Revenue Model

OODLZ generates revenue through the following primary revenue streams:

Commission from DeFi Earn usage

OODLZ is looking to generate Commission on transactions that are undertaken by Users of its DeFi Earn product. The nature of Commission revenue is purely usage-based.

The OODLZ DeFi Earn model is broken down into detail under our OODLZ-Tokenomics document which demonstrates where and how we generate Commission on DeFi transactions.

We expect the OODLZ Earn product to generate 90% plus of all revenues.

DeFi blackboard estimate: $20Mil revenue p/a > conservative 20% opt-in for the OODLZ Earn product = $4Mil in DefI portfolios p/a > average return of 15% p/a, 10% for Users, 5% for OODLZ = $200K p/a.

*These are estimated calculations and can change due to market conditions. **Revenue numbers taken from an Australian leading Cashback providers financial data for '20.

Commission from Merchant Partner sales

OODLZ generates Commission on transactions that are undertaken by Users orders with OODLZ Merchant Partners. The nature of Commission revenue is purely performance-based (there is no Commission unless a Users transacts). OODLZ books the Commission as revenue. The Cashback to Users is a cost of doing business and reflected in Gross Profit Margin. The rate of Commission and Cashback paid to Users differs from category to category and from Merchant Partner to Merchant Partner. However, on average, OODLZ expects (*1) to earn a Commission of approx. 25% from Merchant Partners. Most, if not all of this Gross-Profit will be recycled back to the user via the OODLZ-Tokenomics structures. As such we expect Commission from Merchant Partners to represent less than 5% of OODLZ revenues in 2023.

Commission rates

OODLZ looks to increasing Commissions from Merchant Partner sales (as a percentage of Total Transaction Value) through negotiated Commissions based on volume. OODLZ believes that this will be a function of:

• growing its User base and the proportion of Active Users;

• continuing recognition of the value of OODLZ’ proposition for their sales by Merchant Partners; and

• the continuing relative outperformance of OODLZ relative to other marketing platforms.

It is the opinion of OODLZ that the return on both advertising and promotional spend delivered by OODLZ continues to remain compelling to these Merchant Partners, both in absolute terms and relative to other potential marketing channels, increasing OODLZ’ relevance.

Commission from Merchant Partner sales also tends to vary according to the category in which the Merchant Partner operates.

Commission from gift cards

This will be a new revenue stream for OODLZ in 2023 and we expect Commissions from gift cards to approximately 3% of revenue. OODLZ expects to launch this new product line via strategic third party partnerships with leading digital gift card platforms around the world. OODLZ will derive revenue by earning a Commission on each purchase of a gift card by its Users from said partners. OODLZ assumes no additional credit or fraud risk as the purchase and supply of gift cards will be managed by said Partners. We are looking to integrate the gift card order and fulfilment via API into OODLZ core digital assets, including initially the OODLZ’ website and over time the OODLZ app.

Key revenue drivers

Initially the majority of revenue will be derived from Commission from Merchant Partner sales until the OODLZ Earn product is launched and our primary business model rolled out. As demonstrated below, key revenue drivers include the ability of OODLZ to:

• attract new Users;

• increase the proportion of new Users and Active Users;

• increase the frequency with which Active Users transact via OODLZ;

• increase average order value of Active Users;

• increase cross-shopping among Active Users resulting in significantly greater category penetration than currently exists;

• grow the number of Merchant Partners, and (resultantly) increase the number of Cashback offers available to Users, which supports the above drivers; and

• negotiate favourable Commission terms with Merchant Partners.

In alignment with the tri-sided value proposition and network effects inherent in the business model, many of the above drivers are interdependent, influencing the performance of one another.

Key Cashback competitors are achieving Gross Profit Margins from the Commission from Merchant Partner sales of 25 - 35%. OODLZ core revenue model is derived from De-Fi whereby we are looking to give most if not all of the Commission from Merchant Partner sales back to Users.

This model should give OODLZ a 25 - 35% price advantage to Users than any other competitor. This also makes Merchant Partners offers more attractive to Merchants as any added cashback incentive only benefits their potential customers.

For the period between OODLZ approving the transaction and the Users subsequently withdrawing the value of their Cashback from their OODLZ account, OODLZ recognises a liability on OODLZ’ statement of financial position.

*1 benchmark estimates taken from leading competitor data.