Identillect Technologies Corp. Presentation

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TSX-V:ID WWW.IDENTILLECT.COM CORPORATE PRESENTATION TSX-V:ID WWW.IDENTILLECT.COM January 2017 Award-Winning Email Encryption Technology

Transcript of Identillect Technologies Corp. Presentation

Page 1: Identillect Technologies Corp. Presentation

TSX-V:IDWWW.IDENTILLECT.COM

CORPORATE PRESENTATION

TSX-V:ID

WWW.IDENTILLECT.COM

January 2017

Award-Winning Email Encryption Technology

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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.

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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

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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

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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

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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

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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

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BEATING THE COMPETITION

Multi-Platform

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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%)

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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%

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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%

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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

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23686 Birtcher DriveLake Forest, CA92630 USA

888-781-4080

www.identillect.com

TODD [email protected]

THANK YOU!

ARLEN HANSEN604-684-6730

[email protected]

Suite 100 – 736 Granville StreetVancouver, BC

V6Z 1G3 Canada

1-866-684-6730 (toll-free)

www.kincommunications.com