Posabit Systems Corp. · CSE:PBIT
Posabit Systems — Investor Presentation (February 2022)
31 slides from Posabit Systems's investor presentation, February 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION CSE:PBIT OTC:POSAF www.posabit.com February 2022
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+ 15 CSE OTC 2021 GUIDANCE 2022 GUIDANCE PBIT POSAF Revenue growth: 140% - 160% Revenue1: $19.0 - $20.5 million Revenue1: $36.0
Slide 5: POSaBIT Overview: Milestones and Product Offerings
POSABIT OVERVIEW MILESTONES PRODUCT OFFERINGS CURRENT DEVELOPING Doubled Revenue each year since 2017 Payment Processing POSaBIT Franchise Mgr. Expanded into 15 states • PIN Debit Invoicing Completed integrations with a variety of • Point of Banking Payroll/HR industry partners (Weedmaps, Jane, • Co
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 Full Vertical Integration w/ ERP Service, Advanced B2C Payment App, Builds First Launches First New CBD Point of Fully-Compliant, Non-Cash Launches Full Fully-Mobile Sale, Credit for CBD, Payment Solution Point-of-Sale System Point-of-Sale System, for Dispensaries for Dispensari
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 15 states* across the country and plans to continue its expansion in 2022. New Markets - Currently Onboarding Merchants in: New Jersey, Illinois, Connecticut, West Virginia Target Markets for Expansion: Delaware, Florida, Hawaii, Louisiana,
Slide 10: Partnerships
POSABIT PARTNERSHIPS <DIVVY “©®Jane LEAF EB peridot AN AKERNA COMPANY QVHEADSET = Ga) wixwear = eedmaps 4M at eimerc >Leafbuyer. olla Leafly. dutchie ENLIGHTEN see beyond Ospoton Oversee sng )~— metre POSaBIT 10
Slide 11: Investment Highlights
INVESTMENT HIGHLIGHTS [yPOSaBIT 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) · 8,500+ 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 15: U.S. Legal Market Projections
U.S. LEGAL MARKET PROJECTIONS The U.S. Legal Market is Projected to Reach $30B in 2022(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) 44.0 45 39.5 11.2 40 $223B US Alcohol Market 2020(3) 35.0 35 30.0 30 $100
Slide 16: Recent Favorable Legislative Changes
RECENT FAVORABLE LEGISLATIVE CHANGES Support for cannabis legalization is one of the fastest-evolving issues in the U.S. SUPPORT FOR FULL LEGALIZATION · 36 states, DC, Guam, and PR have already (1969 – 2021) legalized medical cannabis. LEGAL ILLEGAL 100% · 18 states have legalized cannabis for adult
Slide 17: Digital Payment Penetration: Low but Rising
DIGITAL PAYMENT PENETRATION: LOW BUT RISING APPROXIMATELY 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
Slide 18: 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 19: 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 20: 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 21: 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 22: Financial Overview
FINANCIAL OVERVIEW [yPOsaBiT 22
Slide 23: Q3 2021 Results
POSABIT Q3 2021 RESULTS Q3 Q3 % 2020 2021 CHANGE Payments $42.2M $106M 151% Revenue $2.3M $6.3M 174% Gross Profit $0.57M $1.43M 151% Gross Profit Margin 25% 22% -12% Adjusted EBITDA $0.04M ($0.5)M1 NM 1 Adjusted EBITDA for the quarter ended September 30, 2021, was as expected given planned investmen
Slide 24: Guidance
POSABIT GUIDANCE 2021 TOTAL REVENUE1 2022 TOTAL REVENUE1 $19.0M - $20.5M $36.0M - $39.5M TRANSACTION SALES FOR CARD SERVICES $350M - $375M GROSS PROFIT MARGIN 28% - 32% 1 As of November 30, 2021. Subsequently, the company announced it expects to exceed the high end of its 2021 revenue guidance in a
Slide 25: Quarterly Financials
POSABIT QUARTERLY FINANCIALS Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 Gross Transactional $13M $15.8M $11.4M $15.6M $26.7M $42.2M $47.3M $64M $87.3M $106M Sales Revenue $816.7K $1M $800K $942.2K $1.49M $2.33M $3.1M $3.55M $4.96M $6.4M Gross Profit $123.8K $154.
Slide 26: Yearly Financials
POSABIT YEARLY FINANCIALS 2019 2020 2021 2022 GUIDANCE GUIDANCE Gross Transactional Sales $54M $132M $350-$375M Growth Rates N/A 144% 136% $19.0- $36.0- Revenue $3.4M $7.8M $20.5M1 $39.5M1 Growth Rates N/A 129% 158% Gross Profit $296.6K $1.68M $5.1M - $5.8 Gross Margin 9% 22% 28% - 32% 1 As of Novem
Slide 27: Appendix
APPENDIX [yPOsaBiT 27
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: POSaBIT (CSE:PBIT and OTC:POSAF)
POSABIT (CSE:PBIT AND OTC:POSAF) 52-Week Price Range: Shares Outstanding: Fully Diluted Shares: .17 – 2.40 131,902,645 154,928,064 Board, Management and Associates Ownership: 37% 29
Slide 30: Summary Balance Sheet
SUMMARY BALANCE SHEET Increase in cash due to EBITDA profits and $2M private placement in Feb. 2021 As of As of September 30, 2021 December 31, 2020 Cash $5,494,213 $977,654 Total current assets $8,788,281 $3,341,840 Total assets $9,149,137 $3,685,719 Total current liabilities $6,035,339 $5,578,180
Slide 31: Thank You
THANK YOU CONTACT Investor Relations [email protected] CSE:PBIT OTC:POSAF www.posabit.com