporate partners. Connections serve as a key customer acquisition strategy. Relationship building efforts have a lessened lead time when customers are familiar with the selling party making it easier to procure clientele.

The preliminary budget for marketing shall be a minimum of $250,000 per annum with a Y1. The marketing expenses will heavily focus on delivery by the Chief Business and Development Officer Y1-Y3 through sales team development, email outreach, social influencing, and social reach. Advertising through Google AdWords®, Facebook®, LinkedIn® and Instagram will be components of the marketing efforts.

**Table 4: General Marketing Plan Assumptions**

| General Marketing Plan Assumptions |
| --- |
| 1. Phase 1 (Startup) - Soft launch, testing, preliminary business development of university outreach and establish marketing presence |
| 2. Phase 2 (Year 1) - Continue US market penetration with stable social marketing |
| 3. Phase 3 (Year 2) - Expand outreach to include corporations - no major budget change |
| 4. All staff is paid at premium so we can recruit the best. |
| 5. Continue expansion domestically per financial objectives |
| 6. Continue expansion domestically annually per financial objectives - option for international market penetration |

### *Additional assumptions:*

- Facebook®: We analyzed 13,798 institutions. Monthly reach to 1% of institutions for a total of 138 institutions (11.5 per month) on an approximate $140 budget per university per month is $19,500 annually or $1,625 per month in spend *number of institutions can decrease with higher spend if needed based on response rate, impressions, engagements, etc.
- LinkedIn®: We are interested in focusing on U.S. universities Y1, with 5300 universities nationwide. Display ads, banners, and other engagement efforts for all U.S. universities

38

featured on LinkedIn will utilize 30% with a monthly spend of $1950 for a total of $23,400.

- • Instagram®: We assumed Instagram would have similar results as Facebook since they are connected but based on 10% of the marketing budget since universities are more likely to interact on their FB page than IG for a total spend of \$3,000.
- • Snapchat®: Can be mildly used to market and bring attention to teenagers and parents of the inaccuracies of current solutions and to promote positive and accurate exam taking due to the privacy and security issues. The total spend for Snapchat® at 5% of the budget is \$1,500 annually or \$125 monthly.
- • Twitter®: Acts as a news feed for higher education administrators who will gain exposure to the brand by Zero Cheating posts of success rates and other statistics in bite-size information under 160 characters in length. Twitter promoted ads average about \$0.25 to \$2 per action. Twitter follower ads average about \$2 to \$4 per follow.
- • Video Production: Video is proven to increase Facebook and Instagram engagement. We can invest \$150 per video and create 5.5 new videos per month as part of campaign.
- • University Outreach: We can host conferences or attend conferences where 30-50 university representatives can attend an introductory session. We can do 2 of these per month. We will also supplement online video examples of house the product and service work for continued social shares and engagement.
- • Influencer Payments: Small stipends of \$150 can be offered to influencers in exchange for them promoting Zero Cheating, participating in video ads, or other activities.
- • Bloggers and Content Marketers: Bi-weekly blogs can be written for \$75 per blog.
- • Graphics and Infographics: Professional graphics can be created to accompany blogs and social media campaigns for \$40-50 per graphic.
- • SEO Analysis Subscription: We review website and keyword statistics weekly to determine how we can improve. A service such as Alexa.com is \$149 per month or 15% of our SEO and Content Marketing budget.

*General Expenses for Marketing Assumptions:* *Note this is a general marketing budget with a conservative minimum investment of $145,000 expenditure for Y1 per the financial overview of this plan. These assumptions are slightly lower with the expectation that this number will increase depending on funding, timing of deployment, and market forces in industry

**Table 5: General Expenses for Marketing Assumptions - Y1**

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| Advertising | Y1 |
| --- | --- |
| Business Development | $70,000 |
| Social Advertising | $63,700 |
| SEO & Content Marketing | $12,000 |
| Total: | $145,700 |

**Table 6: Business Development Expenses**

| Business Development (Y1) | Allocation % | M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | M9 | M10 | M11 | M12 | Total: |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| University Outreach | 55% | $3,208 | $3,208 | $3,208 | $3,208 | $3,208 | $3,208 | $3,208 | $3,208 | $3,208 | $3,208 | $3,208 | $3,208 | $38,500 |
| Meals & Entertainment | 10% | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $583 | $7000 |
| Influencer Payments | 35% | $2042 | $2042 | $2042 | $2042 | $2042 | $2042 | $2042 | $2042 | $2042 | $2042 | $2042 | $2042 | $24,500 |
| Business Development Total | 100% | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $5,833 | $70,000 |

**Table 7: Social Advertising Expenses**

| Social Advertising (Y1) | Allocation % | M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | M9 | M10 | M11 | M12 | Total: |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Facebook | 25% | $1625 | $1625 | $1625 | $1625 | $1625 | $1625 | $1625 | $1625 | $1625 | $1625 | $1625 | $1625 | $19,500 |
| Instagram | 10% | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $3,000 |
| Snapchat | 5% | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $1,500 |
| Twitter | 5% | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | $1,500 |
| LinkedIn | 30% | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $1,950 | $23,400 |
| Video Production (YouTube, Vimeo, Vine, Instagram) | 10% | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $3,000 |
| Google Keywords | 15% | $975 | $975 | $975 | $975 | $975 | $975 | $975 | $975 | $975 | $975 | $975 | $975 | $11,700 |
| Social Advertising Subtotal | 100% | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $5,300 | $63,700 |

40

**Table 8: SEO and Content Marketing Expenses**

| SEO & Content Marketing (V1) | Allocation % | M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | M9 | M10 | M11 | M12 | Total: |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Bloggers & Content Marketers | 43% | $431 | $431 | $431 | $431 | $431 | $431 | $431 | $431 | $431 | $431 | $431 | $431 | $5,172 |
| Graphic Designers/ Infographic Designers | 25% | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $3,000 |
| Email Marketing Software | 7% | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $70 | $840 |
| Marketing Automation Software | 10% | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $1,200 |
| SEO Analysis Subscriptions | 15% | $149 | $149 | $149 | $149 | $149 | $149 | $149 | $149 | $149 | $149 | $149 | $149 | $1,788 |
| SEO & Content Marketing Subtotal | 100% | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $12,000 |

# *Preliminary Marketing Budget Chart 1:*

**Chart 1: Marketing Budget Allocation by Percentage**

![img-0.jpeg](img-0.jpeg)

The preliminary marketing budget considers social advertising as a cost factor. One of these components includes Google AdWords. For the Google AdWords placement and costs under the social advertising *Table 8*, the following 100 keywords for the Proctoring Software category are available by most commonly used words or phrases. In addition, the keywords that the

41

competition is using in the marketplace is placed in successive tables below. In determining which keywords show relativity and intent, the following factors are used:

- Cost per click
- Keyword difficulty
- Number of results
- Volume
- SERP features

The keywords are those used by multiple competitors and the cost per click is outlined below.

### Keyword: Proctoring Software

**Table 9: Proctoring Software Key Words**

| Keyword | Related | Volume | Keyword Difficulty | CPC (USD) | Competitive Density | Number of Results | Intent | SERP Features |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| active proctoring | 0.05 | 30 | 39 | 0 | 0 | 313000 | Commercial | Site links, Video, People also ask |
| adia proctors | 0.05 | 30 | 49 | 0 | 0 | 61700 | Informational, Transactional | Reviews, Site links, Video, Image pack |
| ai proctored online assessment | 0.1 | 50 | 26 | 0 | 0 | 121000 | Informational | Site links, FAQ, People also ask, Video carousel |
| define proctored | 0.05 | 880 | 46 | 0 | 0 | 272000 | Informational | FAQ, Video, People also ask, Knowledge panel |
| define proctoring | 0.05 | 320 | 50 | 0 | 0 | 106000 | Informational | FAQ, Video, People also ask, Knowledge panel |
| definition proctoring | 0.05 | 50 | 46 | 0 | 0 | 1.9E+07 | Informational | Featured snippet, FAQ, Video, People also ask |
| e proctoring moodle | 0.1 | 90 | 33 | 0 | 0 | 38800 | Informational, Transactional | Reviews, People also ask, Video carousel |
| ets proctor login | 0.05 | 50 | 42 | 0 | 0 | 513000 | Navigational, Transactional | Reviews, Site links, Video |
| how to cheat on a webcam proctored exam | 0.05 | 50 | 49 | 0 | 0 | 95 | Informational | Featured snippet, Site links, FAQ, Video carousel |
| how to know if canvas is proctored | 0.05 | 480 | 42 | 0 | 0 | 221000 | Informational | Featured snippet, Site links, Video, People also ask, Video carousel |
| meaning of proctored | 0.05 | 720 | 38 | 2.18 | 0 | 559000 | Commercial | Reviews, Video, People also ask |
| my proctor | 0.05 | 140 | 27 | 0 | 0 | 3E+07 | Informational | Reviews, Site links, Video, Image pack |
| proctor computer definition | 0.05 | 260 | 53 | 0 | 0 | 1630000 | Informational | Featured snippet, FAQ, People also ask |
| proctor definition computer | 0.05 | 320 | 62 | 0 | 0 | 2130000 | Informational | Featured snippet, Reviews, Video, People also ask |

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| proctor y | 0.05 | 70 | 17 | 0 | 0 | 2.4E+07 | Informational, Transactional | Site links, Video, People also ask, Image pack, Video carousel |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| proctored definition | 0.05 | 720 | 50 | 0 | 0 | 441000 | Informational | Reviews, Video, People also ask, Knowledge panel |
| proctored mean | 0.05 | 1300 | 45 | 2.18 | 0 | 525000 | Informational | FAQ, Video, People also ask |
| proctored meaning | 0.05 | 2400 | 44 | 2.18 | 0 | 5.2E+07 | Informational | Video, People also ask |
| proctoring def | 0.05 | 1300 | 50 | 0 | 0 | 1060000 | Informational | Video, People also ask |
| proctoring define | 0.05 | 1300 | 59 | 0 | 0 | 1.7E+07 | Informational | Reviews, Video, People also ask, Knowledge panel |
| proctoring definition | 0.05 | 1000 | 51 | 0 | 0 | 4.6E+07 | Informational | Featured snippet, Video, People also ask, Image pack |
| proctoring enabled meaning | 0.05 | 170 | 52 | 0 | 0 | 28700 | Informational | Featured snippet, FAQ, Video, People also ask |
| proctoring mean | 0.05 | 590 | 55 | 2.18 | 0 | 408000 | Informational | FAQ, Video, People also ask |
| proctoring meaning | 0.05 | 2400 | 51 | 2.18 | 0 | 4.7E+07 | Informational | Featured snippet, Video, People also ask |
| proctoring para universidades | 0.05 | 40 | 9 | 0 | 0 | 0 | Commercial | Reviews, Video, People also ask, Image pack |
| proctoring que es | 0.15 | 40 | 16 | 0 | 0 | 600000 | Informational, Transactional | Reviews, Site links, Video, People also ask, Knowledge panel |
| proctoring settings | 0.05 | 40 | 42 | 0 | 0 | 232000 | Informational | Featured snippet, People also ask, Video, carousel |
| sistema de proctoring | 0.1 | 50 | 26 | 0 | 0 | 44000 | Informational | Reviews, Site links, Video, People also ask, Image pack |
| what does proctored mean | 0.05 | 590 | 56 | 0 | 0 | 804000 | Informational | Featured snippet, Reviews, FAQ, Video, People also ask |
| what does proctoring enabled mean | 0.05 | 90 | 49 | 0 | 0 | 34300 | Informational | Featured snippet, Site links, FAQ, Video, People also ask |
| what does proctoring mean | 0.05 | 260 | 54 | 0 | 0 | 223000 | Informational | FAQ, Video, People also ask, Knowledge panel |
| what is proctor | 0.1 | 390 | 50 | 1.58 | 0 | 5.9E+07 | Informational | Site links, FAQ, Video, People also ask, Knowledge panel |

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| what is proctored | 0.05 | 880 | 50 | 1.58 | 0 | 6900000 | Informational | Reviews, Site links, FAQ, People also ask, Video carousel, Knowledge panel |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| what is proctored mean | 0.05 | 40 | 48 | 0 | 0 | 2.9E+07 | Informational | Featured snippet, Reviews, Video, People also ask |
| what is proctoring | 0.05 | 590 | 51 | 1.58 | 0 | 3920000 | Informational | Reviews, Site links, FAQ, Video, People also ask, Knowledge panel |
| what is proctoring mean | 0.05 | 50 | 47 | 0 | 0 | 186000 | Informational | Video, People also ask, Knowledge panel |
| whats a proctor | 0.05 | 170 | 48 | 0 | 0 | 1780000 | Informational | Reviews, FAQ, Video, People also ask, Knowledge panel |
| if proctoring is enabled you will always need a webcam | 0.05 | 210 | 52 | 0 | 0.01 | 10700 | Informational | Featured snippet, Reviews, Video, People also ask |
| proctor u | 0.05 | 27100 | 65 | 1.73 | 0.01 | 298000 | Navigational | Reviews, Site links, FAQ, Video, People also ask, Image pack, Video carousel |
| proctor.u | 0.05 | 50 | 43 | 1.73 | 0.01 | 2.9E+07 | Navigational | Reviews, Site links, FAQ, Video, People also ask, Video carousel |
| proctoral | 0.1 | 90 | 21 | 0 | 0.01 | 88 | Informational | Site links, Video, People also ask |
| proctor u | 0.05 | 30 | 62 | 1.73 | 0.01 | 404000 | Navigational | Reviews, Site links, FAQ, Video, People also ask, Image pack, Video carousel |
| proctored assignments are indicated by | 0.05 | 170 | 31 | 0 | 0.01 | 576000 | Informational | Featured snippet, Video, People also ask, Image pack |
| proctored u | 0.1 | 170 | 39 | 1.73 | 0.01 | 808000 | Navigational | Reviews, Site links, People also ask, Video carousel |
| proctoro | 0.1 | 170 | 64 | 1.73 | 0.01 | 88 | Navigational | Site links, People also ask |
| remotely proctored meaning | 0.05 | 170 | 41 | 2.65 | 0.01 | 28700 | Informational | Featured snippet, Reviews, FAQ, Video, People also ask |
| smarter proctoring login | 0.1 | 50 | 24 | 0 | 0.01 | 43900 | Informational | Video |
| u proctor | 0.05 | 210 | 39 | 1.73 | 0.01 | 1.7E+07 | Navigational | Reviews, Site links, People also ask, Video carousel |
| what is proctor u | 0.05 | 260 | 51 | 1.6 | 0.01 | 235000 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Video carousel |
| hat proctor u | 0.05 | 110 | 31 | 4.04 | 0.02 | 92 | Informational | Site links, Video, People also ask, Image pack, Video carousel |

44

| proctor test meaning | 0.05 | 110 | 49 | 0 | 0.02 | 3400000 | Informational | Site links, FAQ, Video, People also ask, Knowledge panel |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| proctor u help | 0.05 | 70 | 46 | 1.17 | 0.02 | 156000 | Navigational | Site links, FAQ, Video, People also ask |
| proctor u log in | 0.05 | 210 | 63 | 0.91 | 0.02 | 129000 | Navigational | Site links, Video, People also ask |
| proctor u login | 0.05 | 1600 | 71 | 0.91 | 0.02 | 179000 | Navigational | Site links, Video, People also ask |
| proctor u support | 0.05 | 90 | 53 | 1.16 | 0.02 | 141000 | Navigational | Site links, FAQ, People also ask |
| proctor university | 0.05 | 210 | 36 | 2.17 | 0.02 | 2.6E+07 | Informational, Transactional | Reviews, Site links, Image, People also ask, Image pack, Video carousel |
| proctoring test meaning | 0.05 | 70 | 46 | 0 | 0.02 | 113000 | Informational | Featured snippet, Reviews, FAQ, Video, People also ask |
| what does a proctor do | 0.05 | 40 | 48 | 0 | 0.02 | 3.3E+07 | Informational | Featured snippet, FAQ, People also ask |
| are connect exams proctored | 0.05 | 30 | 41 | 0 | 0.03 | 224000 | Informational | Featured snippet, People also ask, Image pack, Video carousel |
| canvas proctoring | 0.05 | 70 | 32 | 0 | 0.03 | 112000 | Informational | Video, People also ask, Video carousel |
| define proctored exam | 0.05 | 70 | 49 | 2.34 | 0.03 | 209000 | Informational | Featured snippet, Site links, FAQ, People also ask, Video carousel |
| proctor | 0.05 | 33100 | 78 | 0.48 | 0.03 | 9.3E+07 | Informational, Transactional | Site links, People also ask, Image pack, Video carousel, Knowledge panel |
| proctor u lsat | 0.05 | 110 | 31 | 4.45 | 0.03 | 83 | Informational | Reviews, Site links, Video, People also ask, Image pack |
| proctor u sign in | 0.05 | 140 | 54 | 0.78 | 0.03 | 123000 | Navigational | Reviews, Site links, Video, People also ask |
| proctor. | 0.05 | 260 | 68 | 0.48 | 0.03 | 8.5E+07 | Informational, Transactional | Site links, People also ask, Image pack, Video carousel, Knowledge panel |
| proctore | 0.05 | 90 | 65 | 0.48 | 0.03 | 9.6E+07 | Informational, Transactional | Reviews, Site links, People also ask, Image pack, Video carousel, Knowledge panel |
| proctored | 0.1 | 9900 | 60 | 0.48 | 0.03 | 1.9E+07 | Informational | Site links, People also ask, Video carousel, Knowledge panel |
| proctores | 0.1 | 70 | 56 | 0.48 | 0.03 | 1.7E+07 | Informational | People also ask, Video carousel, Knowledge panel |
| proctoring | 0.2 | 5400 | 74 | 0.48 | 0.03 | 2.4E+07 | Informational | People also ask, Video carousel, Knowledge panel |

45

| proctors inc | 0.1 | 170 | 35 | 0 | 0.03 | 320000 | Navigational | Reviews, Site links, FAQ, People also ask, Knowledge panel |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| what does a proctored test mean | 0.05 | 70 | 55 | 2.77 | 0.03 | 304000 | Informational | Featured snippet, Reviews, FAQ, Video, People also ask |
| what does proctored exam mean | 0.05 | 320 | 54 | 1.5 | 0.03 | 405000 | Informational | Featured snippet, Reviews, FAQ, Video, People also ask |
| what is a test proctor | 0.05 | 140 | 57 | 1.42 | 0.03 | 2E+07 | Informational | Featured snippet, Reviews, Site links, People also ask, Video carousel |
| proctor exam meaning | 0.05 | 260 | 50 | 2.15 | 0.04 | 3E+07 | Informational | Featured snippet, Site links, People also ask, Video carousel |
| proctor free | 0.25 | 320 | 47 | 1.47 | 0.04 | 3.7E+07 | Informational, Navigational | Reviews, Site links, People also ask, Video carousel |
| proctor free login | 0.1 | 40 | 32 | 1.52 | 0.04 | 4060000 | Navigational, Transactional | Reviews, Site links, Video, People also ask |
| proctored exam meaning | 0.05 | 1300 | 56 | 2.15 | 0.04 | 2E+07 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Image pack, Video carousel |
| proctored exams meaning | 0.05 | 30 | 47 | 2.15 | 0.04 | 1680000 | Informational | Featured snippet, Reviews, People also ask, Video carousel |
| proctoring exam meaning | 0.05 | 70 | 48 | 2.15 | 0.04 | 115000 | Informational | Featured snippet, Reviews, FAQ, People also ask, Video carousel |
| proctoring exams meaning | 0.05 | 110 | 48 | 2.15 | 0.04 | 1320000 | Informational | Featured snippet, Reviews, FAQ, Video, People also ask |
| what are proctored exams | 0.05 | 260 | 57 | 1.26 | 0.04 | 3530000 | Informational | Featured snippet, Site links, FAQ, People also ask, Image pack, Video carousel |
| what is a proctor exam | 0.05 | 210 | 54 | 1.26 | 0.04 | 8910000 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Video carousel |
| what is a proctored exam | 0.05 | 1300 | 56 | 1.26 | 0.04 | 8820000 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Image pack, Video carousel |
| what is a proctored test | 0.05 | 90 | 52 | 1.4 | 0.04 | 6380000 | Informational | Featured snippet, Site links, FAQ, People also ask, Video carousel |
| what is an exam proctor | 0.05 | 140 | 50 | 1.26 | 0.04 | 5340000 | Informational | Reviews, FAQ, People also ask, Image pack, Video carousel, Knowledge panel |
| what is proctor exam | 0.05 | 30 | 51 | 1.26 | 0.04 | 5590000 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Video carousel |

46

| what is proctored exam | 0.05 | 390 | 56 | 1.26 | 0.04 | 7910000 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Image pack, Video carousel |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| how does a proctored exam work | 0.05 | 30 | 50 | 4.78 | 0.05 | 2280000 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Video carousel |
| monitor edu proctor | 0.05 | 170 | 30 | 2.06 | 0.05 | 4470000 | Navigational | Site links, Video, People also ask |
| proctor fee | 0.05 | 30 | 18 | 1.97 | 0.05 | 4690000 | Informational | Site links, People also ask, Image pack |
| proctor track | 0.05 | 480 | 50 | 1.85 | 0.05 | 26700 | Navigational | Reviews, Site links, FAQ, People also ask, Video carousel, Adwords top |
| proctored test meaning | 0.05 | 210 | 55 | 4.23 | 0.05 | 381000 | Informational | Featured snippet, Reviews, FAQ, Video, People also ask |
| what is proctoring an exam | 0.05 | 30 | 56 | 2.25 | 0.05 | 1040000 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Video carousel |
| yan proctored exams detect phones | 0.05 | 90 | 25 | 3.24 | 0.06 | 20300 | Informational | Featured snippet, Site links, FAQ, Video, People also ask, Video carousel |
| mobile proctor | 0.05 | 40 | 36 | 1.73 | 0.06 | 1.1E+07 | Informational | Reviews, People also ask, Image pack, Video carousel |
| proctor download | 0.2 | 90 | 55 | 1.03 | 0.06 | 1.8E+07 | Informational | Reviews, Site links, Video, People also ask |
| proctor login | 0.15 | 140 | 45 | 0.95 | 0.06 | 1.6E+07 | Informational | Site links |
| proctoring enabled | 0.05 | 110 | 51 | 2.55 | 0.06 | 133000 | Informational | Site links, FAQ, People also ask, Image pack, Video carousel |

### Keyword by competitor: ProctorU®

**Table 10: ProctorU® Keywords**

| Keyword | Related | Volume | Keyword Difficulty | CPC (USD) | Competitive Density | Number of Results | Intent | SERP Features |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| go proctoru login | 0.05 | 110 | 60 | 0 | 0.03 | 112000 | Navigational, Transactional | Reviews, Site links, Video, People also ask |
| go.proctoru.com a | 0.05 | 110 | 59 | 0 | 0 | 103000 | Informational, Transactional | Reviews, Site links, People also ask |
| go.proctoru/students/reservations | 0.05 | 40 | 42 | 0 | 0 | 87 | Informational, Transactional | Reviews, Video, Image pack |
| go.proctoru/testitout | 0.05 | 70 | 52 | 0 | 0.03 | 767 | Informational, Transactional | Reviews, Site links, People also ask, Image pack |

47

| gre proctoru | 0.05 | 40 | 30 | 0 | 0 | 20700 | Informational | Reviews, FAQ, People also ask, Image pack, Video carousel |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| http://go.proctoru.com/password_resets/new | 0.05 | 110 | 40 | 0 | 0 | 31 | Informational, Transactional | Site links, People also ask |
| https://go.proctoru.com/students/exams/select | 0.05 | 110 | 39 | 0 | 0 | 23200 | Informational, Transactional | Video, People also ask, Adwords top |
| https://www.proctoru.com/live-plus-resource-center | 0.05 | 110 | 58 | 0 | 0.02 | 24200 | Informational, Transactional | Reviews, Site links, People also ask |
| login proctoru | 0.05 | 40 | 63 | 0 | 0.03 | 93300 | Navigational, Transactional | Site links, Video, People also ask |
| &nbsp;&nbsp;&nbsp;&nbsp;o https://test-it-out.proctoru.com/ | 0.05 | 50 | 62 | 0 | 0 | 63000 | Informational | Reviews, Site links, Video, People also ask |
| proctoru access code free | 0.05 | 40 | 40 | 0 | 0.09 | 52800 | Informational | Reviews, Video |
| proctoru auto | 0.05 | 50 | 45 | 0 | 0.02 | 50100 | Informational | Reviews, FAQ, Video, People also ask, Image pack, Video carousel |
| proctoru automated | 0.05 | 140 | 51 | 0 | 0 | 45500 | Informational | Featured snippet, Reviews, Site links, People also ask, Image pack, Video carousel |
| proctoru gre | 0.05 | 40 | 32 | 0 | 0.02 | 19700 | Informational | Reviews, Video, People also ask, Image pack, Video carousel |
| proctoru live chat | 0.05 | 140 | 66 | 0 | 0.04 | 32500 | Informational, Transactional | Reviews, Site links, Video, People also ask |
| proctoru login account | 0.05 | 170 | 60 | 0 | 0.06 | 110000 | Navigational, Transactional | Site links, Video, People also ask |
| proctoru login lsat | 0.05 | 50 | 42 | 0 | 0 | 64 | Navigational | Reviews, Site links, Video, People also ask, Image pack |
| proctoru login test taker | 0.05 | 40 | 34 | 0 | 0.04 | 23100 | Navigational | Reviews, Site links, Video, Video carousel |
| proctoru login test-taker | 0.05 | 40 | 37 | 0 | 0.04 | 23400 | Navigational | Reviews, Site links, Video, People also ask, Video carousel |
| proctoru lsat login | 0.05 | 40 | 38 | 0 | 0 | 69 | Navigational | Reviews, Site links, Video, People also ask |

48

| proctoru system check | 0.05 | 170 | 66 | 0 | 0.01 | 60500 | Navigational, Transactional | Reviews, Site links, Video, People also ask |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| proctoru niuc | 0.05 | 140 | 63 | 0 | 0.01 | 62 | Informational | Site links, Video, People also ask, Image pack |
| proctoru und | 0.05 | 50 | 35 | 0 | 0 | 76 | Navigational, Transactional | Reviews |
| review + proctoru | 0.05 | 110 | 50 | 0 | 0.14 | 144000 | Commercial | Featured snippet, Reviews, FAQ, People also ask, Video carousel, Adwords top |
| tips //test-it-out.proctoru.com/ | 0.05 | 90 | 64 | 0 | 0 | 59800 | Informational | Reviews, Site links, Video, People also ask |
| niuc proctoru | 0.05 | 50 | 58 | 0 | 0 | 65 | Informational | Video, People also ask, Image pack |
| und proctoru | 0.05 | 90 | 49 | 0 | 0 | 72 | Navigational, Transactional | People also ask, Image pack |
| what does proctoru do | 0.05 | 40 | 46 | 0 | 0 | 142000 | Informational | Featured snippet, Reviews, Site links, Video carousel |
| proctoru account login | 0.05 | 40 | 58 | 0.54 | 0.05 | 98400 | Navigational, Transactional | Reviews, Site links, Video, People also ask |
| go proctoru com registrations | 0.05 | 50 | 46 | 0.77 | 0.24 | 1960 | Navigational, Transactional | Site links, Video, People also ask, Image pack, Adwords top |
| go.proctoru.com/ registrations | 0.05 | 50 | 53 | 0.77 | 0.24 | 1980 | Informational, Transactional | Site links, Video, People also ask, Image pack |
| proctoru sign in | 0.05 | 480 | 53 | 0.78 | 0.03 | 116000 | Navigational | Reviews, Site links, Video, People also ask |
| proctoru log in | 0.05 | 260 | 47 | 0.91 | 0.02 | 148000 | Navigational | Reviews, Site links, FAQ, Video, People also ask |
| proctoru login | 0.05 | 18100 | 67 | 0.91 | 0.02 | 136000 | Navigational | Site links, Video, People also ask |
| proctoru registration | 0.05 | 30 | 52 | 0.94 | 0.07 | 110000 | Informational | People also ask, Video carousel |
| proctoru com | 0.05 | 480 | 29 | 0.95 | 0.18 | 236000 | Navigational | Reviews, Site links, FAQ, Video, People also ask |
| proctoru.com | 0.05 | 480 | 34 | 0.95 | 0.18 | 318000 | Navigational | Reviews, Site links, FAQ, Video, People also ask |

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| https test it out proctoru com | 0.05 | 30 | 64 | 1.02 | 0.14 | 58500 | Navigational, Transactional | Reviews, Video, People also ask |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| https:// go.proctoru.com/ students/system- metrics/new | 0.05 | 110 | 40 | 1.02 | 0.13 | 3820 | Informational, Transactional | Reviews, Site links, People also ask |
| https://test-it- out.proctoru.com/ | 0.05 | 30 | 64 | 1.02 | 0.14 | 140000 | Informational, Transactional | Reviews, Video, People also ask |
| proctoru sign up | 0.05 | 30 | 58 | 1.05 | 0.15 | 213000 | Navigational | Reviews, Site links, People also ask, Video carousel, Adwords top |
| https:// go.proctoru.com/ students/reservations | 0.05 | 70 | 40 | 1.09 | 0.28 | 93 | Informational, Transactional | Reviews, Video, People also ask, Image pack, AdWords top |
| www proctoru com sign in | 0.05 | 30 | 38 | 1.1 | 0.37 | 152000 | Navigational | Reviews, Site links, Video, People also ask |
| proctoru inc | 0.05 | 170 | 54 | 1.11 | 0.06 | 60800 | Navigational | Reviews, Site links, FAQ, Video, People also ask, Knowledge panel |
| proctoru inc. | 0.05 | 110 | 42 | 1.11 | 0.06 | 56200 | Navigational | Reviews, Site links, FAQ, Video, People also ask, Knowledge panel |
| proctoru account | 0.05 | 90 | 42 | 1.12 | 0.08 | 139000 | Navigational | Site links, Video, People also ask |
| proctoru website | 0.05 | 30 | 57 | 1.12 | 0.11 | 131000 | Navigational | Reviews, Site links, Video, People also ask |
| www proctoru com | 0.05 | 110 | 30 | 1.12 | 0.26 | 181000 | Navigational | Site links, FAQ, Video, People also ask |
| www.proctoru.com | 0.05 | 140 | 28 | 1.12 | 0.26 | 282000 | Navigational | Site links, FAQ, Video, People also ask, Adwords top |
| proctoru con | 0.05 | 30 | 47 | 1.14 | 0.19 | 120000 | Navigational | Reviews, Site links, FAQ, People also ask, Video carousel |
| proctoru/ps | 0.05 | 50 | 58 | 1.14 | 0.09 | 0 | Informational, Transactional | Reviews, Site links, People also ask, Image pack |
| https go proctoru com session new | 0.05 | 30 | 56 | 1.15 | 0.15 | 18700 | Navigational, Transactional | Reviews, Site links, Video, People also ask |
| support proctoru | 0.05 | 30 | 47 | 1.15 | 0.02 | 158000 | Navigational | Site links, FAQ, People also ask |

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| go proctoru com | 0.05 | 210 | 62 | 1.16 | 0.24 | 101000 | Navigational, Transactional | Reviews, Site links, Video, People also ask |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| go.proctoru.com | 0.05 | 170 | 58 | 1.16 | 0.24 | 137000 | Informational, Transactional | Reviews, Site links, People also ask |
| proctoru support | 0.05 | 390 | 55 | 1.16 | 0.02 | 140000 | Navigational | Site links, FAQ, People also ask |
| https://go.proctoru.com | 0.05 | 30 | 66 | 1.17 | 0.3 | 130000 | Informational, Transactional | Reviews, Site links, Video, People also ask |
| https://go.proctoru.com | 0.05 | 90 | 69 | 1.17 | 0.3 | 104000 | Informational, Transactional | Reviews, Site links, Video, People also ask |
| https://go.proctoru.com/ | 0.05 | 30 | 66 | 1.17 | 0.3 | 126000 | Informational, Transactional | Reviews, Site links, Video, People also ask |
| proctoru help | 0.05 | 110 | 47 | 1.17 | 0.02 | 184000 | Navigational | Site links, FAQ, Video, People also ask, Adwords bottom |
| go.proctoru.com/push | 0.05 | 50 | 44 | 1.19 | 0.12 | 99 | Navigational | Reviews, Site links, Video, People also ask |
| proctoru practice test | 0.05 | 30 | 25 | 1.19 | 0.07 | 82100 | Informational, Transactional | People also ask, Image pack, Video carousel |
| www proctoru | 0.05 | 30 | 30 | 1.19 | 0.23 | 200000 | Navigational | Reviews, Site links, FAQ, Video, People also ask |
| www.proctoru | 0.05 | 50 | 32 | 1.19 | 0.23 | 169000 | Navigational | Reviews, Site links, FAQ, Video, People also ask, Adwords top |
| go proctoru com students reservations | 0.05 | 30 | 45 | 1.26 | 0.25 | 93 | Transactional | Reviews, Video, Image pack |
| go.proctoru/push | 0.05 | 70 | 39 | 1.28 | 0.07 | 98 | Navigational | Reviews, Site links, Image pack |
| proctoru com ps | 0.05 | 70 | 57 | 1.29 | 0.18 | 78 | Navigational, Transactional | Reviews, Site links, Video, People also ask |
| proctoru.com/ps | 0.05 | 40 | 64 | 1.29 | 0.18 | 0 | Informational, Transactional | Reviews, Site links, Video, People also ask, Adwords bottom |
| proctoru.com/ps/ | 0.05 | 70 | 53 | 1.29 | 0.18 | 75 | Informational, Transactional | Reviews, Site links, People also ask |
| call proctoru | 0.05 | 30 | 47 | 1.31 | 0.05 | 107000 | Navigational | Reviews, Site links, People also ask |

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| www.proctoru/ps | 0.05 | 170 | 65 | 1.32 | 0.16 | 69 | Informational, Transactional | Reviews, Site links, Video, People also ask, Image pack |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| www.proctoru.com/ps | 0.05 | 30 | 48 | 1.33 | 0.25 | 75 | Navigational, Transactional | Reviews, Site links, Video, People also ask |
| proctoru schedule exam | 0.05 | 90 | 54 | 1.38 | 0.08 | 160000 | Informational, Transactional | Site links, FAQ, People also ask, Image pack, Video carousel |
| test-it-out proctoru.com | 0.05 | 50 | 69 | 1.46 | 0.21 | 165000 | Informational, Transactional | Reviews, Site links, Video, People also ask |
| test/it/out.proctoru.com | 0.05 | 30 | 53 | 1.46 | 0.21 | 147000 | Transactional | Reviews, Site links, Video, People also ask |
| what is proctoru | 0.05 | 390 | 52 | 1.6 | 0.01 | 239000 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Image pack, Video carousel |
| proctoru test | 0.05 | 320 | 71 | 1.63 | 0.15 | 162000 | Navigational, Transactional | Reviews, Site links, Video, People also ask, Image pack, Video carousel |
| go proctoru | 0.05 | 390 | 60 | 1.72 | 0.11 | 106000 | Informational, Transactional | Reviews, Video, People also ask, Video carousel |
| go.proctoru | 0.05 | 590 | 36 | 1.72 | 0.11 | 109000 | Informational, Transactional | Reviews, Video, People also ask, Image pack |
| go proctoru.com login | 0.05 | 40 | 58 | 1.73 | 0.08 | 137000 | Navigational, Transactional | Reviews, Site links, People also ask |

**Keyword by competitor: Honorlock®**

**Table 11: Honorlock® Key words**

| Keyword | Related | Volume | Keyword Difficulty | CPC (USD) | Competitive Density | Number of Results | Intent | SERP Features |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| honorlock cheat | 0.05 | 260 | 46 | 0 | 0 | 34000 | Informational | FAQ, People also ask, Video carousel |

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| honorlock how does it work | 0.05 | 40 | 57 | 0 | 0.02 | 61800 | Informational | Featured snippet, Reviews, FAQ, People also ask, Image pack, Video carousel |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| honorlock institutions | 0.05 | 40 | 35 | 0 | 0 | 14500 | Navigational | Reviews, FAQ, Video, People also ask, Image pack, Twitter |
| honorlock lawsuit | 0.05 | 140 | 44 | 0 | 0 | 4220 | Informational | Site links, Video, People also ask, Image pack |
| honorlock practice quiz | 0.05 | 50 | 28 | 0 | 0.02 | 13200 | Informational | Site links, People also ask, Video carousel |
| honorlock room scan | 0.05 | 40 | 22 | 0 | 0 | 12500 | Informational | Site links, People also ask, Video carousel |
| honorlock stony brook | 0.05 | 90 | 24 | 0 | 0 | 59 | Informational | Site links, People also ask |
| honorlock system | 0.05 | 40 | 52 | 0 | 0.07 | 56100 | Informational | Reviews, Site links, FAQ, Image, People also ask, Image pack, Video carousel, Adwords top |
| honorlock utd | 0.05 | 50 | 41 | 0 | 0 | 0 | Informational | Site links, Video, People also ask, Image pack |
| honorlock virtual machine | 0.05 | 40 | 28 | 0 | 0.05 | 60 | Informational | Site links, People also ask, Image pack, Video carousel |
| honorlock.com | 0.05 | 50 | 47 | 0 | 0.05 | 138000 | Navigational | Reviews, Site links, FAQ, People also ask |
| how to cheat with honorlock | 0.05 | 320 | 41 | 0 | 0 | 82 | Informational | Site links, FAQ, Video, People also ask, Video carousel |
| what can honorlock see | 0.05 | 40 | 55 | 0 | 0 | 84300 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Video carousel |
| honorlock support | 0.05 | 320 | 42 | 1.21 | 0.04 | 46700 | Informational, Navigational | Site links, FAQ, People also ask, Image pack, Instant answer, Knowledge panel |
| download honorlock | 0.05 | 260 | 50 | 1.53 | 0.03 | 42700 | Transactional | Reviews, Site links, FAQ, Video, People also ask |

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| honorlock | 0.05 | 14800 | 49 | 2.21 | 0.05 | 118000 | Navigational | Reviews, Site links, FAQ, People also ask, Image pack, Video carousel, Twitter, Knowledge panel |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| honorlock download | 0.05 | 480 | 49 | 2.46 | 0.02 | 0 | Transactional | Reviews, Site links, FAQ, Video, People also ask |
| honorlock proctoring | 0.05 | 590 | 52 | 3.12 | 0.26 | 22500 | Informational | Reviews, Site links, Video, People also ask, Image pack, Video carousel, Adwords top |
| what is honorlock | 0.05 | 880 | 52 | 4.02 | 0.03 | 63300 | Informational, Navigational | Reviews, Site links, FAQ, People also ask, Video carousel, Twitter, Knowledge panel |
| honorlock pricing | 0.05 | 30 | 20 | 4.06 | 0.14 | 39400 | Transactional | Featured snippet, Reviews, Site links, FAQ, Image, People also ask, Image pack |
| honorlock proctoring system | 0.05 | 30 | 37 | 4.09 | 0.26 | 16100 | Navigational | Reviews, Site links, FAQ, People also ask, Video carousel, Adwords top |
| how does honorlock work | 0.05 | 590 | 54 | 4.3 | 0.03 | 56300 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Video carousel |
| honorlock exam | 0.05 | 30 | 37 | 6.09 | 0.1 | 43700 | Informational | Site links, People also ask, Video carousel |
| virtual machine honorlock | 0.05 | 30 | 33 | 6.1 | 0.1 | 86 | Informational | Reviews, Site links, People also ask, Image pack, Video carousel |
| honorlock test | 0.05 | 50 | 39 | 7.01 | 0.08 | 50800 | Informational | Site links, FAQ, Video, People also ask, Video carousel |
| honorlock testing | 0.05 | 90 | 40 | 7.01 | 0.08 | 64400 | Navigational | Reviews, Site links, FAQ, People also ask, Video carousel |
| what does honorlock do | 0.05 | 140 | 51 | 7.51 | 0.01 | 49300 | Informational | Featured snippet, Reviews, Site links, FAQ, People also ask, Video carousel |

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| honorlock asu | 0.05 | 30 | 31 | 9.31 | 0.06 | 46 | Informational | Reviews, Site links, People also ask, Image pack, Adwords bottom |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| honorlock demo | 0.05 | 30 | 34 | 9.89 | 0.11 | 80 | Informational, Transactional | Reviews, Video, People also ask, Image pack |
| test honorlock | 0.05 | 30 | 38 | 10.48 | 0.07 | 69900 | Informational | Site links, People also ask, Image pack, Video carousel |
| honorlock review | 0.05 | 50 | 29 | 11.66 | 0.04 | 53900 | Commercial | Reviews, Site links, FAQ, People also ask, Video carousel |
| honorlock reviews | 0.05 | 210 | 26 | 11.66 | 0.04 | 94 | Commercial | Reviews, Site links, FAQ, People also ask, Video carousel |

**Keyword Gap: Competitor Comparison Description (Honorlock®, Proctor360®, and Proctortrack® (See Chart 2))**

**Chart 2: Keyword Gap by Competitors**

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## Keyword Gap - No. of Organic Keywords by Competitor

![img-0.jpeg](img-0.jpeg)

### *Market Summary Trends in Competition*

Honorlock® is being used for reference as the company is a recent and strong competitor. The company’s headquarters are also in a similar location as Zero Cheating, with fervent ties to the community. See below several images that provide data on the competition and industry (*See Pictures 1-5*).

**Picture 1: Market Summary (Honorlock): Competitor Honorlock® Domain and Traffic**

![img-1.jpeg](img-1.jpeg)

**Picture 2: Top Keywords for Honorlock® Competitor**

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![img-2.jpeg](img-2.jpeg)

**Picture 3: Market Domain (Honorlock® vs. Dynamics for Competition)**

![img-3.jpeg](img-3.jpeg)

**Picture 4: Market Traffic: Competitor Honorlock®**

57

![img-4.jpeg](img-4.jpeg)

**Picture 5: Market Geographical Distribution (Industry Competitors)**

![img-5.jpeg](img-5.jpeg)

Industry competitor info featured in this plan have included companies such as Honorlock®, Proctorio®, Proctor360®, Proctortrack®, ProctorU®, Blackboard®, and others. Based on the data found through the market analysis, trends and search summaries, the most up to date market trends are as follows (*See Chart 3 and Pictures 6-10*):

### Market Trends by Competitors

**Table 12: Market Trends by Category for Each Competitor**

| Target | Visits | Unique Visitors | Pages / Visit | Avg. Visit Duration | Bounce Rate |
| --- | --- | --- | --- | --- | --- |
| honorlock.com | 1.1M ↑13.75% | 383K ↓12.29% | 1.9 ↓12.97% | 07:40 ↓7.63% | 52.66% ↓5.83% |
| proctoru.com | 2M ↑23.38% | 472K ↓19.77% | 9 ↑60.95% | 51:27 ↑138.93% | 21% ↑8.42% |
| proctortrack.com | 51K ↑13% | 40K ↑3.84% | 1.3 ↓36.57% | 00:29 ↓90.46% | 80.75% ↓48.93% |
| proctorio.com | 73K ↓35.86% | 57K ↓38.08% | 2.2 ↑23.07% | 02:44 ↑86.36% | 59.42% ↑2.93% |

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| blackboard.com | 115M ↑52.75% | 15M ↓1.79% | 4 ↓10.43% | 12:16 ↓10.13% | 43.8% ↑0.75% |
| --- | --- | --- | --- | --- | --- |

**Picture 6: Visits by Competitors**

![img-6.jpeg](img-6.jpeg)

**Picture 7: Unique Visitors by Competitor**

![img-7.jpeg](img-7.jpeg)

**Picture 8: Number of Pages per Visit by Competitor**

![img-8.jpeg](img-8.jpeg)

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**Picture 9: Average Visit Duration Per Page**

![img-0.jpeg](img-0.jpeg)

**Picture 10: Average Bounce Rate per Competitor**

![img-1.jpeg](img-1.jpeg)

**Picture 11: Competitor Traffic Sources**

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![img-2.jpeg](img-2.jpeg)

Picture 13: Traffic Sources by Country (Visits)

| Country | honorlock.com | proctoru.com | proctortrack.com | proctorio.com | blackboard.com |
| --- | --- | --- | --- | --- | --- |
| United States | 1.1M 96.51% | 835K 41.2% | 40K 79.35% | 60K 82.52% | 52M 45.44% |
| Canada | 10K 0.94% | 65K 3.19% | 6.6K 13.03% | 3.3K 4.55% | n/a |
| Germany | 7.2K 0.65% | n/a | n/a | n/a | n/a |
| India | 6.8K 0.61% | n/a | 690 1.36% | n/a | n/a |
| Saudi Arabia | 4.9K 0.44% | n/a | n/a | n/a | n/a |

In reviewing the data determined by the analytics software used above, it has found to be consistent with earlier studies whereby over half of the universities selected used proctoring software tools. Prior efforts of competitors used marketing strategies via key word logging, traffic, market condition, and market trends, as evidenced in a study by EduCause that

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specifically shares data about the prevalence of U.S. based proctoring services. As a new entrant, it is important to consider past performance of market competitors. To confirm the information was aligned with our current analysis, further analysis indicated that Proctorio® and Respondus® and Honorlock® yielded 3,290 key word results same or similar as both the Educause study and Zero Cheating's marketing analysis. All indicated that the words mentioned were highly active amongst educational institutions and over 100 institutions in the study adopted one of the three competitors above as well as Examity®. Nearly 63% of educational institutions in Canada and 66% in the United States have adopted proctoring software and are using them (*See Table 13*). Additionally, nearly 90% of U.S. universities mention these types of services either on their websites or through their marketing practices.

**Table 13. Mentions of Proctoring Software on US and Canadian College and University Websites**

|  | Any | Respondus | Proctorio | ProctorU | Examity | HonorLock |
| --- | --- | --- | --- | --- | --- | --- |
| United States and Canada | 62.9% | 52.4% | 19.6% | 25.7% | 18.0% | 7.7% |
| United States | 65.8% | 54.9% | 21.2% | 27.8% | 18.4% | 8.4% |
| Canada | 39.2% | 31.9% | 7.3% | 9.1% | 14.2% | 1.7% |

In the picture below, representation of proctoring software on college or university websites or Canadian provinces are also shown (*See Picture 14*).

**Picture 14: Proctoring Software adoption in the U.S. and Canada**

![img-3.jpeg](img-3.jpeg)

62

Overall, the data in pictures 1-14, and the accompanying tables and figures are a good indicator of how the digital and social space is embracing and reacting to proctoring software companies and distribution. It also provides robust information on prospective market expansions and how the closest competitors are performing and spending their marketing dollars through the usage of the keyword data, search engine optimization, and traffic of the competitors. Zero Cheating intends to follow a same or similar pattern for online marketing and domain optimization in order to gain customers.

## 2.5 Customer Target Market Segmentation

The education industry is vast with millions of students world-wide. In higher education alone. By 2030, there is said to be over 380 million students worldwide. Student enrollment numbers increase to 472 million by 2035 and are expected to increase to 594 million by 2040. The annual growth rate for the educational industry sector is approximately 4.2% per year.

E-learning has also exponentially increased at both higher institutions and corporations. Similarly, it is aggressively being adopted in K-12 institutions. The flexibility of online learning has provided an advantage for multi-dimensional learners that seek to engage and be engaged. Online proctoring has become a prominent solution for all end users. Zero Cheating’s Executive Summary specifically provides support for the domestic higher education, executive and international higher education markets. However, considering the flexibility in online learning in K-12 markets and the need for proctoring of exams, Zero Cheating could potentially serve the K-12 demographic as well.

As technological functionality improves and institutions continue their commitments for virtual proctoring services, Zero Cheating’s offerings are an increasingly valued support system. The online exam and assessment proctoring software market in 2021 yielded $624m. The global online exam proctoring software is expected to grow significantly with a CAGR of 16.4% by 2028 reaching $1.5bn. In addition to the United States, Germany, India, Japan and South Korea are expected to be global leaders.

The customer demographic for the market is expansive given the opportunities to apply the software to the three aforementioned markets. In addition, the K-12 market is not considered in the current Executive Summary, which additionally provides a wider range of unchartered investment opportunity. The current customer demographics using the software include but are not limited to:

### **Primary customer:**

- College/Universities in the US: 5,300

### **Primary user (United States):**

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Gender:

- Male College/University students: Approx., 40.5% of U.S. college/university population
- Female College/University students: Approx., 59.5% of U.S. college/university population

Age:

- The average age for students enrolled full-time in undergraduate programs is 21.8 years old.
- The average age of part-time students is 27.2 years.
- 49% of all undergraduate and postgraduate students were 20-21 years old.
- 2.8% of college students are under 18.
- 0.2% of college students are aged 55 and older.

Secondary Customer:

Number of firms:

- There are 804,000 firms in the United States with approximately 10+ employees.
- There are over 226,000 firms doing $2.5m or more in gross revenue.
- Both types of firms, with high employee or ration or gross revenue are likely to utilize upskilling, training, tooling, or certificate education requirements whereby Zero Cheating has a place.

Using a database of 30 million profiles, Zippia® estimates demographics and statistics for Business Executives in the United States, verified against BLS, Census, and current job openings data for accuracy. The data science supports:

Secondary User:

There are over 11,293 Business Executives currently employed in the United States.

- 38.8% of all Business Executives are women, while 55.2% are men.
- The average age of an employed Business Executive is 44 years old.
- The average age of an MBA or Graduate student is 30 years old. Said working age students are in the earlier parts of their career, still finding education a prominent component of their career profile.

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- The average of age for a graduate student is 38 with certificate seekers, executives needing upskilling or training ranging from 40-50.

# *Number of Educational Services and Support Institutions:*

Second to corporate firms, there are specifically education centers with the following NAICS codes that can serve prospective customers in the secondary market.

Total educational service firms: 427,476 (including colleges, universities, primary, secondary education, and professional schools). Additional educational service firms: 175,666

| 6114 | Business Schools and Computer and Management Training | 5,257 |
| --- | --- | --- |
| 611410 | Business and Secretarial Schools | 853 |
| 611420 | Computer Training | 3,990 |
| 611430 | Professional and Management Development Training | 414 |
| 6115 | Technical and Trade Schools | 14,232 |
| 611511 | Cosmetology and Barber Schools | 3,104 |
| 611512 | Flight Training | 1,246 |
| 611513 | Apprenticeship Training | 442 |
| 611519 | Other Technical and Trade Schools | 9,440 |
| 6116 | Other Schools and Instruction | 145,848 |
| 611610 | Fine Arts Schools | 28,956 |
| 611620 | Sports and Recreation Instruction | 48,027 |
| 611630 | Language Schools | 2,345 |
| 611691 | Exam Preparation and Tutoring | 9,410 |
| 611692 | Automobile Driving Schools | 5,651 |
| 611699 | All Other Miscellaneous Schools and Instruction | 51,459 |
| 6117 | Educational Support Services | 10,329 |
| 611710 | Educational Support Services | 10,329 |

# **Tertiary Customer:**

Global Education Institutions (Universities and Colleges only):

- College or university student population (India, Indonesia and China only): 45 million

# ***India:***

- Undergraduate enrollment is between 19-23 years old, with 48.6% female and 52.4% male.

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- Industry Market size: $50+bn
- General enrollment in higher education: $38m
- By 2030, India expects to increase enrollment to 140m students in higher ed institutions.

# *Indonesia:*

According to the World Bank and Education in Indonesia, the Indonesian school system alone is immense and diverse. With over 50 million students and 2.6 million teachers in more than 250,000 schools, it is the 3rd largest education system in the Asia region and the fourth largest in the world (behind only China, India and the United States).

According to UIS data, the number of Indonesian degree-seeking students enrolled overseas has grown by nearly 62 percent since 1998, reaching a high of 47,317 in 2016. Indonesia's growth is the third-largest sender of international students among ASEAN member states in 2017, behind only Vietnam (82,160) and Malaysia (64,187). Considering more than 40 percent of Indonesia's population is under the age of 25, with approximately 27 percent under the age of 15; the median age is approximately 30.5 years. The large university-age population means that Indonesia has a substantial pool of potential international students. According to the World Bank Data, nearly 55% of the university population is female compared to 45% male. The average age of a graduate student in Indonesia is 26. The growth in Indonesia is expected by increase as a top provider for economic opportunity by 2050 with tremendous growth in education for outward and inward mobility.

# *China:*

Higher education plays a key role in Chinese culture and economic advancement. The primary customer for the Chinese market includes 3,013 colleges and universities with over 40m students enrolled in mainland China.

Per statistics in 2020, 3.14m students were enrolled in masters and doctoral degree programs at colleges and universities in China. 3.77m students earned a short-cycle degree or certificate program.

- The female education participation level has now reached 56.6% compared to only 44.4% of men.
- 85% of women support and gain value in higher education and continued lifelong learning.
- Graduate students age for masters' level students is 24.5 and doctoral is 26.5

In sum, there is a vast population of institutions globally in which Zero Cheating can expand for secondary and tertiary market share.

# 2.6 SWOT Analysis

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The online proctoring market is expected to grow by a CAGR of 18.1% during the forecasted periods of 2021-2028. Institutional and company interest are the main drivers for an upward trajectory. Zero cheating maintains internal strength as a company whose executive team has business development experience and existing partnerships with prospective customers.

Strengths, opportunities, threats and weaknesses for Zero Cheating include:

*Strengths:*

- Low-cost solution with easy implementation
- Access to customers in industry through existing relationships
- Allows the control over conducting exams fairly
- Patent-pending solution to ongoing problem
- Single point of contact for proctors
- Global usage through virtual test facilities
- Full upper-body exposure through wide angle camera lens
- Vendor-client based model is primarily good for large-scale operations
- Mock testing, secure browser interface, complementary support and training
- Video, audio streaming and recording during exams
- Customized reporting with activity trail and accuracy score
- Cloud-based scalable solution with live camera

*Weaknesses:*

- Software development may be delayed
- Camera prototyping may be delayed
- Testing schedule coordination may be time consuming
- Troubleshooting of technology features (i.e., retina scanning)
- Positioning the company brand to differentiate its uniqueness compared to existing competition
- Surveillance may not be 100% accurate, risk of reputation loss
- Operational challenges due to poor design and or user experience (accuracy of reports, camera scanning issues, software glitches)
- Need to build long-term trust amongst prospective clients

*Opportunities:*

- Current solutions not entirely accurate in solving proctoring problems
- Ability to provide patented technology and software solution
- Remote test-taking market continues to grow

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- Prevention of ongoing lawsuits for current proctoring practices
- Poorly designed examination systems allow for new entrants to market
- Ability to penetrate growing secondary and tertiary markets
- Access to potential primary, secondary and tertiary clients in target capacities than existing competitors.

Threats:

- Prospective clients are in long term contracts
- Sales pipeline from intention to transaction may be lengthy
- Existing competitors with capital to improve software platforms and technology
- Patent novelty still in pending approval status by USPTO
- Corporate or University stakeholders have prolonged decision-making process, which can slow growth for the company
- 'Boys club' mentality - need extensive contacts in industry to penetrate

## 2.7 Positioning Statement

As colleges struggle to preserve academic standards by deterring cheating while balancing the privacy rights of students, Zero Cheating is positioned to solve the issues many predecessors like Honorlock® and other competitors have been facing.

For the Competition:

Zero Cheating is for universities, colleges, corporations, and testing centers that need online exam proctoring services. Zero Cheating is a proctoring software service company that detects, prevents, and reports inaccuracies in privacy and authentication when it comes to online test-taking. Unlike its competitors, Zero Cheating uses biometric retina and facial scanning, full-camera view spanning and motion sensors to detect involuntary movements.

For the Customer:

For universities, colleges, corporations, and testing centers, Zero Cheating is the premiere proctoring software solution that will solve the inaccuracies in false reporting and authentication, while maintaining university integrity and keeping student privacy concerns at bay.

## 2.8 Milestones

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Zero Cheating's milestones remain consistent throughout the first five years with an emphasis on where the company is, where it is headed, and where it is expected to be (See Chart 3 - Milestones for Zero cheating Y1-Y5).

Chart 3: General Milestones for Zero Cheating Y1-Y5

![img-4.jpeg](img-4.jpeg)

Marketing milestones for Zero Cheating also reflect the needs of the company based on prior analyses of its' offerings, competitors, and market position as a new entrant. Distribution and marketing milestones are a significant part of the company's goals (See Charts 4 and 5 - Distribution and Marketing Milestones for Zero Cheating).

Chart 4: Distribution Milestones for Zero Cheating

![img-5.jpeg](img-5.jpeg)

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| Stage 1: Startup & Investor | Stage 2: Introduction to | Stage 3: Phase 1 of Growth Strategy | Stage 4: Extension and Expansion |
| --- | --- | --- | --- |
| Pre-orders General exposure Soft raise | Website created Patents confirmed Camera and software developed Beta launch | Sales team developed Begin partnerships with accelerators | Additional investor relationships Expansion in primary market |

**Chart 5: Marketing Milestones for Zero Cheating**

![img-0.jpeg](img-0.jpeg)

## 2.9 Management Summary and Gaps

Additional personnel shall be required for Zero Cheating to ensure threats are minimized, and strengths are demonstrable to prospective clients, all of whom have large stakeholders.

Personnel salaries for staff Y1-Y5 are listed below:

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Y1:

- Salary for CEO: $100k
- Salary for Chief Business Development/Strategy Officer: $350k
- Admin: $45k
- Software Development: $75k

Y2:

- Salary for CEO: $100k
- Salary for Chief Business Development/Strategy Officer: $350k
- Development Team: (2 @ $75k): $150k
- Sales personnel (3 @ 40k): $120k
- Admin: $45k
- Customer Service and Support (2 @ $30k): $60k
- Chief Compliance Officer Salary $100k

Y3:

- Salary for CEO: $150k
- Salary for Chief Business Development/Strategy Officer: $350k
- Vice President: Global Strategy: $150k
- Development Team: (5 @ $75k): $375k
- Sales personnel (8 @ $40k): $320k
- Admin: $45k
- Customer Service and Support (3 @ $30k): $90k
- Chief Compliance Officer Salary $100k

Y4-5:

- Salary for CEO: $150k
- Salary for Chief Business Development/Strategy Officer: $350k
- Vice President: Global Strategy: $150k
- Development Team: (5 @ $75k): $375k
- Chief Technology Officer: $200k
- Sales personnel (12 @ $40k): $480k
- Admin: $45k
- Customer Service and Support (8 @ $30k): $240k
- Chief Compliance Officer Salary $100k

### 3.0 Financial Model and Plan

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Zero Cheating is currently self-funded by its' founder and is seeking preliminary capital to support the organization as it develops it's servicing software. Funds raised shall be utilized to launch business development activities for Zero Cheating upon completion of its' primary testing round. Preliminary testing includes distribution of 100 cameras and software tools for to multiple universities to beta test the system. Several universities have already been selected and have agreed to participating in the beta test.

The founder of Zero Cheating has already contributed an excess of $50,000 into the business by covering expenses for patent acquisition, prototype development, business plan writing and camera inventory. Zero Cheating is also seeking Letters of Intent from prospective investors contingent on proof of concept through testing.

Zero Cheating has the ability to leverage its' executive team's contacts at each one of the colleges and universities in the United States. The United States college and university totals are approximately 6,063, with 5,300 as the primary target. As illustrated, the target market is based on differing contributors in size, geography, and practice. There are also thousands of authorized GED and other certification test centers throughout the United States as well. While the numbers of centers for test-taking are just one of the prospects, it is clear that with 19.6m college students in the United States there is certainly a market for the service (See Appendix - Exhibit A - List of Current University Leads/Clients of CBDO).

# **Assumptions:**

# *Primary Market:*

United States (Undergraduate and Graduate students):

- College or university student population: 19,600,000 (United States only)
- College/Universities in the US: 5,300
- Number of students per school: 3,698
- Zero Cheating market share by Y5 (20%): 1,060 Colleges
- Cost of service: $10.95 per student cost annually
- Zero Cheating conservative earnings: $31,193,000

All services are automated, which allows for multiple proctoring of exams for the annual student cost of $10.95 per student.

# *Secondary Market:*

United States (Executive Education - Non-Degree Seeking):

- Total Number of firms yielding $1m+ in revenue with 20+ employees: 719,716

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- 5% of firms require proctoring software for certifications or licensures: 35,985
- Cost of service: $19.95 per corporate partner*
- Zero Cheating market share (25%): 8,996 corporate partners.
- Zero Cheating conservative earnings: $14,322,348

*Zero Cheating's conservative earnings can increase by adjusting the price per camera, as many firms have tax deductions in place for company investments in such technology.

With executives also engaging in online learning that require for-credit programs in the U.S., many are taking exams in a proctored-type setting. The credit hour is the standardized building block by post-secondary institutions and corporations used to assess a students' learning and progress. It is also a cornerstone for funding in professional upskilling and training. The United States provides a $5,250 federal tax deduction to those corporations for reimbursement to professional executive students for their continued learning. U.S corporations spend nearly $180bn annually on formal training and development of which, $28bn is through tuition reimbursement.

Of these U.S. corporations, 92% offer educational benefits with 63% towards tuition assistance, 51% toward training seminars, 50% toward continuing education credits, 44% for licensure exams, and 35% toward general professional development programs. Moreover, as of October 2021, there are 719,716 U.S. firms with 20+ employees. In juxtaposition, there are over 1.15mn firms in the U.S. that have annual sales exceeding $1m.

The executive education market has been on an extended increase with expectations of growth to reach 11.2% CAGR by 2031. The industry's current revenue exceeds $37bn currently with over 80% engaging with universities for certificates, graduate and other professional education programs. In the same, these projections include revenue growth exceeding $109.6bn by 2031.

Should Zero Cheating retain 1% of those 1 million corporations with gross revenues exceeding $1m as clients with the same fee charged as to educational institutions for proctoring their employees on certifications, for-credit program exams, licensures and the like, revenues could exceed $100m alone. Assuming 50% of the 719,716 U.S. firms (359,858 total) with 20+ employees engage in tuition assistance, continuing education, licensure exams or other (with 10 students at each corporation minimum), revenues for Zero Cheating at minimum would be $35m+ for corporations identified in the United States alone. Satellite offices over-seas and or organizations whose headquarters lay in other countries may be considered subsequently.

#### ***Tertiary Market:***

##### ***Global Education (Colleges and Universities)***

- College or university student population (India, Indonesia and China only): 45 million

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- Zero Cheating market share (1%): 450,000
- Number of students per school: 3,698
- Cost of service: $10.95 per student
- Zero Cheating conservative earnings: $4,477,500

Global educational technology is vital to the success of online learning. In 2019, investments grew to $187.9bn in industry, with the hopes that students learn at their own pace and skill level. There is also interest in eliminating barriers to learning, such as; reducing costs, and increasing both efficiency and integrity of the virtual learning experience.

College and university systems are vast in the global marketplace. Indian higher education yields over 34.3 million students alone and is ranked as having the most universities globally with 5,288. Nearly 31 million of the student population engage in graduate and post-graduate studies where proctoring services are often needed.

Indonesia and China are also leading higher education with 2,595 universities and 2,565 universities respectively. As of 2020, Indonesia has 3 million state university students and many more in private institutions. Nearly 8 million students represented the graduate and undergraduate programs at public colleges and universities in China. Currently, approximately 22% of students in higher education attend private institutions in China.

With only considering these three populated countries it is foreseeable that Zero Cheating can procure 1% of the student population in same. With only accessing 450,000 students, Zero Cheating stands to yield $4.48m in potential earnings.

For bandwidth of potential global earnings See Chart 6: Number of Universities World-Wide (2021):

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# **Chart 6: Number of Universities World-Wide (2021)**

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![img-1.jpeg](img-1.jpeg)

# Five-Year Forecast Strategy

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**Table 14: Five-Year Forecast Strategy**

| Y1: R&D for hardware, Software development, and marketing/sales outreach |
| --- |
| Y2: Initial U.S. penetration with 18/months |
| Y3: U.S. + Initiate Corporate testing center sales |
| Y4: US + Corporate Growth |
| Y5: U.S. + Corporate + Initiate International University sales |

# Financial Assumptions - Corporations, U.S. and Global Education

**Table 15: Executive Financial Summary**

| Financial Projections | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | --- | --- | --- | --- | --- |
| Revenue | 0 | $4,292,400 | $11,807,502 | $26,725,779 | $44,642,106 |
| Cost of Revenue | 0 | 1,960,000 | 5,169,800 | 11,612,100 | 19,349,400 |
| Gross Margin | 0 | $2,332,400 | $6,637,702 | $15,113,679 | $25,292,706 |
| Operating Expenses | $687,500 | $2,206,360 | $3,033,247 | $4,701,407 | $5,783,961 |
| EBITDA | ($687,500) | $126,040 | $3,604,455 | $10,412,272 | $19,508,745 |

The financial projections are conservatively based upon capturing only 20% of the total market share. As a benchmark, the market leader Respondus® has 65% followed by Proctorio® at 23%. Not only does Zero Cheating offer a significantly better patent-pending solution, Universities do not sign exclusive agreements. In fact, many universities use multiple proctoring services at a time. Thus, it is possible for Zero Cheating to achieve up to 60% of the market share resulting in a 4x increase in EBITDA and value.

Additionally, the above projections conservatively assume Zero Cheating covers the entire cost of the camera. Universities can either pay for the camera or pass on the cost in admin/technology fees to students. In the event the camera cost is passed on to the customer, the YR 5 EBITDA rises to nearly 30 million or a 2x multiple of the current forecast. Thus, the above forecast is a worst-case scenario of both market share and cost structure.

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**Table 16: Balance Sheet**

| Balance Sheet | 2023 | 2024 | 2025 | 2026 | 2027 |
| --- | --- | --- | --- | --- | --- |
| Assets |  |  |  |  |  |
| Cash | $37,500 | $326,873 | $3,417,455 | $11,717,284 | $26,921,135 |
| Accounts Receivable | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | 37,500 | 326,873 | 3,417,455 | 11,717,284 | 26,921,135 |
| Future Tax Credit | 172,500 | 141,615 | 0 | 0 | 0 |
| Gross PPE | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 |
| Accumulated Depreciation | 2,500 | 5,000 | 7,500 | 10,000 | 12,500 |
| Fixed and Other Assets | 195,000 | 161,615 | 17,500 | 15,000 | 12,500 |
| Total Assets | $232,500 | $488,488 | $3,434,955 | $11,732,284 | $26,933,635 |
| Liabilities |  |  |  |  |  |
| Accounts payable | 0 | 163,333 | 408,333 | 898,333 | 1,470,000 |
| Total Liabilities | $0 | $163,333 | $408,333 | $898,333 | $1,470,000 |
| Equity |  |  |  |  |  |
| Paid in Capital | 750,000 | 750,000 | 750,000 | 750,000 | 750,000 |
| Retained Earnings | -517,500 | -424,845 | 2,276,622 | 10,083,951 | 24,713,635 |
| Total Equity | $232,500 | $325,155 | $3,026,622 | $10,833,951 | $25,463,635 |
| Total Liabilites and Equity | $232,500 | $488,488 | $3,434,955 | $11,732,284 | $26,933,635 |

*Note: the company purchases cameras as ordered and thus does not carry inventory.*

**Table 17: Income Statement**

| Income Statement | 2023 | 2024 | 2025 | 2026 | 2027 |
| --- | --- | --- | --- | --- | --- |
| Revenue | $0 | $4,292,400 | $11,807,500 | $26,725,770 | $44,642,100 |

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| Cost of Sales | 0 | 1,960,000 | 5,169,800 | 11,612,100 | 19,349,400 |
| --- | --- | --- | --- | --- | --- |
| Gross Margin | $0 | $2,332,400 | $6,637,702 | $15,113,67 | $25,292,70 |
| Operating Expenses |  |  |  |  |  |
| Sales & Marketing | 25,000 | 1,268,860 | 1,903,559 | 3,321,485 | 4,391,527 |
| Research & Development | 0 | 93,750 | 98,438 | 348,672 | 361,184 |
| General & Administrative | 662,500 | 843,750 | 1,031,250 | 1,031,250 | 1,031,250 |
| EBITDA | ($687,500) | $126,040 | $3,604,455 | $10,412,27 | $19,508,74 |
| Depreciation and Amortization | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 |
| EBIT | ($690,000) | $123,540 | $3,601,955 | $10,409,77 | $19,506,24 |
| Taxes | ($172,500) | 30,885 | 900,489 | 2,602,443 | 4,876,561 |
| Net Income | ($517,500) | $92,655 | $2,701,467 | $7,807,329 | $14,629,68 |

**Table 18: Cash Flow Statement**

| Cash Flow Statement | 2023 | 2024 | 2025 | 2026 | 2027 |
| --- | --- | --- | --- | --- | --- |
| Beginning Cash | $0 | $37,500 | $326,873 | $3,417,455 | $11,717,284 |
| Operations | (687,500) | 289,373 | 3,090,582 | 8,299,829 | 15,203,851 |
| Investments | (25,000) | 0 | 0 | 0 | 0 |
| Financing | 750,000 | 0 | 0 | 0 | 0 |
| Ending Cash | $37,500 | $326,873 | $3,417,455 | $11,717,284 | $26,921,135 |

**Table 19: Personnel Head Count**

| Head Count | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | --- | --- | --- | --- | --- |
| Sales and Marketing | 0 | 7 | 13 | 22 | 22 |
| Research and Development | 0 | 1 | 1 | 2 | 2 |
| General and Administrative | 2 | 4 | 5 | 5 | 5 |
| Total | 2 | 12 | 19 | 29 | 29 |

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The company seeks to raise $750,000 to cover startup costs and expenses through its break-even cash flow of Month 13.

**Table 20: Use of Funds**

| Use of Funds |  |
| --- | --- |
| Legal Contracts | $15,000 |
| Website Development | 10000 |
| Sales and Marketing Programs | 25000 |
| General and Administrative | 662500 |
| Cash Cushion | 37500 |
| Total | $750,000 |

### 3.1 Company Exit Strategy

The following opportunities are available to Zero Cheating should it meet the goals and expectations of the business plan. A sample invoice of prospective sales has been provided in the Appendix, marked as *Exhibit B - Invoice for Proctoring Services by Honorlock® and Florida State University* in the amount of approximately $354,000. Said invoice demonstrates the sales capacity with one primary target.

#### *Merger and or Acquisition:*

Zero Cheating has several potential opportunities for an acquisition, or merger. Some of the online education and edtech companies positioned to acquire Zero Cheating, include:

- ▪ McGraw-Hill®
- ▪ Blackboard®
- ▪ Brightspace®
- ▪ Sakai®
- ▪ Canvas®
- ▪ Pearson®
- ▪ Chegg®
- ▪ Duolingo®
- ▪ Coursera®
- ▪ Udemy®
- ▪ Coursera®

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- Emeritus®
- Zschool®
- 2U®
- Guild®
- Moodle®

The current business can also continue its life span with an extended reach of growth in terms of product, geography and market penetration through a merger and or acquisition. A potential merger with a learning management platform may even increase the company's capabilities and value. A merger can allow for an extension of market power, reducing competition, and increase bargaining power with suppliers for the cost of goods sold and or variable pricing on margins for larger sales opportunities. Through a merger, shared access to resources can increase speed of processing and speed of client acquisition. Improving tax efficiency and costs may also occur through the merger of a combined balance sheet.

Disadvantages of a merger may include a significant upfront investment for either party, higher failure rate, organizational culture clash between both companies, excessive valuations, exaggerated of strategic fit, underestimation of organizational dilemmas and costs to procure, change in ownership structure and or leadership.

Alternatively, the advantages of Zero Cheating's patent-pending software and camera features in conjunction with the business model could raise options for a buy out from an existing learning management platform or proctoring service company. The forecasted valuation presented could provide for a lucrative merger or buy-out.

Taking the aforementioned into account as well as the global direction of the organization the following types of mergers and acquisition solutions may be available to Zero Cheating.

- Horizontal acquisition
- Market extension acquisition
- Vertical acquisition
- Conglomerate acquisition
- Congeneric acquisition
- Reverse takeover (SPAC)
- Acquihire

*Initial-Public Offering:*

Given the breadth of potential expansion, bandwidth of the product, and available market share and growth, Zero Cheating has the opportunity to hold the company privately or make it public on the stock exchange. An initial public offering would allow additional shareholders to invest in the company, allow for continued scalability and potentially prepare its founder for sale of the corporation. An IPO is also a good way for the founder or initial investors to recoup initial

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funds well spent. Disadvantages may include a lock-up period on the sale of stocks.

# *Private or Management Buy-out:*

Should the company remain private the founder may also sell the company to one of its' initial interested investors, management or otherwise. The initial investments in the company may allow for potential dividends, payback or even perpetuity for those invested upon sale. If the founder sells the firm to someone already running the company, the longevity may be enticing to existing investors to stay on board, re-invest more funds or wait longer for a return based on new company objectives.

The initial seed money for the company to launch is minimal compared to the existing valuation on the company and the intellectual property assigned to the corporation, which stands as valuable on its' own. The company is showing strong markings for a potential investment and future buyout with merely acquiring a market share not much greater than existing counter players.

It is the contention of Zero Cheating's executive summary to generate interest in investment opportunities for the company and its product or service. It is the suggestion by experts in field that Zero Cheating has the potential opportunity to penetrate the market exceedingly well and position itself for a comfortable merger, acquisition, or sale.

**Table 21: Multiple Earnings Exit Estimation Valuation**

| Exit Estimation |  |
| --- | --- |
| Year 5 EBITDA | $19,508,745 |
| EBITDA Multiple (education sector) | 10 |
| Exit Value | $195,087,452 |

The above table assumes the most conservative and worst-case scenario in terms of only 20% market share and Zero Cheating covering 100% of the camera cost. A most-likely scenario of 30% market share and passing 50% of the camera costs on to clients yields an EBITDA of $60M corresponding to an exit value of $600M. The best-case scenario would be 60% market share and passing on 100% of the camera costs results in an EBITDA $120M and a corresponding exit of $1.2 Billion.

### 3.2 Culmination of Business Plan Report:

Academic dishonesty clearly remains a huge concern, and online learning programs have traditionally carried additional risks when compared to in-person testing. Remote and

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unmonitored students could easily look up information or pass their computer off to a friend for the duration of the test. Over the past two years, the software for remote learning has continually grown more accurate and more sophisticated to respond to these threats. Major remote proctoring trends include initiatives that have made services more secure and more efficient. The online exam industry has been using lockdown browsers and other methods to control the test-taking environment. Competitors have assisted in the prevention of using external online sources but have avoided the necessity of ensuring privacy and protection of the user resulting in litigation and false reporting.

While online proctoring has become more convenient, the methods by which the accuracy of the student performance is measured has failed as a lack of consideration for involuntary movements, identity authentication, and the inability to see the test taker in full view has been ignored. Current camera systems and the proctoring servicing companies have fallen short in providing an inclusive solution that detects and prevents these repetitive issues. As problems still remain, Zero Cheating is fully vested in combatting these challenges with its' patented product and software as a new market entrant.

Zero Cheating has been fortunate to have their predecessor's path paved and is approaching the industry from a well-researched and knowledgeable history. Zero Cheating is now at the forefront of providing a solution to an ongoing problem through a pragmatic and proactive approach already aware of the scrutiny in industry. With the following AI proctoring features, Zero Cheating is prepared to move full scale ahead and acquire the largest market share in industry.

- Facial, and fingerprint recognition to verify identity throughout the exam
- Voice recognition to detect sounds that indicate cheating
- Pattern recognition detects statistical anomalies or deviations from previous performances
- Object recognition to identify unauthorized people or objects in the environment
- Eye movement detection determines if someone is directing their attention elsewhere
- Side-view and 360-degree view full body camera panning

Finally, as of the most recent data in October 2022 the Global Online Proctoring Services for Higher Education market size will reach USD 1,187.57 million in 2029, growing at an additional CAGR of 16.4% from the current 18.1% by 2027 over the analysis period making it poignant time for Zero Cheating to fulfill its' business plan objectives and earnings expectations.

# APPENDIX

# APPENDIX TABLES, CHARTS, PICTURES and FIGURES

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# **Table Summary:**

- Table 1: Current Ownership/Partners and Share
- Table 2: Online Live Proctoring Systems vs. Automated Proctoring Systems
- Table 3: Evaluation Matrix of Proctoring Features
- Table 4: General Marketing Plan Assumptions
- Table 5: General Expenses for Marketing Assumptions - Y1
- Table 6: Business Development Expenses
- Table 7: Social Advertising Expenses
- Table 8: SEO and Content Marketing Expenses
- Table 9: Proctoring Software Key Words
- Table 10: ProctorU® Keywords
- Table 11: Honorlock® Key words
- Table 12: Market Trends by Category for Each Competitor
- Table 13: Mentions of Proctoring Software on US & Canadian College Websites
- Table 14. Five-Year Forecast Strategy
- Table 15: Executive Financial Summary
- Table 16: Balance Sheet
- Table 17: Income Statement
- Table 18: Cash Flow Statement
- Table 19: Personnel Head Count
- Table 20: Use of Funds
- Table 21: Multiple Exit Estimation Valuation

# **Chart Summary:**

- Chart 1: Marketing Budget Allocation by Percentage
- Chart 2: Keyword Gap by Competitors
- Chart 3: General Milestones for Zero Cheating Y1-Y5
- Chart 4: Distribution Milestones for Zero Cheating
- Chart 5: Marketing Milestones for Zero Cheating
- Chart 6: Number of Universities World-Wide (2021)

# **Picture Summary:**

- Picture 1: Market Summary (Honorlock®): Competitor Honorlock® Domain and Traffic
- Picture 2: Top Keywords for Honorlock®
- Picture 3: Market Domain (Honorlock® vs. Dynamics for Competition
- Picture 4: Market Traffic: Competitor Honorlock®
- Picture 5: Market Geographical Distribution (Multiple Industry Competitors)
- Picture 6: Visits by Competitors
- Picture 7: Unique Visitors by Competitor
- Picture 8: Number of Pages per Visit by Competitor

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- Picture 9: Average Visit Duration Per Page
- Picture 10: Average Bounce Rate per Competitor
- Picture 11: Competitor Traffic Sources
- Picture 12: Traffic Journey by Competitor
- Picture 13: Traffic Sources by Country (Visits)
- Picture 14: Proctoring Software adoption in the U.S. and Canada

**Figures Summary:**

- Figure 1: Three Types of Proctoring Systems
- Figure 2: Proctor Software - Past, Present and Future

Exhibit Summary:

Exhibit A - List of Leads - Existing Clients of CBDO

Exhibit B - Invoice for Proctoring Services by Honorlock® for Florida State University

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# **APPENDIX - Exhibit A - List of Current University Leads/Clients of CBDO**

1. Missouri State University
2. Stetson University
3. University of Las Vegas
4. George Washington University
5. University of Richmond
6. University of Wisconsin, Parkside
7. University of California, Riverside
8. Ithaca College
9. California State University, Chico
10. Pace University - Lubin School of Business
11. University of Houston - C. T. Bauer College of Business
12. University of California, Irvine
13. Tombolo Institute at Bellevue College
14. University of South Florida - Muma College of Business
15. Seton Hall University - Stillman School of Business
16. The George Washington University - School of Business
17. University of Colorado Boulder Leeds School of Business
18. University of California, Santa Barbara
19. Minnesota State University, Mankato
20. California State University - East Bay
21. University of Nevada, Las Vegas
22. University of Vermont
23. Florida International University
24. Georgia Southern University
25. Georgia College and State University
26. Valparaiso University
27. Visible Music College
28. Mercy College
29. University of Colorado - Colorado Springs
30. Cal Poly Pomona
31. Saint Joseph’s College - Indiana
32. Texas A&M University
33. Ashland University
34. University of North Alabama
35. Shenandoah University
36. Ohio Christian University
37. University of Tennessee - Knoxville

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38. Queens University
39. Thomas Jefferson University
40. Linfield University
41. Syracuse University
42. Charter Oak State College
43. Lindenwood University
44. Rockford University
45. Andrews University

*Contracts pending signatures in Higher Ed for CBDO:

- Pepperdine University
- St. Joseph's University - Penn
- University of New Haven
- Fairfield University
- Dakota State University
- Cornerstone University
- Northwestern College
- University of Alabama at Birmingham
- Golden Gate University
- Oak Point University
- Kalamazoo Community College

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# **APPENDIX - EXHIBIT B - INVOICE OF PROCTORING SERVICES PAID BY  
FLORIDA STATE UNIVERSITY FOR HONORLOCK®**

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Honorlock Inc.
2500 N Military Trl, Ste 322
Boca Raton, FL 33431 US
+1 8442432500
accountsreceivable@honorlock.com

FS20024407

![img-0.jpeg](img-0.jpeg)

BILL TO
Florida State University
Net 40 Payment Terms
invoices@fsu.edu
PAYABLES & DISBURSEMENT
SERVICES
UCA-5607 UNIVERSITY
CENTER
TALLAHASSEE, FL 32306-2391
United States

INVOICE 13292

DATE 01/30/2021 TERMS Net 45

DUE DATE 03/16/2021

| DESCRIPTION | QTY | RATE | AMOUNT |
| --- | --- | --- | --- |
| Enterprise \| Auto \| Year 2: 03/16/2021 - 03/15/2022 \| $11.00 users x 32,251 users | 32,251 | 11.00 | 354,761.00 |

*

Please remit payment at your earliest convenience using our
free online Bank Transfer option (Review and Pay button), or
by check sent to 2500 N MILITARY TRL, STE 322, BOCA
RATON, FL 33431.

Direct: +1.844.243.2500 Ext. 1040
Mobile: +1.561.900.4510

TOTAL DUE $354,761.00

Thank you for your business!
HL EIN: 82-1939155

# APPENDIX SOURCES and CITATIONS

1. Straits Research - Elearning Market Growth

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**Time limit hit – remaining pages or documents were skipped.**

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Zero Cheating, Inc

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 11-22-2022

**Physical Address:** 3200 N Federal Hwy, Boca Raton, FL, 33431

**Issuer Website:** https://zerocheating.com/index.html

**Is there a Co-Issuer?:** Yes

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

**Compensation to Intermediary:** 6.5% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

**Financial Interest in Issuer:** No

**Type of Security Offered:** Other

**Other Description of Security:** Simple Agreement for Future Equity (SAFE)

**Number of Securities Offered:** 100000

**Price per Security:** $1.00

**Method for Determining Price:** Pro-rated portion of the total principal value of $100,000; interests will be sold in increments of $1; each investment is convertible to one share of stock as described under Item 13.

**Target Offering Amount:** $100,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** As determined by the issuer

**Maximum Offering Amount:** $1,235,000.00

**Deadline to Reach Target Amount:** 04-30-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 1

**Total Assets (Most Recent Fiscal Year):** $3,550.00

**Total Assets (Prior Fiscal Year):** $0.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $0.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $0.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $0.00

**Short-Term Debt (Prior Fiscal Year):** $0.00

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $-65,274.00

**Net Income (Prior Fiscal Year):** $0.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, B5, GU, PR, VI, 1V

### Signatures

**Issuer:** Zero Cheating, Inc

**Signature:** Neil Parsont

**Title:** CEO

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**Signature:** Neil Parsont

**Title:** CEO

**Date:** 12-19-2022