January 2020 Investor Presentation Disclaimers / Statements - - PowerPoint PPT Presentation

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January 2020 Investor Presentation Disclaimers / Statements - - PowerPoint PPT Presentation

A New Media Destination for the 21st Century. January 2020 Investor Presentation Disclaimers / Statements Disclaimer This document is based on information provided by Grom Social Enterprises, Inc. (OTC:GRMM) (the Company, our, or


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A New Media Destination for the 21st Century.

January 2020 Investor Presentation

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OTCQB: GRMM | 2

Disclaimers / Statements

Disclaimer This document is based on information provided by Grom Social Enterprises, Inc. (OTC:GRMM) (the “Company”, “our”, or “we”) and other sources that the Company believes are reliable. Nothing in this document is, or may be relied upon as, a promise or representation by the Company as to the past or the future information or results. This is not an offer or the solicitation of an offer to buy any securities of the Company, and readers should not construe the contents of this document as investment, legal or tax advice. The information contained in this document is made as of the date hereof, and does not reflect any events that may occur subsequent to the date hereof. The Company undertakes no duty or obligation to update or revise the information included in this presentation. Forward Looking Statements This presentation includes forward-looking statements that are made pursuant to the "safe harbor" provisions of the private securities litigation reform act of

  • 1995. Forward-looking statements reflect our current views with respect to future events and involve inherent risks and uncertainties which could cause actual

results to differ materially from our historical experience and present expectations or projections as a result of various factors, including those risks and uncertainties described in the risk factors and in management’s discussion and analysis of financial condition and results of operations sections of our annual report on form 10-k and subsequently filed quarterly reports on form 10-q, filed with the Securities and Exchange Commission. One can find many (but not all) of these statements by looking for terms such as "believe," "expect," “hope,” ”project,” "may," "will," "should," “would,” "could," "seek," "intend," "plan," "estimate," "anticipate" and similar terms. all statements other than statements of historical facts included in this presentation, including statements regarding

  • ur strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements.

We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which represent our estimates and assumptions only as of the date hereof. Except as required by law, we undertake no

  • bligation to update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information,

future developments or otherwise. We anticipate that subsequent events and developments will cause our views to change.

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Overview

  • Grom Social Enterprises (OTCQB: GRMM) is a media, technology and entertainment

company for kids.

  • Grom Social has reached over 17 million users since inception
  • Recently launched Grom Social mobile app expands user base
  • Profitable Top Draw Animation subsidiary creates 2D content for tier-1 studios
  • Significant content creation synergies with Grom’s social media platform
  • Blue chip clients include Disney, Warner Brothers and DreamWorks
  • Attractive & scalable business model with high gross margins (44.6%) 2
  • Proven management team with a strong track record in commercialization, technology

and media verticals

Grom Social Enterprises (OTCQB: GRMM) Share Price1 $0.09 Market Cap1 $15.0 M Revenues (TTM)2 $9.1 M Gross Margin (TTM)2 44.6% Enterprise Value $17.4 M FD Shares O/S1 193.6 M Float 162.4 M Headquarters Boca Raton, FL Employees1,3 515 Insider Ownership1 29.9%

Mission: Making the internet safe for kids through teaching and monitoring, giving parents the tools they need for piece of mind.

1) As of January 6, 2020 2) TTM = Trailing twelve months ended September 30, 2019 3) Employees are predominantly animation staff in Southeast Asia

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Media Coverage

social media story

Hottest th

– Entrepreneur Magazine

5

The next Mark Zuckerberg?

Is Zach Marks

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Stats 1,250

Hours of exclusive live streaming content

Disney DreamWorks Nickelodeon Warner Brothers Hasbro Toys Scholastic

Total users on all platforms since inception 6/2012.

Content Hours

Billions

Web attempts in schools we filter Security

6

Blue Chip Clients

7 Million

Parent Emails Collected Since Inception Parents Reached

10 Million +

Children that have used our platforms since inception Children/Students Reached

17 Million +

Families Reached Children, parents & students who have used our platforms

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Our Subsidiaries

Top Draw Animation, Inc

World-Class Animation Studio

Grom Social, Inc

Safe, Social Media App for Kids

Grom Educational Services, Inc

Web Filtering for Schools, Government and Private Business

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Top Draw Animation, Inc

World-Class Animation Studio

  • Award-winning 2D animation studio since 1999
  • Over 500 artists
  • State-of-the-art studio in Manila, Philippines
  • The company produces:
  • Over 250 half-hour episodes of 2D

animation each year

  • Over 2,000 half hours created
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Top Draw Animation, Inc

World-Class Animation Studio

Blue Chip Clients Produced:

  • Disney Television Animation
  • Warner Bros.
  • Nickelodeon
  • Cartoon Network
  • Scholastic
  • Hasbro Toys

The Hollow Netflix My Little Pony DHX Media The Tom & Jerry Show Slap Happy Cartoons Penn Zero Disney Television Animation George of the Jungle DHX Media Monster Beach Cartoon Network

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Top Draw Animation, Inc

World-Class Animation Studio

Top Draw Animation enters into 3D animation market with Tier-1 Animation and media giant.

Animation Revenue EBITDA 2017 $6,803,380 $1,574,103 2018 $7,801,157 $2,333,304

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Grom Social, Inc.

Safe, Social Media App for Kids

Are Kids Safe Online?

Many parents worry about their child’s online safety.

  • Who are they communicating with?
  • Is the media content age appropriate?
  • Is the media content consistent with the parent’s values?
  • How can I monitor their activity?

Yes, Thanks to Grom Social

Grom Social keeps kids safe, and parents worry free.

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Grom Social, Inc.

Safe, Social Media App for Kids

“As pioneers in the kids social media space, we are the first and

  • nly company to create a site for kids by kids’ that is monitored

24/7 and requires parent or guardian approval to participate.”

  • COPPA-Compliant
  • Ages 5-16
  • Parental Oversight
  • Monitored 24/7
  • Age Appropriate Content

OTCQB: GRMM | 11

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Grom Social, Inc.

Safe, Social Media App for Kids

Grom Social App is what Kids Want!

We have included all the popular features of social networks and provided them to kids in a safe platform for kids. Making us the

  • nly COPPA-Compliant application to offer these features.

Features:

  • Record and Share Videos
  • Real Commenting
  • Hashtags
  • Streaming Video Content
  • And More

Exclusive Features:

  • Direct messaging to kids
  • Video recording and posting
  • Exclusive Grom TV content
  • Message and chat with

cartoon characters

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Safe Platform + Teaching Online Safety = Competitive Advantage

Giving kids a safe platform keeps them safe while using it, but teaching safety keeps kids safe online indefinitely.

  • Digital Citizenship Course
  • Exclusive Safety Messaging
  • Safe Kid Friendly Advertising
  • Live 24/7 Monitoring
  • Limited Data Collection

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Grom Social, Inc.

Safe, Social Media App for Kids

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Grom Social, Inc.

Safe, Social Media App for Kids

MamaBear Parenting Application

Parents can protect all their children with our MamaBear parenting app while monitoring what their child does on Grom Social.

  • Social Media Monitoring
  • Location Tracking with Alerts
  • Family News
  • Speeding Alerts

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Grom Social KPI’s

Device Usage3 Gender Breakdown3

Active User Increase Since APP Launch

Geographical Breakdown3 Average Daily User Activity – New App

Total Users1 18,361,893 Total Monthly Active Users2 2,203,673 Average Child Online Duration3 56.4 Minutes Average Parent Online Duration3 4.3 Minutes Bounce Rate4 29.8%

United States 41.0% India 15.9% Brazil 12.5% Indonesia 11.0% Australia 9.4%

User Data

Male 43% Female 57% Mobile 78% Tablet 16% Desktop 6%

1) Total users (incl. parents) on all platforms since inception June 1, 2012. 2) Total monthly active users as of December 31, 2019. 3) Device usage, gender breakdown, most popular sections and geographical breakdown as are as of December 31, 2019. 4) Bounce Rate is as % of visitors to a website who navigate away from the site after viewing only one page. 5) Data obtained from Google Data Analytics, and Joomla Content Management System. May June July Aug Sept

100 90 80 70 60 50 40 30 20 10

Online duration increased 10x

6%

78% 16%

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  • World Ranked #2

Grom Social Ambassador, Caroline Marks Qualifies for the 2020 Olympics

2019 Media Appearances:

  • Today Show
  • Good Morning America
  • Sports Illustrated
  • Jimmy Kimmel
  • Time Magazine
  • USA Today
  • Vanity Fair
  • Forbes
  • People Magazine
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What is a User Worth?

Company Market Cap Active Users User Value $364 B 2.0 B $182 $227 B 1.4 B $158 $42 B 600 M $70 $24 B 302 M $81 $24 B 364 M $69 $4.0 B 160 M $28 $3.0 B 142 M $25

Source: Arkenea

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Grom Educational Services, Inc

Web Filtering for Schools, Government and Private Business

Protecting Kids In School

Grom Educational Services provides schools K-12 with online safety tools for CIPA compliance and to provide and teach

  • nline safety in schools.

Also provides funnel for new Grom Social users at zero cost.

  • Web Filtering
  • Online Activity Monitoring
  • Digital Citizenship License Course
  • Exclusive Educational Content

Children’s Internet Protection Act (CIPA) requires technology protection measures and internet safety policies for any government facility providing internet access.

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Our Team

| Executive Management Zach Marks – Founder / Chief Content Developer Darren Marks – Chairman / CEO / President

Over 30 years of public company experience at the CEO and Director level

Melvin Leiner – Vice Chairman / Executive Vice President / CFO

Over 40 years of high-profile senior executive level experience in the public and private sectors

Wayne Dearing – Founder and Managing Director of Top Draw Animation

Over 40 years of industry experience as manager and executive

| Independent Directors Robert Stevens

Founded Somerset Capital Ltd in 2001

Norman Rosenthal

Founded Tempest Systems Inc. in 1986

  • Dr. Thomas J. Rutherford

World-renowned oncologist and a national expert in cancer

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Key Highlights

$0.8 Million

FY18 WebFiltering Revenue

$7.8 Million

FY18 Animation Revenue

Pre-Revenue

New Grom App

2019 Grom Revenue Streams

  • Advertising
  • Monthly Subscription

Future Grom Revenue Streams

  • Merchandise
  • Corporate Sponsorship
  • Content Distribution
  • Polling/Research
  • Blue Chip Clients including Disney,

Warner Brothers and DreamWorks

  • Strong partnerships and initiatives

driving platform adoption and growth

  • TDA produces animation for some of the largest distribution

platforms in the world

  • Grom Social keeps kids safe, and parents worry free
  • Grom Educational provides K-12 schools with online safety tools
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Contact Us

Investor Relations Greg Falesnik or Luke Zimmerman MZ Group – MZ North America Main: (949) 259-4987 GRMM@mzgroup.us www.mzgroup.us

2060 NW Boca Raton Blvd., Ste. #6 Boca Raton, Florida 33431

gromsocial.com