Posabit Systems Corp. · CSE:PBIT
Posabit Systems — Investor Presentation (July 2021)
30 slides from Posabit Systems's investor presentation, July 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION CSE:PBIT OTC:POSAF www.posabit.com
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 300+ 14 CSE OTC 2021 GUIDANCE PBIT POSAF Expected revenue growth: 125% - 140% Expected revenue: $17.5 - $19.0 million Gross Margin
Slide 5: Overview and Milestones
POSABIT OVERVIEW MILESTONES Current Offerings Future Offerings Doubled Revenue each year since 2017 Pure PIN Debit B2B ACH Achieved EBITDA profitability in Q3 2020 Point of Banking In-Store Payment Kiosks Expanded into 14 states Consumer ACH POS Integrations Completed integrations with a variety of
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 OTC Listing, Full Payment Infrastructure, POSaBIT is Launches Payments POSaBIT Goes including B2B Established Solution in WA & CO Public (CSE:PBIT) Payments, Self-Serve Kiosk, & Invoicing NOV 2015- 2015 2016 2017 2018 2019 2020 2021 Builds First Launches Full Launches First Full
Slide 8: Key Growth Drivers
KEY GROWTH DRIVERS NEW MERCHANTS STATE LEGALIZATION DIGITAL PAYMENTS PENETRATION PARTNERSHIPS NEW OFFERINGS 8
Slide 9: Market Expansion
POSABIT MARKET EXPANSION POSaBIT has dispensary partners in 14 states* across the country, and will continue their expansion in 2021. POSaBIT plans to operate in 5 to 8 new states in 2021. *Alaska, Washington, Oregon, California, Arizona, Nevada, Colorado, Oklahoma, Montana, Michigan, Maryland, Penn
Slide 10: Partnerships
POSABIT PARTNERSHIPS <DIVVY “©®Jane LEAF EB peridot AN AKERNA COMPANY QHEADSET = @)wixnwear = weedmaps Mat pines >Leafbuyer. olla Leafly. dutchie ENLIGHTEN see beyond Ospoton @ieverate —sprngdo@ )~=—s metre POSaBIT 10
Slide 11: Investment Highlights
INVESTMENT HIGHLIGHTS [yPOSaBIT 1
Slide 12: Investment Highlights
INVESTMENT HIGHLIGHTS 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: The Opportunity
THE OPPORTUNITY CURRENT MARKET (BIG) FUTURE MARKET (MASSIVE) · 8,000+ medical and recreational dispensaries in the US · States that recently passed cannabis legislation (e.g. New York) · Average store sales of $3M annually · Continued expansion in current legal markets · Total processing opportunity
Slide 14: Legal Market Projections and Addressable Markets
LEGAL MARKET PROJECTIONS The Legal Market is Projected to Reach $22B in 2021(1) Expected to grow at a CAGR of 19%, to reach nearly $38B by 2025(1) ADDRESSABLE MARKETS (US$, B) 40 37.7 $507B Prescription Drugs 2019(2) 35 34.1 $250B US Alcohol Market 2019(3) 29.8 30 25.7 25 21.7 27.6 $100B TOTAL US Ca
Slide 15: Recent Favorable Legislative Changes
RECENT FAVORABLE LEGISLATIVE CHANGES Support for cannabis legalization is one of the fastest-evolving issues in the U.S. · 39 states, DC, Guam, and PR have already SUPPORT FOR FULL LEGALIZATION legalized medical cannabis. (1969 – 2019) LEGAL ILLEGAL · 18 states have also legalized cannabis for 90 84
Slide 16: Digital Payment Penetration: Low but Rising
DIGITAL PAYMENT PENETRATION: LOW BUT RISING ROUGHLY 70% OF ALL DISPENSARIES ACROSS THE COUNTRY REMAIN EXCLUSIVELY CASH ONLY. WHEN STORES BEGIN TAKING DIGITAL PAYMENTS, THEY ALMOST NEVER REVERT TO CASH-ONLY. STORES THAT USE DIGITAL PAYMENTS SEE STEADILY INCREASING ADOPTION RATES OVER TIME. CARD PAYME
Slide 17: POSaBIT's Market Advantage
POSABIT’S MARKET ADVANTAGE POSaBIT has, without a doubt, the best payments 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
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 · With a cap on their spending power, deciding 11% of all transactions (down from 16% in 2018). on their purchase and discussing options with a budtender becomes a lengthier p
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 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 will begin &
Slide 21: Financial Overview
FINANCIAL OVERVIEW [yPOsaBiT 21
Slide 22: Q2 2021 Results
POSABIT Q2 2021 RESULTS Q2 Q2 % 2021 2020 CHANGE Payments $87.2M $26.4M 232% Revenue $4.9M $1.5M 232% Gross Profit $1.3M $0.3M 350% Gross Profit Margin 27% 20% 35% Adjusted EBITDA $185K $(240)K 177% 22
Slide 23: 2021 Guidance
POSABIT 2021 GUIDANCE TOTAL REVENUE $17.5M - $19.0M TRANSACTION SALES FOR CARD SERVICES $350M - $375M GROSS PROFIT MARGIN 28% - 32% EXPAND TO 5 TO 8 NEW STATES 23
Slide 24: Quarterly Financials
POSABIT QUARTERLY FINANCIALS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Gross Transactional $13.7M $13M $15.8M $11.4M $15.6M $26.7M $42.2M $47.3M $64M $87.3M Sales Revenue $897.8K $816.7K $1M $800K $942.2K $1.49M $2.33M $3.1M $3.55M $4.96 Gross Profit $36K $123.8
Slide 25: Yearly Financials
POSABIT YEARLY FINANCIALS 2019 2020 2021 GUIDANCE Gross Transactional Sales $54M $132M $350-$375M Growth Rates N/A 144% 136% Revenue $3.4M $7.8M $17.5-$19M Growth Rates N/A 129% 143% Gross Profit $296.6K $1.68M $5.1M - $5.8 Gross Margin 9% 22% 28% - 32% 25
Slide 26: Appendix
APPENDIX [yPOsaBiT 26
Slide 27: 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 28: POSaBIT (CSE:PBIT and OTC:POSAF)
POSABIT (CSE:PBIT AND OTC:POSAF) 52-Week Price Range: Shares Outstanding: Fully Diluted Shares: .045 - .50 109,222,139 149,206,406 Board, Management and Associates Ownership: 37% 28
Slide 29: Summary Balance Sheet
SUMMARY BALANCE SHEET Increase in cash due to EBITDA profits and $2M private placement in Feb. 2021 As of As of June 30, 2021 DECEMBER 31, 2020 Cash $4,952,491 $977,654 Total current assets $3,013,283 $2,364,186 Total assets 8,332,742 $3,685,719 Total current liabilities $7,330,527 $5,578,179 Long-t
Slide 30: Thank You
THANK YOU CONTACT Investor Relations [email protected] CSE:PBIT OTC:POSAF www.posabit.com