www.uSell.com

2

Who we are2

Deep Consumer Internet, Technology, and Analytics Expertise

Nik Raman

CEO

Mike Bregman

Analytics

Christian Croft

Creative

Akshay Singhal

Product

Vijay Ganapathy

Technology

What we do

uSell has built a technology driven marketplace that enables consumers to sell high demand second hand electronic goods to a distributed base of professional buyers

Reverse CommerceMarketplace

Individual Sellers

Professional Buyers

for individual sellers• Get the highest price for the

least amount of effort

for professional buyers• Get easy access to diverse

inventory

Benefits of our approach:

3

Individual Sellers

eCommerce Market

Individual Buyers

Our vision for the future

Original eCommerce Model Evolved eCommerce Model

eCommerce + reCommerce

Individual Sellers

eCommerce Market

Individual Buyers

Professional Sellers

Re-CommerceMarketpalce

eCommerce & Wholesale Markets

Individual Buyers

Professional Buyers/Sellers

4

Shift towards power seller model

“Sell Now”/ instant gratificationOnline

garage sale/auction model

Individual Sellers

5

Marketplaces win when they can …• Leverage the power of a distributed base of merchants

while controlling the customer experience through technology

• Build liquidity for both buyers and seller

• Grow customer loyalty and repeat transactions over time

Successful marketplaces reach a tipping point where they …• Become self propagating

• Monopolize the market

• Bleed into new verticals

Why a reCommerce marketplace will win

$10 B valuation

$40 B valuation

$143.2 B valuation

Some marketplace success stories:

6

How uSell works operationally

CustomersPayment

4PaymentsProcessed

$318

uSell Customer Service

uSell Payment Giveaway

BuyerBenefits

• uSell manages more efficiently due to scale

SellerBenefits

Buyer Platform

2Buyers Compete for Products

• Buy inventory on demand

• Focus on select SKUs

• Price Competition

• Wide assortment/all conditions

Consumer Facing Site

1Consumers See Offers

• No need to build technology and optimize messaging

• Point and click search

• Instant offers• Easy fulfillment

ProductLogistics

3Products Shipped & Inspected

3rd Party Fulfillment

3rd Party Inspection

• uSell handles more effectively due to internal controls

• Standardized fulfillment and inspection

• Guaranteed fast processing

• Customer service is centralized and responsive

7

How we got here

Priceaggregatio

n

Integrateonsite

experience

DevelopBuyer’s Platform

Integrateshipping logistics

Integratepayment process

Integrateinspection services

EcoSquid/uSell

Merger

Evolution of uSell Business Modelfrom Lead-generation to Marketplace

Feb. 2012

March 2012

Jan. 2013

Jan. 2014

Oct. 2014

8 months

1 year

10 months

1 month

8

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

15,495

64,542

$44

$16

2013 20142012

Steep increases in volume and efficiency

420% growth in the volume of devices

65% reduction in cost to acquire a device

Since 2012 we have seen…

Took over onsite experience

Shifted from lead gen to marketplace model Paid devices

Device Acquisition cost

9

Consistent improvement in send-in rate

2013 2014

4/1 7/1 10/1 1/1 4/1 7/1 10/1 1/1 4/1 7/1 10/125

30

35

40

45

50

55

60

30%

55%

2012

10

Rapidly growing customer loyalty

9/1 10/1 11/1 12/1 1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/110%

15%

20%

25%

30%

35%

% Repeat Customers % Organic Traffic

Customer loyalty and positive feedback have grown exponentially over the last year

% Repeat Customers and % Organic Traffic

2013 2014

9.36 / 10

10/8/1

3

11/7/1

3

12/7/1

3

1/6/1

4

2/5/1

4

3/7/1

4

4/6/1

4

5/6/1

4

6/5/1

4

7/5/1

4

8/4/1

4

9/3/1

4

10/3/1

4

11/2/1

4

12/2/1

44.5

5

5.5

6

Gazelle MozRank uSell MozRank

Despite a 5 year head start, Gazelle’s lead in search has declined substantially

Keyword uSell Search Rank Competition

sell my cell phone 1 94%

sell iphone 2 91%

cash for phones 2 94%

sell ipad 3 76%

uSell.com ranks prominently in search for highly competitive keywords

Tactical SEO Experience: • On-site optimization • Off-site Linkbuilding • Content Strategy • Reputation Mgmt

Ever-increasing leadership in organic search11

NextWorth

Glyde

uSell

Gazelle

0 5000 10000 15000 20000

# External Links

12

Authoritative position in the media

“My favorite of the selling sites.” - Jean Chatzky | NBC Today Show

“Find the best prices for your used tech.” - Roy Furchgott | The NYT

12

Authoritative position in the media

Recurring Apple and mobile industry expert on CNBC’s Fast Money and WSJ’s The News Hub

“How to make the most money from old gadgets” - Lexy Savvides | CNET

Regularly featured in press roundups focused on consumer trade-in options

“uSell connects you with its network of buyers.” - Tim Stenovec | Huffington Post

Cultural trend stories prompted byuSell surveys & re-commerce data

13

Total Investment

Vs.

Efficient use of capital

Customer Acquisition Cost

$12MM $60MM

$16 $45

Our view of the trade-in market: supply-side

Collect devices at Point of Sale

Dictate supply chain

Capture disproportionate value

Individual Consumers Wireless Carriers Processing Partners

Awareness of trade-in options

Price sensitivity as awareness of device value grows

Margins

Control of Inventory

Continue to expand presence across supply chain

Develop alternate device acquisition channels and

determine how to maximize device monetization

Seek outhighest prices

Past

Present

Future

Our view of the trade-in market: demand-side

• Depend on retailers and distributors to direct inventory to consumer

• Must move inventory quickly so cannot capture prices

• Leverage niche markets• Do not have bargaining power or

alternative volume sources• Will work for small margins• Are not operationally demanding

• Increasingly interested in buying used handsets

• Expensive to acquire and service

Cost

of d

oing

bus

ines

s

Willingness to pay Higher Prices

Low

Hig

h

Low High

Med

ium

Medium

Bulk Wholesaler

Small Buyer

Individual Consumer

• Consumers would rather get paid a higher price in 30 days than be paid a lower price on the spot:

• When it comes to selling online, traditional auctions are too difficult and time consuming:

Provides Data Wipe

Free Shipping

Immediate Price Quote

User Friendly Website

Provides Risk Free Transactions (Returns)

Provides a quote in under 1 minute

76%

76%

75%

74%

72%

67%

% Answering Very and Extremely Important

Impact Radius Study 2014

uSell’s unique positioning with consumers

Want a higher price even if I need to wait 30 days for compensation

Would not mind a lower price as long as I receive compensation immediately

11% 47% 42%

• Across the board, uSell users are more satisfied with their selling experience than the average Reseller population60%

65%70%75%80%85%90%

% Answering Very & Extremely Satisfied

uSell Avg.

5% 10% 15% 20% 25% 30% 35% 40%0%

5%

10%

15%

20%

25%

30%

35%

Clear path to scaling consumer device acquisitionM

arke

t P

ote

nti

al:

Sha

re o

f In

tend

ers

Market Share: Share of uSell Consumers

45-54

Invest Harvest

MaintainDe-emphasize

34-44

25-34

18-24

55-64

• 34-44 Currently underpenetrated

• Media Test conducted in January 2015 points to significant scale-up opportunity

• 25-34 Continue to invest and optimize

• 18-24 Currently optimized, need to maintain market share

Volume#

Volume#

Volume#

Volume#

Volume#

uSell’s unique positioning with buyers

200 buyers over 4 years with varying: buying capacity, inventory turnover times, margin requirements, grading requirements, SKU specializations, disposition channels

Operational knowledge across spectrum of buyers

Over 300 product iterations informed by rigorous in-market testing

Systems evolved through validated leanings

50+% Avg. Share of Wallet, 67% Buyer NPS score

Increasing trust + dependence

• 7-10 inbound leads/week

• 600 Buyer Leads in pipeline

Organic Brand Pull

Path to scaling buyer demand and maximizing price

_x0002_Q1 _x0002_Q2 _x0002_Q3 _x0002_Q40

10000

20000

30000

40000

50000

60000

70000

80000

0.6

0.7

0.8

0.9

1

1.1

1.2

1.3

1.4

33,539

67,43072,308

64,542

Paid Devices vs. Price (2014)

Paid Devices

Y1 Q1 Y1 Q2 Y1 Q3 Y1 Q4 Y2 Q1 Y2 Q2 Y2 Q3 Y2 Q4 Y3 Q1 Y3 Q2 Y3 Q3 Y3 Q40

500

1,000

1,500

2,000

2,500

110195

293406

536686

857

1,054

1,278

1,534

1,827

2,159

Platform Device Capacity (000s)

Assumes

- Current pipeline of 600 buyers, and 7-10 weekly inbound leads- Additional 20 buyers/month, growing at 2% monthly- 400 devices monthly average/buyer, growing at 25% annually- 10% annual attrition rate on total buyer base

Activating current pipeline will lead to exponential capacity growth

uSell has a proven ability to scale volume without any degradation in price

Next evolution of the uSell business model

20

Leveraging operational synergies with Hyla

uSell can help Hyla diversify its device acquisition strategy while selling an increasing percentage of devices to small buyers and end consumers for higher margins

Efficiency gains across acquisition & disposition22

Device Acquisition

2015 2016 2017 2015 2016 20175% 8% 10% 0% 5%

10%

95% 92% 90% 90%

75%65%

0.1

0.2

0.25

Device Disposition

Current Buyers

Small buyers

Direct to Consumer

Carrier Programs

uSell Consumers

Increasing % of Devices are sold at higher margins

Increasing % of Devices are acquired via consumer channels