New Sapience: Unlocking Human Knowledge for Real AI

1. Technology Uplifting Humanity Real AI through Machine Knowledge, the step beyond Machine Learning

2. Machine Learning Limits • Digital assistants like Siri were introduced to be our helpers, giving us instant access to accurate information. • But conversations with Siri often feel one-sided. Think of all the times you made a simple request or statement, only to hear – • “I don’t know what that means.” • If Siri was human, she’d use her knowledge of the world to assist you. She would understand your question and give you a thoughtful response. • Machines can’t compete with human helpers because they don’t have that knowledge.

3. New Sapience: Fast Facts • New Sapience is a groundbreaking, scalable web-based software platform that adds knowledge derived from human minds into new and existing AI applications -- giving computers a way to comprehend our world so they can help us navigate it. • Our Machine Knowledge technology is the future of AI innovation, surpassing existing Machine Learning tech by adding explainable results, deterministic logic, and genuine comprehension of human language.

4. KEY HIGHLIGHTS • Patented core Machine Knowledge technology • First contract awarded Dec 2018 • Proven “sapiens” capable of learning pedagogically and applying context • Massive B2B and B2C market potential INDUSTRIES MARKET SIZE TARGET CUSTOMERS • Artificial Intelligence, Platforms, Natural Language Processing, Apps, Software, Information Technology, Data and Analytics • 2.5B smart phone users, 31B IoT devices, Business MK Automation $250B • Smartphone / device users, businesses with knowledge workers

5. The World As We Know It • How do humans gather knowledge?From birth we build a world model in order to understand and navigate the world around us. Step 1 Step 1 Step 2 Step 2 Step 3 Step 3 • Create a baseline model of the world from sensory information Compile a baseline model of the world created by humans • Extend the baseline model by reasoning and language comprehension Extend the baseline model by reasoning and language comprehension Communicate that model of the world through language Communicate that model of the world through language • At New Sapience, we’ve done the unthinkable: • Developed a way for computing machines to have a model of the world and extend it in a similar way.

6. The Hidden Structure • Rather than a mass of accumulated facts and rules, think of human knowledge as: • Abstract concepts • that fall into categories • which can be connected in specific ways to create more complex ideas. • If you could find the hidden structure of these connections, you could download a small, core set of ideas and the rules for their combination into a computer. • We believe we have revealed the hidden structures of knowledge; we understand the rules of combination, and we’re implementing them in our software.

7. Machine Knowledge (MK) • We’ve developed a practical, scalable way to add knowledge from human minds to new and existing AI applications -- using our revolutionary Machine Knowledge software technology: • MIKOS (Modeled Intelligence Knowledge Object System) • This technology lets machines contain and process compact models of the world-- giving them knowledge, comprehension, and the ability to learn pedagogically. • Machine Knowledge goes above and beyond Machine Learning technology, adding: • Explainable results • Deterministic logic • Genuine comprehension of human language

8. Fielding an Application • Applications of MK share key features: • Step 2: Loading the model At runtime the human built model is accessed by the program, providing the core building blocks for cognitive learning. Step 1 Building the model Human modellers examine their knowledge of the problem domain and, and, using special-built tools, create a specification that our software uses to create a corresponding concepts in its own internal world model. Step 3: Appling the knowledge. Our runtime engine interprets a proprietary programming language, providing logic to reason about information entering the system (which can be telemetry from instrumentation, parameters from a database, or natural human language), modifying and extending the initial internal model.

9. Our Sapiens • As each instance of runtime software interacts with its environment, it becomes a unique individual. • When equipped with our world model and natural language processing routines, they possess a human-like capacity to learn cognitively through: • Conversation with users Reading prepared curriculums Direct download of knowledge extensions • We call these language-enabled Machine Knowledge applications “sapiens.” • Our initial consumer product will be the companion sapiens -- superior digital assistants that remember information and actually understand our language instead of just reacting to keywords. As the sapiens converses, learning more and more about its “principle,” it will become progressively more useful.

10. Accomplishments • We’re entering a competitive field (AI) -- but our approach is new, unique, easily scalable, and outperforms the competition. • Product development: • We have significant demo capability. We’re able to show that sapiens are capable of: • Learning pedagogically • Applying context • Recognizing falsehoods and nonsense • Explaining conclusions • Reasoning under uncertainty • Disambiguating homonyms • No other ML/DL systems have achieved these breakthroughs.

11. Next Steps • Expected Milestones over the next 12 months: • Gaining traction in the marketplace through application development contracts Additional patent / continuations • Beta test for AIRMED Sapiens planned for 2019 Q4

12. Meet The Team • Bryant Cruse - Chairman and Founder • Pioneer in applying advanced automation software tech to difficult real-world problems • Founder/co-founder of two previous successful high-tech software automation companies which were acquired by public corporations • Responsible for New Sapience’s core technology concepts and design • Sean Reineke- CEO & President • Served as CEO, President and Chairman of the Board of various early-stage firms in the infotech and biotechnology fields • Held executive positions with Lockheed Martin and IBM • Leadership experience in the entire range of commercial, civilian government, and DoD, serving domestic and international markets • William F. Bandy, PhD. – Chief IP Officer, Board Member • Career with NSA, including being detailed to DARPA • Co-founded Matrics Technology Systems, Inc. -- bought by Symbol Technologies, Inc. in 2004 for $230M • First outside investor at New Sapience

13. Machine Knowledge Market • There is an immeasurably massive target market for our technology; we view every computer, smart phone, and intelligent device user as a potential customer -- as well as every company with knowledge workers. • With over ~2.5B current smartphone users, and ever-expanding Internet of Things (an estimated 31B connected devices by 2025), a vast market for knowledge workers, and we expect tremendous sales and growth.

14. Our target customers for sapiens: Companies with customer service representatives We’ll start by replacing frustrating phone menu systems and chatbot interfaces; eventually, advanced sapiens could augment or replace human representatives altogether. • People with many details to remember With upgrades, our tech will increasingly function like a human secretary, organizing customers’ lives. • Customers needing companionship or are memory impaired • The lonely, the elderly, people on medication, or anyone experiencing cognitive difficulties can call on our tech for help.

15. First Product: Patient Support Sapiens • Our first consumer product is a helpful digital companion designed to relieve the suffering of people with long term illnesses or the elderly. Far more than a “pill minder” app, the Patient Support Sapiens will converse with the user to learn about medical conditions, medication and symptoms. Medical Compliance Tracking Symptoms Appointment Management User: When is my next doctor’s appointment? Airmed: Dr. Simons, next Tuesday at 8:00 AM. Airmed: Remember he wants you to fast after midnight the night before. User: Right User: My headache is back. Airmed: I am so sorry, how bad is it? User: It hurts. Airmed: On the 1 to 10 scale? User: About a 6. Airmed: Worse than last night. You said it was around a 4 and half. Still on the right side? Airmed: Yes At 9:45 PM…Airmed: Have you taken your Lipitor yet?User: NoAirmed: When are you going to take it? User: I’m taking it now. Airmed: Thank you!

16. Follow-on Products: Companion Sapiens • Our second consumer product, a direct expansion from the PSS is a general digital companion that keeps track of details and keeps customers organized. It will be developed in 3 phases: Beta: Personal Memory Augmentation Mark I: Remind Me Capabilities Mark II: Communications Manager Can hold a conversation, remembers anything you tell it; recalls the information on demand Intelligent, proactive time management assistance Handles incoming calls and texts, takes incoming messages and gives out custom outgoing messages, screens email

17. Market for Sapiens • Our sapiens have B2B and B2C marketing potential -- they will be extremely useful in both personal and professional environments. B2C B2B • PSS Sapiens • Companion Sapiens • Personal Sapiens (special purpose) • Website sales support • Customer service • Talking appliances and devices • Enhancing existing digital • personal assistants

18. Go-to-Market Strategy • Develop custom Machine Knowledge applications for business customers in selected market verticals, establishing positive cash flow of non-dilutive revenue • Utilize revenue from contracts and investments to fund continued development, testing, marketing, and beta release of our Airmed Sapiens product • Scale into a range of potential markets • Expand technical staff, bring additional management and marketing staff onboard to introduce Airmed and the Companion Sapiens to a broader market • Attract attention of big tech companies with marketing efforts in anticipation of product release; sign licensing agreements

19. Other Product Plans • Group Sapiens: • Sapiens that work in a coordination role for small groups of people -- forming a relationship with each member while reporting to group leadership. • Public Sapiens: • Designed to interface with the general public, or a large number of individuals. Device Sapiens: Sapiens embedded in hardware, devices, IoT, autonomous and semiautonomous machines. • Knowledge Extensions (KEs) • Specific areas of human knowledge that have been put into Machine Knowledge form and can be easily downloaded and integrated into a person’s or a business’ sapiens.

20. Business Model Revenue Model: License core technology to third parties in multiple markets Build custom Machine Knowledge applications in select markets Sell our sapiens product lines as SaaS with a two-tiered subscription plan Tier 1 Fully-functional sapiens without core upgrades Tier 2 Adds upgrades

21. Sales • We plan to set up an online platform store to sell Sapiens, KE’s, and MK-enhanced apps. App store selling KE-enhanced applications Knowledge Store selling knowledge extensions Sapiens Store selling core sapiens for business and personal use • If third-party developers of KE and Apps sell them through their stores, we will collect license fees and royalties.

22. Competitive Overview • Leading tech companies (Amazon, Microsoft, Alphabet, Apple, Facebook, IBM) currently dominate the AI space, focusing on existing machine learning technology. • Machine Learning (ML) and Deep Learning (DL) techniques have massive backing and momentum, but are limited in their problem-solving capacity: No comprehension No intelligence No knowledge • We believe our technology will drastically alter the landscape. • As soon as one company starts using MK technology, the others will have to adapt.

23. Unique Advantages • Groundbreaking: Our technology will allow machines to possess knowledge and intelligence, letting them understand and help users in ways that previously seemed impossible. Integrated: Our solution sits on top of and integrates with the current ML/DL technology -- an easy, scalable, cost-effective way to create systems with incredible learning capabilities. Private: SIRI is like an Apple employee on your phone, helpful maybe, but designed to serve Apple, same with Alexa, an in-home agent that is ultimately a salesperson for Amazon. A sapiens works only for its user, as loyal as a Labrador retriever. Untethered: Companies like Google have an interest in limiting the power of digital assistants -- after all, if assistants can retrieve any information for users, then users will never have to visit Google and see the ads on their page. • We don’t have those restrictions; our tech will go further, faster.

24. Looking Ahead Customer acquisition: • We plan to pursue Pilot/Development/Production contracts with companies and strategic partners develop custom Machine Knowledge applications for customers in selected market verticals. Exit Strategy: • The most likely exit strategy scenario is a high acquisition offer from a lead tech company (Amazon, Microsoft, Alphabet, Apple, Facebook, IBM) – • What would Apple pay to give Siri a brain? Amazon, to give Alexa intelligence? • But we believe the best value for shareholders will be through an IPO.

25. Investment Opportunity • New Sapience is seeking a critical $1M investment to enhance our core technology, obtain 2+ new contracts, and beta release our Companion Sapiens. • FUNDING TYPE • VALUATION • Common Stock • $40M • FUNDING BREAKDOWN • PREVIOUS FUNDING 70% $1.0M • Product Development • Friends & Family Round (Equity) - Closed 1/16 $1.3M 20% • Angel Round (Equity) - Closed 10/16 • Business Development 10% $1.2M • Intellectual Property • Angel Round (Equity) – Closing soon

26. Why Invest? Commitment. We’re ready to face any challenge, dedicated to giving customers an advanced technological support system that caters to their specific needs and desires. Potential. With an experienced, visionary team, unique, patented technology, and infinite opportunities for marketing and expansion, we’re uniquely positioned for success and rapid growth. Making a Difference. Machine Knowledge is a massively transformative, world changing technology with potential to make the world a much better place. Be part of it. “If you invent a breakthrough in artificial intelligence, so machines can learn, that is worth 10 Microsofts” Bill Gates • For more information on this exciting investment opportunity, please contact: • Sean Reineke | sreineke@newsapience.com | 301.466.2328 | www.newsapience.ai