identillect technologies corp. presentation
TRANSCRIPT
TSX-V:IDWWW.IDENTILLECT.COM
CORPORATE PRESENTATION
TSX-V:ID
WWW.IDENTILLECT.COM
January 2017
Award-Winning Email Encryption Technology
TSX-V:IDWWW.IDENTILLECT.COM
DISCLAIMERS
This presentation may include forward-looking statements that are subject to risks and uncertainties. All
statements within, other than statements of historical fact, are to be considered forward looking. Although the
Company believes the expectations expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual results or developments may
differ materially from those in forward-looking statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include market prices, exploitation and exploration
successes, continued availability of capital and financing, and general economic, market or business conditions.
There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely
on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking
statements except as required under the applicable laws.
TSX-V:IDWWW.IDENTILLECT.COM
ABOUTIdentillect Technologies Corp. (TSX-V:ID) is a Canadian based company that provides email security/encryption solutions to enterprises.
> Offers users total control over emails throughout their entire lifecycle while focusing on extremely simple integration
> Complies with all National and International data handling regulations
> Messages secured with the click of a button, ensuring their safety while in transit
> Recipients can open/respond securely w/out having to register/purchase/download anything
> Available as an Outlook Plugin, O365, Outlook.com, Hotmail.com, Gmail Plugin and mobile optimized web portal
TSX-V:IDWWW.IDENTILLECT.COM
INVESTOR HIGHLIGHTS
> Strong management and development teams with innovative securityexpertise
> Number of subscribers has grown 679% since commercialization in April2015
> Recurring revenue model; on target to hit 70% profit margin in 2017
> Cyber Security Market to grow from $106 billion in 2015 to $170 billion by 2020
> Company has a global presence that has created reseller partner relationsinternationally
TSX-V:IDWWW.IDENTILLECT.COM
THE PROBLEM
707+ million records containing personal information breached in US in 2015.1
1 Source: Gemalto.com
2 Source: FBI Ponemon Institute
Average cost of a data breach $4 million.2
Data breaches are increasing; email is inherently vulnerable to interception.
70 million compromised records
COST: $252M
76 millionhouseholds compromised
COST: >$1B
500 million accounts Compromised
COST: >$5B
Sensitive data from names to SIN’s can be at risk.
32 million users compromised
COST: est. $850M
RECENT DATA BREACHES
80 millionhouseholds compromised
COST: >$1B
TSX-V:IDWWW.IDENTILLECT.COM
THE SOLUTION - Delivery Trust™
Delivery Trust™Simple | Economical | Secure
> Always current on ever-changing data handling regulations and compliance
> No requirement for technical implementation or upkeep
> Easily scalable
> Patented technology
> The right solution for all sizes of organizations
> Our solution requires no complex infrastructure or training
> Our solution keeps you compliant with changing regulations
TSX-V:IDWWW.IDENTILLECT.COM
US Based> 47 states have enacted laws requiring notification of security breaches> Federal regulations to be enacted in 2017 HR. 2205
Canada> Personal Information Protection & Electronic Documents Act (PIPEDA)> British Columbia Personal Information Protection Act [SBC 2003] CHAPTER 63 Part 9-34
Europe> 95/46/EC EUROPEAN UNION (EU) DIRECTIVE Article 17 “implement appropriate technical
and organizational measures to protect personal data.” GDPR implementing the most stringent regulation seen taking effect 2018
Asia> Japan - Personal Information Protection Law (PIPL)> India - The Information Technology Act 2000 (“IT Act”)
NATIONAL & INTERNATIONAL DATA REGULATIONS
TSX-V:IDWWW.IDENTILLECT.COM
BEATING THE COMPETITION
Multi-Platform
TSX-V:IDWWW.IDENTILLECT.COM
Recurring Revenue Model for Business Users:Monthly subscribers: $12.00 - $15.00 per userMargin per user: $9.30 - $11.70 (78%)
REVENUE MODELSaaS Revenue Model: Recurring Payments
Reseller Revenue Model for Business Users:Monthly subscribers: $9.00 - $12.00 per userMargin per user: $6.10 - $8.15 (68%)
White Label Model for Business Users:Monthly subscribers: $8.00 - $11.00 per userMargin Per user: $6.10 - $8.35 (76%)
TSX-V:IDWWW.IDENTILLECT.COM
Q 2 Q 3 Q 4 Q 1 Q 2 Q 3
2 0 1 5 2 0 1 6
IDENTILLECT GROWTHExponential Growth
114%209%
357%463%
575%
> Strong reseller programs continue to increase paying subscriber base with very low churn (less than 5%)
> Since commercialization Q1 2015, paying subscribers have grown over 340% and continues to compound monthly
> Company anticipates breaking even at 30,000 subscribers (Q1 2017)
Compounded Subscriber Growth Since Commercialization Q1 2015 – Q3 2016 679%
TSX-V:IDWWW.IDENTILLECT.COM
Share Structure
Common Shares Outstanding - Basic 46,134,651
WarrantsAverage Price = $0.33 16,386,750
OptionsAverage Price = $0.19 4,272,000
Convertible Debenture@ $0.30 1,933,333
Common Shares - Fully Diluted 68,726,734
Identillect commenced trading on the TSX
Venture Exchange on May 25, 2016.
CORPORATE STRUCTURE
TSX-V:ID
Management & Insiders
Management and Insiders 17.8%
Subject to 36 Month Escrow 21.8%
Subject to 12 Month Escrow 4.4%
TSX-V:IDWWW.IDENTILLECT.COM
MANAGEMENT> 20 years’ experience managing business organizations - last 10 years developing innovative email security applications> Helped develop Identillect’s flagship email security solution, Delivery Trust™> Frequently speaks on the topic of electronic security, and authors articles on data security and regulatory compliance
Todd Sexton DIRECTOR + CEO
Jeff Durno CHAIRMAN
Einar Mykletun CTO
> Partner at Cassels Brock & Blackwell LLP (Vancouver)> Has served as director & officer of several technology companies, a merchant bank, and multiple TSX-V listed companies > Consults businesses on structuring complex commercial transactions and restructurings
> Security expert specializing in risk analysis, architecture, and cryptographic solutions> Lectures and is published internationally on cryptography > Ph.D. in computer science with a focus on applied cryptography from the UCI and ISC2 CISSP
> Managing Partner of Davidson & Company LLP – Chartered Professional Accountants> Actively involved in the public markets and analysis of transactions for over 30 years> Completed his CA and CMA in 1985 and earned his CPA (Nevada)
Grant Block DIRECTOR
> CFO and partner of Emprise Capital Corp., a private merchant bank> Over 25 years of experience in finance and administration in the public markets, both as a director and a senior officer> Holds a professional accounting designation from the Certified Management Accountants of Canada > Received his BBA from Saint Francis Xavier University
Rob Chisholm CFO
> President and director of Triple K Ventures Ltd., a private investment company for more than 35 years> Over 30 years of experience in strategic planning, sales and marketing in public and private equity markets
Mike Iverson DIRECTOR
TSX-V:IDWWW.IDENTILLECT.COM
23686 Birtcher DriveLake Forest, CA92630 USA
888-781-4080
www.identillect.com
TODD [email protected]
THANK YOU!
ARLEN HANSEN604-684-6730
Suite 100 – 736 Granville StreetVancouver, BC
V6Z 1G3 Canada
1-866-684-6730 (toll-free)
www.kincommunications.com