Post on 23-Jun-2020
NASDAQ: FNJN
December 14, 2017New York City
Finjan Analyst Event
Safe Harbor Statement
The following presentation is prepared as of December, 2017 andoutlines matters for informational purposes only. This documentdoes not constitute an offer to sell or a solicitation of an offer tobuy any securities of Finjan Holdings, Inc. (“Finjan”, “we” or “us”).
This presentation includes “forward-looking statements” within themeaning of Section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities Exchange Act of1934, as amended. These statements include statementsregarding our expectations, intentions, beliefs and projectionsabout our future results, performance, prospects andopportunities. These statements can be identified by the fact thatthey do not relate strictly to historical or current facts or by theuse of words such as “anticipate,” “believe,” “could,” “estimate,”“expect,” “intend,” “may,” “plan,” “project,” “potential,” “should,”“will,” “will be,” “would,” the negative of these terms and similarexpressions, but this is not an exclusive way of identifying suchstatements. Readers are cautioned that forward-lookingstatements are not guarantees of future performance. Our actualresults, performance and achievements may differ materially fromthose expressed in, or implied by, the forward-looking statementscontained in this presentation as a result of various risks,uncertainties and other factors. Important factors that could causeour actual results to differ materially from our expectationsinclude, without limitation, our ability to execute our businessplan, the outcome of pending or future enforcement actions, ourability to expand our technology portfolio, the enforceability of ourpatents, the continued use of our technology in the market, the
development of a liquid trading market for our securities and otherfactors described under Item 1A, “Risk Factors,” as set forth inthe Company’s Annual Report on Form 10-K filed on March 27,2017 or Quarterly Report on Form 10-Q filed with the SEC andany subsequent quarterly or current reports.
The Company will continue to file annual, quarterly and currentreports, proxy statements and other information with the SEC.Forward looking statements speak only as of the dates specifiedin such filings or presentations. Except as expressly requiredunder federal securities laws and the rules and regulations of theSecurities and Exchange Commission, we do not undertake anyobligation to update any forward-looking statements to reflectevents or circumstances arising after any such date, whether as aresult of new information or future events or otherwise. Youshould not place undue reliance on the forward-lookingstatements included in this presentations or that may be madeelsewhere from time to time by us, or on our behalf. All forward-looking statements attributable to us are expressly qualified bythese cautionary statements.
Our filings with the SEC are available to the public on, and maybe reviewed at, the SEC’s internet website www.sec.gov and onFinjan’s web site www.finjan.com. You may also read and copyany document that Finjan files with the SEC at the SEC’s PublicReference Room, 100 F Street, N.E., Washington, D.C. 20549.Please call the SEC at 1-800-SEC-0330 for further information onthe Public Reference Room and their copy charges.
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
2
Investor Day: Agenda
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
3
Ø Phil Hartstein, CEO Welcome and IntroductionØ John Garland, Business Development Finjan Licensing
Break
Ø Julie Mar-Spinola, CIPO Finjan EnforcementØ Eyal Harari, CEO, CybeRisk CybeRiskTM
Break
Ø Scot Robinson, Senior Director Finjan MobileØ Michael Noonan, CFO Operational and Financial Update
Q&A Session(Q&A will be held in a panel format)
NASDAQ: FNJN
Phil HartsteinCEO
Welcome
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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IP LicensingPortfolio of landmark cybersecurity patents resulting from $65M in R&D and in-house product development
Real-time behavior-based threat detection, used in modern security architectures
FinjanCybersecurity
BusinessDiversified public company
focused in four areas
FinjanMobile®
VitalSecurity® to protect consumer’s mobile devices from the internet’s malicious content;
incorporates Finjan patented technologies
Exploring protecting mobile phones in the workplace while securing
personal and corporate data
Cybersecurity Advisory ServicesCybeRisk™ Security Solutions Ltd. Based in Palo Alto with offices in Tel Aviv
Risk assessment & Risk advisory services tailored to meet compliance and governance needs from “server room to the board room”
Investments In Innovation
$5M commitment to innovationfund managed by Jerusalem
Venture Partners (JVP)
Limited Partner in early-stage cybersecurity technology companies
alongside Cisco, Qihoo360 and Alibaba
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Licensing
NASDAQ: FNJN
John GarlandDirector of Business Development
John Garland; Finjan Licensing
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• 24 years of IP experience derived from leading global corporations with management and executive experience
• Behind Finjan’s licensing 2.0 revamp in August 2015 (2.5 years)
Present2012 - ’152008 - ’122001 - ’081996 -’011993 – ‘95
(Nortel)
7
The Art of Licensing
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Great Technology
• Finjan has a great team to create innovative and disruptive technologies
Great Patents
• Finjan has been awarded more than 50 Patents around the world
• Finjan’s patents continue to be valid despite a barrage of validity challenges
Great Demand
• Cybersecurity as a market continues to grow, further enabling licensing potential
• Currently in >25 licensing discussions
Best Practices and Core Values
• Finjan set the industry standard on licensing behaviors
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Finjan’s Licensing Best Practices
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Finjan researches each company, learns about products, and compares their offerings to Finjan’s patented technologies
Then we approach with a history of Finjan, our technology, our patents and invite them to engage in a dialogue
We then hold a number of in person and online meetings to discuss the legal and technical merits of a license
We negotiate to agreement:• Scope of license• Value to both parties• Financial terms
Table of Contents
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549___________
FORM 10-K___________
Mark One)
ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For Fiscal Year Ended: December 31, 2016
OR
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 001-33304
___________
FINJAN HOLDINGS, INC.(Exact name of registrant as specified in its charter)
___________
Delaware 20-4075963
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
2000 University Avenue, Suite 600, East Palo Alto, CA 94303
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: 650-282-3228
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.0001 per share
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No ý Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes ¨ No ý Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirementsfor the past 90 days. Yes ý No ¨ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data Filerequired to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for suchshorter period that the registrant was required to submit and post such files). Yes ý No ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, andwill not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of thisForm 10-K or any amendment to this Form 10-K. ¨ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. Seethe definitions of the “large accelerated filer,” “accelerated filer,” “non-accelerated filer” and “smaller reporting company” in Rule 12b-2 of theExchange Act. (Check one):
Large accelerated filer ¨ Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller reporting company ý
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ý As of June 30, 2016, there were 22,806,609 shares of the registrant’s common stock, par value $0.0001 per share, issued and outstanding. Of these,17,658,670 shares were held by non-affiliates of the registrant. The market value of securities held by non-affiliates was $32,138,779 as of June 30,2016, based on the closing price of $1.82 for the registrant’s common stock on June 30, 2016. As of March 23, 2017, there were 23,139,216 shares of the registrant’s common stock, par value $0.0001 per share, issued and outstanding.
DOCUMENTS INCORPORATED BY REFERENCE:Portions of Finjan Holdings, Inc.’s Proxy Statement in connection with its Annual Meeting of Stockholders to be held in 2017 are incorporated by
reference into Part III of this report.
2000 University Ave., Suite 600 East Palo Alto, California 94303
October 4, 2013
Mike Smith General Counsel Company, Inc. Address City State Zip Re: Finjan’s Network Security Patents
Dear Mr. Smith,
I am writing to engage COMPANY in a business discussion centered on Finjan’s patent portfolio. Finjan has spent a considerable amount of time, effort and resources to secure our network security inventions with U.S. and foreign patents. Because of this dedication of resources and commitment to developing enabling technologies we believe our patented contributions have value and thus merit a compensatory license.
After concluding a comprehensive investigation, we believe Palo Alto Networks technology is infringing several of Finjan’s patents. This letter is intended to provide you with background on Finjan, information on our patented technologies, our enforcement and licensing activities, and a representative example of how Palo Alto Network’s technology implicates one of Finjan’s patents.
1. A Brief History of Finjan
Founded in 1997, Finjan is recognized as a pioneer in the endpoint, web, and network security industries. Finjan’s early technology innovations and products helped define the state-of-the-art for detecting and deflecting software intrusions and malicious code delivery. Finjan was the pioneer in the developing of proactive security technologies capable of detecting previously unknown and emerging online security threats recognized today under the umbrella of “malware.” These technologies protect networks and endpoints by identifying suspicious patterns and behaviors of content delivered over the internet and through corporate networks to endpoint devices. These innovations have enabled today’s hardware and security infrastructure across numerous technology market verticals.
2. Finjan’s Licensing and Enforcement Program
Finjan is willing, on a limited basis, to hold amicable and constructive licensing discussions and believes an open dialogue is in the best interest of both parties. Finjan has licensed its patents to five software and technology companies, some through litigation and others without any assertion. Our non-confidential licensees include Microsoft, M86, and
When completed, we communicate the news with shareholders
9
The Cybersecurity Landscape
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Key Security Markets
• Endpoint Security
• Security & Vulnerability Management
• Networking and Firewall
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2016 2017 2018 2019 2020 2021
$2,795 $3,112 $3,406 $3,779 $4,212$4,677
$5,090$5,676 $6,342
$7,010$7,698
$8,403$9,471 $9,896 $10,374 $10,854 $11,305 $11,686
$ MSource: IDC
Firewall Security & Vulnerability Endpoint Security
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Notable Acceleration and Longevity>$300M in Licensing Fees to Date
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
EnforcementLITIGATION | LICENSING | POLICY | OUTREACH
NASDAQ: FNJN
Julie Mar-SpinolaCIPO, VP of Legal Operations
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
LitigationUSDC No. District
- Mediator on complex disputes
- Merit Selection Board
LicensingEnforcement of Finjan’s Core
Values and Best Practices
Community OutreachChIPsNetwork.org
- CoFounder & Chair Emeritus- President, Student Chapters- President DivE-In (Diversity, Equality, Inclusion Initiative)
Policy/InitiativesPPAC: Advise Senators & Representatives on patent
reform
Roles, Responsibilities, and Reinforcements13
Blue Coat Matters
BC1: 5:13-cv-03999-BLF
• Verdict: August 4, 2015
• Jury Award: $39,528,487
• Pre and Post Interest
BC2: 5:15-cv-03295-BLF
• Verdict: Nov. 20, 2017
• Validity of Asserted Patents undisputed
• Verdict:– 2 patents: infringed– 2 patents: not infringed– 2 patents: hung jury, to
be retried in BC3
• Award: $490,000
BC3: 5:15-cv-03295-BLF
• Retrial: Jan. 8, 2018
• Validity of ‘844 and ‘494 patents undisputed
• Same infringement issues
• Seeking $46M, plus appropriate enhancements
BC1: Appeal to CAFC
• Oral Argument: 9/8/17– Patent eligibility ‘844– Damages ‘844
• Decision: any day
• At least $15M of Jury Award stands as undisputed.
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Symantec: 4:14-cv-02998-HSG
• Trial commences: July 9, 2018
• Intervenor: IAC (SafeSearch)
• Finjan seeking:• Reasonable royalty for infringement of the Asserted Patents• Injunctive relief• Willful infringement• Attorneys’ Fees
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Pending District Court Matters
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Company & Case Number Status UpdateFireEye4:13-cv-03133-SBA
Markman: 1/18//18Trial date pending
Palo Alto Networks4:14-cv-04908-EMC
Stayed: pending IPR appeals
Cisco5:17-cv-00072-BLF
Markman: 6/15/18Trial: 5/29/20
ESET3:17-cv-00183-CAB (CASD)
Markman: completeTrial date pending
SonicWall5:17-cv-04467-BLF
CMC: 12/14/17
Bitdefender4:17-cv-04790-HSG
Markman: 6/6/18
Juniper Networks3:17-cv-05659-WHA
CMC: 1/11/18
Zscaler3:17-cv-06946-MEJ
Recently filed
16
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
CybeRiskTM
NASDAQ: FNJN
Eyal HarariCEO, CybeRisk
Background and Experience
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• 2015 – Current – CybeRisk
• 2014 – 2015 Cisco (NASDAQ: CSCO), Operations Manager at Cyber CoE
• 2012 – 2014 – Security Art, VP Operations
• 2010 – 2012 – Independent Business Consultant
• 2000 – 2010 – Amdocs (NASDAQ: DOX) Corporate Strategy Manager
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Offered Services
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Atta
ck &
Pen
etra
tion §Penetration
Testing§Red Team
Res
pons
e Te
am
§Incident Response§Forensics§Threat Intelligence
Advi
sory
Ser
vice
s §War Games§Crisis Management§Business Continuity§Security Architecture§Board Advisory§Employees Awareness
Attack & Penetration
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Black Box Penetration Testing
Full Red Team Exercise (CTF)
$5k - $25k
$100k - $250k
Web ApplicationsExternal Digital FootprintInternal NetworksWireless NetworksDevices & Machines
Black Box
To
Gray Box
1 Week
2-3 Months
Advisory Services – War Games
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Technical Seminar Cross-Org. Seminar
• Agenda• Role-play based on actual
findings• Measure activities against
policies and procedures
• Attendees• Security Team• Network• IT
• Agenda• Role-play based on actual
events• Measure activities against
organization’s policies and procedures
• Attendees• Senior reps. from all
departments• Security managers• Senior management
Key Customers & Partners
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Customers Partners
Plans for 2018 and Beyond
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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•Recurring projects with existing customers• On-going testing• Expand services
Focus on Europe• Financial Services• GDPR
New Services• Threat Intelligence• Crisis Management
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
FinjanMobile®
NASDAQ: FNJN
Scot RobinsonSenior Director, Finjan Mobile
Scot Robinson: Senior Director of Finjan Mobile
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• SVP for 12 Years at NYC Investment Banking firm Dillon Read
• Several startup successes and exits• ParenthoodWeb.com as founder sold to United News & Media• DayTracker as co-founder sold to Franklin Covey• Regards.com as co-founder sold to RareMedium• Pictage.com as investor and board member sold to Apax Partners
• Co-Founder of The APP Company• Created over 50 apps for IOS and Android• Featured on iTunes and co-marketed by Apple • Worked and/or Partnered with Astronaut Buzz Aldrin, Los Angeles Lakers starter Ron Artest,
Canada’s Rogers Cup, BNP Paribas Open, University of Southern California, Arizona State, Boise State, University of Hawaii, Cal Berkeley among others
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Finjan Mobile
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• Began work with Finjan Mobile subsidiary in January 2016
• Launched FinjanMobile Secure Browser v1.1, February 2016
• Developed Geo Authentication proof-of-concept App and back-end CMS in 2016
• VitalSecurity Gen3 Mobile Secure Browser launched October 2016
• First patent issued January 2017: US patent number 9,554,279 Authorized Areas of Authentication
• 5 pending US patents & 2 pending international patents• VitalSecurity Gen3.5 Secure Mobile Browser launched April
2017 and Gen3.7 launched June 2017
• VitalSecurityVPN Gen4.0 Launched September 2017
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VitalSecurityVPNTM - Overview
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• Available for IOS, Android, Windows and Mac Platforms
• VPN technology result of cross-licensing deal with Avira
• First integrated VPN and Browser for IOS & Android
• New user interface and onboarding experience
• Tracker Transparency and Blocking
• Users can choose to use App as standalone VPN or integrated Browser + VPN
27
VitalSecurityVPN – VPN/Browser Integration
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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VitalSecurityVPN - Performance
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• 200k+ installs in 90 days
• Over 70k registered users captured for a 35% conversion rate: installs to registered users.
• 4.5 star rating on Google Play with over 2,200 reviews
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VitalSecurityVPN – Current Pricing Model
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
500MB OF VPN FREE, REGISTER TO RECEIVE 1GB OF FREE MONTHLY DATA
Unlimited Data on Mobile Devices Only Unlimited Data on All Devices
$4.99/month or $39.99/year $7.99/month or $59.99/year
30
VitalSecurityVPN - Marketing
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• Facebook Video Campaigns Targeted at Security Conscious Users• Apple Search Ads• Papaya Mobile Advertising Network• Avira Desktop Network per Cross-Licensing Agreement• Pre-Loads on Android devices in US with Sprint, Cingular and Cricket, and
International Carrier Reliance Jio in India• Billboard on the 101 Freeway• Newsletter Marketing to Registered Users• Google Advantage Program
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VitalSecurityVPN - Roadmap
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• VPN currently includes 22 locations, expand to additional locations
• Translate Apps to 12 languages
• One million installs during 2018
• Auto-connect VPN when connected to unsecured networks
• Promotions and alternative pricing models
• Chrome/Safari/Firefox Extensions for Tracker Blocking and Malware Scanning
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NASDAQ: FNJN
Michael NoonanCFO
Operational and Financial Update
* Retirement of Series A Preferred shares and Contingencies (totaling $9.5M), Series A-1 and Common share offering raised $25.7M** Does not include Jury awards currently >$40M and does not include contracted revenue
Strong Momentum Heading into 2018
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
35
$15.3M Series A-1 Preferred
2017
$13MPublic Offering
2017• 15.3M Series A Preferred Stock;
153K shares @ $100 per share
• Warrant to purchase 2.3Mcommon shares at $3.18; exercisable following 3 month anniversary up to 36 months
• Issued 3.6M common sharesat $3.15. Approximately $11.3M to Company
• Exercised over-allotment option of 540,000 shares closed on July 25 an additional $1.7M to Company
Cash
$33.4M
Recent Capital Raise ActivityFinjan Sends Strong Message with Strengthened Balance Sheet
Balance Sheet as of 9/30/17
Strategic Innovation Fund Investment
• Research & development, investment and incubation globally
• Access to a pool of innovative technology and valuable cybersecurity patent assets
• 11 active cybersecurity investments
• 2 early exits
36
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
PayPal Acquisition
Huawei Acquisition
Strategic LP’s Fund Exits
Finjan Blue, Inc. - New Subsidiary in Collaboration with IBM
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Cooperative Relationship with IBM• IBM and Finjan Blue to cooperatively monetize assigned patents• Two companies will evaluate new opportunities from these or additional assets
in the future
Key Terms• IBM assigns 25 issued US and 16 issued and pending patents worldwide• IBM to support licensing and development efforts• Finjan Holdings to invest $8.5M over 5 years with IBM• Finjan to manage the monetization and retain all net proceeds from Finjan Blue
* Retirement of Series A Preferred shares and Contingencies (totaling $9.5M), Series A-1 and Common share offering raised $25.7M** Does not include Jury awards currently >$40M and does not include contracted revenue
Solid Revenue Growth; Strong Cash Position
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Investor Summary
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Key Statistics As of September 30, 2017
Ticker FNJN (NASDAQ)
Stock Price (as of 11/09/17) $2.03
52-Week Trading Range $1.00 - $4.06
Mkt. Cap (as of 11/09/17) $54.4M
EPS (2017 YTD) $0.34
Common Shares Outstanding 27.3M
Current Cash $33.4M
Licensing Fees Under Contract* $5.9M
Preferred Shares Outstanding 15.3M
Debt $0
* Licensing Fees Under Contract over the next 12 months
NASDAQ: FNJN
Q&A Panel