POSaBIT Systems Corp. · CSE:PBIT
POSaBIT Systems — Investor Presentation (May 2022)
31 slides from POSaBIT Systems's investor presentation, May 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION CSE:PBIT OTC:POSAF www.posabit.com May 2022 All numbers presented are in USD
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared solely for the benefit and use of certain qualifying investors. This presentation is confidential and proprietary, and may not be disclosed, reproduced, distributed or used for any other purpose without the express written consent of POSaBIT. Forward-Lo
Slide 3: Company Overview
COMPANY OVERVIEW [yPOsaBIT 3
Slide 4: At a Glance
POSABIT AT A GLANCE POSaBIT is the leading payments infrastructure provider for the cannabis industry. www.posabit.com INDUSTRY FOCUS LOCATIONS ACTIVE IN STATES CANNABIS 400+ 18 CSE OTC 2022 GUIDANCE PBIT POSAF Revenue: $37.0 - $40.0 million Gross Profit: $9.0 - $10.0 million Transactional Sales: $6
Slide 5: Overview, Milestones and Product Offerings
POSABIT OVERVIEW MILESTONES PRODUCT OFFERINGS CURRENT DEVELOPING Doubled Revenue each year since 2017 Payment Processing • POSaBIT MSO Mgr. Expanded into 18 states • PIN Debit “Multi State Operator” Completed integrations with a variety of • Point of Banking • Cash Advance industry partners (Weedmap
Slide 6: Leadership Team
POSABIT LEADERSHIP TEAM At POSaBIT, we have a superior management team with significant experience in the technology field RYAN HAMLIN MATT FOWLER JON BAUGHER ANDY SWEET CEO / Co-Founder CFO CRO / Co-Founder CTO Nearly three decades of Former Senior Vice President of Nearly three decades of software
Slide 7: The POSaBIT Timeline
THE POSABIT TIMELINE Vertical Integration w/ ERP Service, New CBD POS, Credit for CBD, MSO Manager, Builds First Launches First Fully-Compliant, Non-Cash Fully-Mobile Cash Advance Launches Full Payment Solution Point-of-Sale System Point-of-Sale System, Program for Dispensaries for Dispensaries & Re
Slide 8: Key Growth Drivers
KEY GROWTH DRIVERS NEW MERCHANTS DIGITAL PAYMENTS PENETRATION NEW OFFERINGS PARTNERSHIPS STATE LEGALIZATION 8
Slide 9: Market Expansion
POSABIT MARKET EXPANSION POSaBIT has dispensary partners in 18 states* across the country and plans to continue its expansion in 2022. New Markets - Currently Onboarding Merchants in: New Jersey, Illinois, Connecticut Target Markets for Expansion: Delaware, Florida, Hawaii, Louisiana, New Hampshire,
Slide 10: Partnerships
POSABIT PARTNERSHIPS weedmaps ™ Jane dutchie Leafly: Q HEADSET ZO ALPineia @)|EVERATE Gov) wikivear >Leafbuyer. springbig® SpotOn olla ENLIGHTEN Oo see beyond Ometrc LEAF isscl eeridot <DIVVY AN AKERNA COMPANY BiolrackTHC” POSaBIT
Slide 11: Investment Highlights
INVESTMENT HIGHLIGHTS [EyPOSsaBIT 1
Slide 12: Investment Highlights
INVESTMENT HIGHLIGHTS COMPLIANCE AS A DIFFERENTIATOR/MOAT CANNABIS MARKET IS GROWING RAPIDLY DIGITAL PAYMENTS PENETRATION IS LOW, BUT RISING POSABIT HAS A BEST IN CLASS PAYMENTS AND POINT OF SALE OFFERING UNIT ECONOMICS ARE SUSTAINABLE AND HAVE UPSIDE POST-LEGALIZATION 12
Slide 13: Compliance: Our Moat
POSABIT COMPLIANCE: OUR MOAT POSABIT IS A REGISTERED MONEY SERVICES BUSINESS WITH FINCEN AND HAS A FULL TIME CHIEF COMPLIANCE OFFICER POSABIT CREATED A DETAILED ANTI-MONEY-LAUNDERING PROGRAM AND POLICY WITH TOP TIER REGIONAL LAW FIRM POSABIT HAS DIRECT RELATIONSHIPS WITH OUR PROCESSORS AND BANKS TO
Slide 14: The Opportunity
THE OPPORTUNITY CURRENT MARKET (BIG) FUTURE MARKET (MASSIVE) · 9,000+ medical and recreational dispensaries in the US · States that recently passed cannabis legislation, market not yet open (e.g. New York) · Average store sales of $3M annually · Continued expansion in current legal markets · Total p
Slide 15: U.S. Legal Market Projections
U.S. LEGAL MARKET PROJECTIONS The U.S. Legal Market is Projected to Reach $43B in 2025(1) Expected to grow at a CAGR of 18%, to reach nearly $48B by 2026(1) ADDRESSABLE MARKETS (US$, B) 50 47.5 $580B Prescription Drugs 2021(2) 43.0 45 39.5 11.2 40 $223B US Alcohol Market 2020(3) 35.0 35 30.0 30 $100
Slide 16: Digital Payment Penetration: Low but Rising
DIGITAL PAYMENT PENETRATION: LOW BUT RISING APPROXIMATELY 70% OF ALL DISPENSARIES ACROSS THE COUNTRY REMAIN EXCLUSIVELY CASH ONLY. CARD PAYMENTS HAVE BECOME INCREASINGLY ACCEPTED IN THE INDUSTRY AND OFTEN PREFERRED FOR SAFETY. STORES THAT USE DIGITAL PAYMENTS SEE STEADILY INCREASING ADOPTION RATES O
Slide 17: POSaBIT's Market Advantage
POSABIT’S MARKET ADVANTAGE POSaBIT is the best payment infrastructure in the cannabis industry. THE COMPETITION POSABIT Leading ACH Leading POB ATM Machines Non-compliant Only Platform Reseller (cash) Systems Full Regulatory Compliance - Transparent Banking Relationships - Custom-Built Software - -
Slide 18: POSaBIT's Greatest Competition Is Cash
POSABIT’S GREATEST COMPETITION IS CASH POSaBIT’s Advantages over Cash · In typical retail environments, cash is only used in 11% of all transactions (down from 16% in 2018). · With a cap on their spending power, deciding on their purchase and discussing options with · In a cash-only dispensary, cons
Slide 19: Federal Legalization
FEDERAL LEGALIZATION The most common question we are asked is “What happens to ? POSaBIT when cannabis is federally legalized?” The more pertinent question is “What will federal legalization even mean for the cannabis industry?” · On day 1 of federal legalization, nothing will change. 7-11 won’t beg
Slide 20: Waves of Legalization
WAVES OF LEGALIZATION WAVE 1: THE PRESENT WAVE 2: HIGH-RISK PROCESSING Few payment processors in Immediately post-federal the industry legalization POSaBIT has the best Cannabis payments will still be infrastructure & solutions considered high-risk Addressable market is sizable Market opportunity wi
Slide 21: Financial Overview
FINANCIAL OVERVIEW [yPOsaBIT 21
Slide 22: Q4 2021 Results
POSABIT Q4 2021 RESULTS Q4 Q4 % 2020 2021 CHANGE Payments $52.4M $104.7M 100% Revenue $3.1M $6.4M 110% Gross Profit $0.79M $1.48M 86% Gross Profit Margin 26% 23% -3% Adjusted EBITDA $0.13M ($1.1)M1 NM . NM – Not Meaningful 22
Slide 23: FY 2021 Results
POSABIT FY 2021 RESULTS 2020 2021 % CHANGE Payments $132M $362M 174% Revenue $7.8M $21.3M 172% Gross Profit $1.7M $5.8M 232% Gross Profit Margin 22% 27% 5% Adjusted EBITDA $(0.55)M ($1.2)M1 NM 1 Adjusted EBITDA for the quarter ended December 31, 2021, was as expected given planned investments made i
Slide 24: Guidance
POSABIT GUIDANCE 2022 TOTAL REVENUE $37.0M - $40.0M TRANSACTION SALES FOR CARD SERVICES $675M - $730M GROSS PROFIT $9.0 - $10.0M 24
Slide 25: Quarterly Financials
POSABIT QUARTERLY FINANCIALS Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 Gross Transactional $15.8M $11.4M $15.6M $26.7M $42.2M $47.3M $64M $87.3M $106.0M $104.7M Sales Revenue $1M $800K $942.2K $1.49M $2.33M $3.1M $3.55M $4.96M $6.4M $6.4M Gross Profit $154.5K $3
Slide 26: Yearly Financials
POSABIT YEARLY FINANCIALS 2019 2020 2021 E2022 Gross Transactional Sales $54M $132M $362M $675 -$730M Revenue $3M $7.8M $21.3M $36.0-$40M Gross Margin Dollars $296.6K $1.68M $5.8M $9.0 - $10M 26
Slide 27: Appendix
APPENDIX [EyPOSaBIT 2 7
Slide 28: Board of Directors
POSABIT BOARD OF DIRECTORS Our board combines their collective cross-industry experience to enhance and support the POSaBIT vision RYAN HAMLIN JON BAUGHER MIKE APKER CEO / Co-Founder / Chairman CRO / Co-Founder / Director Director Former Executive at Former VP, Sales at Placefull Former CEO of Obero
Slide 29: CSE:PBIT and OTC:POSAF
POSABIT (CSE:PBIT AND OTC:POSAF) 52-Week Price Range: Shares Outstanding: Fully Diluted Shares: .17 – 2.40 131,902,645 164,788,479 Board, Management and Associates Ownership: 37% 29
Slide 30: Summary Balance Sheet
SUMMARY BALANCE SHEET As of As of December 31, 2020 December 31, 2021 Cash $977,654 $4,418,788 Total current assets $3,341,840 $3,484,987 Total assets $3,685,719 $7,903,775 Total current liabilities $5,578,180 $5,873,959 Long-term debt $137,849 $134,510 Derivative Liability $1,026,676 $10,602,448 To
Slide 31: Thank You
THANK YOU CONTACT Investor Relations [email protected] CSE:PBIT OTC:POSAF www.posabit.com