Investor Presentation - Summer 2021 Empowering workforces with cutting edge, easy-to-use solutions that defend against cybersecurity threats ...
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Investor Presentation Summer 2021 Empowering workforces with cutting edge, easy-to-use solutions that defend against cybersecurity threats.
2 Disclaimer All financial information contained herein is unaudited. There is a risk that audited information will differ significantly from the financial information presented herein and that technical and financial assumptions, objectives and projections may fail to materialize. The information provided herein is management’s best understanding as of this date of the potential of the company and the related financial benefits, but it is the responsibility of the potential investor to form its own opinion contrasting the information provided with other sources of information for completeness and reasonableness. This presentation is not an offering memorandum and does not constitute: (i) an offer to sell or a solicitation of an offer to buy by anyone in Canada or any other jurisdiction in which such offer or solicitation is not authorized or (ii) in which the person making such offer or solicitation is not qualified to do so; in each case to (a) any person resident in Canada or to whom it is unlawful to make such an offer or solicitation, or (b) to any person other than the offeree to whom this presentation is made. You are directed to inform yourself of and observe any restrictions and all legal requirements of your jurisdiction of residence in respect of the acquisition, holding and disposition of the shares offered hereby. The distribution of the shares contemplated hereunder will be made by the Company only to subscribers meeting certain suitability standards. The shares are being offered subject to prior sale, withdrawal, cancellation or modification of the offer and to further conditions. The Company reserves the right, in its absolute discretion, to decide which subscriptions will be accepted and which will be rejected, and to allot to any subscriber fewer than the number of shares subscribed for by such subscriber. Subscribers will be required to make certain acknowledgements, representations and agreements upon initial issuance, including representations with respect to their net worth or income and their authority to make such investment, as well as representations that they are familiar with and understand the terms, conditions and risks of this offering. Prospective investors should thoroughly review this presentation and are advised to consult with their professional advisors to assess the business, legal, income tax and other aspects of this investment. This investment is suitable only for subscribers of substantial net worth that are willing and have the financial capability to bear the economic risk of an investment for an indefinite period of time. There is currently no public trading market for the securities nor can it be assured that one will develop in the foreseeable future. Any transfer or resale of the shares or any interest or participation therein will be subject to significant restrictions. Confidentiality The information contained in this presentation is for discussion purposes only and is strictly confidential information of the Company. This presentation is furnished to you on a confidential basis solely for the purpose of providing you with information regarding the Company. By your acceptance hereof, you covenant that neither you nor your agents, representatives, directors or employees will copy, reproduce or distribute this presentation or the information herein to others, in whole or in part, at any time, without the prior written consent of the Company and that you will keep confidential this presentation, the information herein and any information otherwise obtained from the Company. Certain information set forth in this presentation contains “forward-looking information”, including “financial highlights”, under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects and partnerships; (iv) execution of the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; and (v) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Investor Presentation • Why Now 3
Colonial Pipeline was hit with
a ransomware attack on May 7,
2021, impacting the supply-chain
and fuel access for 12,000 gas
stations.
45% of all fuel consumed
on the U.S. East Coast runs
through the pipeline. This led to
fuel shortages and panic buying.
Due to a compromised
password, attackers were able to
steal 100GB of data and extract
$5M from the company in
exchange for a faulty encryption
tool.
Plurilock empowers
customers to defend against
attacks like Colonial Pipeline.Investor Presentation • Cybersecurity Market 4
Cybersecurity is a $1T Opportunity
STAFFING SHORTAGES
3.5 Million
cybersecurity jobs left unfulfilled2
MORE VECTORS FOR THIRD-PARTY RISK
>120 security vendors $1T
Global cybersecurity
enterprises need to manage3
spending from
2017-2021
CYBERSECURITY VENTURES
ATTACKS ON THE RISE
2020: More records compromised
than in last 15 years combined1
1. Canalys: https://www.canalys.com/newsroom/cybersecurity-investment-2020
2. Cybersecurity Ventures: https://cybersecurityventures.com/jobs/
3. BizTech: https://biztechmagazine.com/article/2019/03/rsa-2019-most-organizations-use-too-many-cybersecurity-toolsInvestor Presentation • Problems Facing Customers 5
Cyber Attacks Increasing in Sophistication
Anatomy of a Cyber Attack
Initial Lateral Actions on
Persistence Exfiltration
access movement objective
We ensure the right person is
attached to the right credentials
Our solutions empower Plurilock's products offer Our solutions are a crucial
customers by equipping them continuous identity piece of a defense in-depth
to defend against attacks assurance, so organizations strategy and Zero Trust
throughout the cyber kill can quickly identify and limit environment
chain the damage of a breachInvestor Presentation • Company Overview 6
Corporate Profile
Innovative AI Offices
• Victoria, Canada (HQ)
Cybersecurity Company • Los Angeles, United States
• Mumbai, India
for Tomorrow’s Threats Staff ~40 Staff
Trading
OVERVIEW • TSXV: PLUR (Sep '20)
• OTCQB: PLCKF (Jan '21)
Plurilock provides identity-centric cybersecurity solutions for
workforces. We operate two divisions:
Cash $5.8M1
• TECHNOLOGY DIVISION: We build and market patented AI
cybersecurity software to defend workforces from cyber
threats and enable compliance with regulatory standards,
while reducing end-user friction. Customer Profile
Customers: 140+
• SOLUTIONS DIVISION: We seek to grow our distribution by
Geography: North America
acquiring IT and cybersecurity solutions providers.
Industries: Government,
Healthcare, Education, Finance
1 As of Mar 31, 2021Investor Presentation • Technology Division 8
Technology Division
Cybersecurity Products to Defend Workforce Identities
PROBLEM PLURILOCK'S TECHNOLOGY PRODUCTS ARE DESIGNED TO:
Existing authentication is ü Heighten security ü Comply with regulation
frustrating to use and only ü Reduce end-user friction ü Defend workforces
occurs once or twice during
the day.
ADAPT DEFEND
Invisible Login MFA Continuous Authentication
SOLUTION Deter attackers from using Reduce security friction and
Invisible authentication software stolen credentials, invisibly enable analysts to spot and monitor
real intruders, not distractions
both at login and throughout the
workday. MSRP $3/Month/User MSRP $9/Month/User
80%+ Margins1 Cloud-first AI-enabled Annual Billing Terms
1 As of Mar 31, 2021Investor Presentation • Patented Artificial Intelligence Technology 9
Artificial Intelligence Experts
and Behavioral Biometrics Pioneers
Validation
Behavioral Profile All-day Protection 35,000+ R&D hours
Every person moves, works, and acts in Unlike passwords which only protect 10,000+ lab hours
completely unique ways that act like a at the time of login, Plurilock's AI PhD data scientists
key to unlock access continuously measures risk 120+ journal articles
throughout the day 2,500+ citations
6 issued & provisional patents
CONTINUOUS IDENTITY RISK SCORE
Types of Micro-expressions Analyzed
clicks direction graphs release dwell
How a user types How a user
on a keyboard moves the pointer scrolling location flight motion deviceInvestor Presentation • Business Strategy 10
The Strategy
Management is focused on executing the priorities
of the company, which include:
1. Grow 2. Cross-sell 3. Optimize
Acquire additional scale to Offer existing customers Leverage technology and
increase distribution and new AI capabilities to global footprint to increase
access to customers heighten security and efficiencies
reduce end user frictionInvestor Presentation • Solution Division Introduction 11
Aurora Acquisition Increases Distribution
STRATEGIC RATIONALE
Expanding
Addressable Market GROW
• Key contracting vehicles expands
Government
Contracting Vehicles2: target market, unlocks ability to
sell into new US Federal & CA
Transaction • NASA SEWP: Access to US State markets
Plurilock acquired Aurora, an IT & Federal Civilian & Defense
• Established DOD contractor with
cybersecurity solutions provider agencies, representing 9M existing qualifications ("quals")
based in Los Angeles, CA on Mar 31 federal workers
supports new business
• California CMAS: Access to opportunities
Transaction cost: US$1.5M 174+ state agencies,
representing 230k • Professional services team
• 60% ($900k) cash enables option for under-staffed
state workers
financed using cash on hand customers for deployment services
• 20% shares at $0.54 Customer segments:
CROSS SELL
• 20% earn out shares • US Federal
• Offer our patented AI products to
• California State, Local the established customer base
Aurora 2020 Sales: US$28.1M and Education (SLED)
Aurora 2020 Customers: 140+ • Commercial
1. https://www.plurilock.com/press-release/plurilock-completes-acquisition-of-aurora-systems-consulting-inc/
2. https://www.brookings.edu/policy2020/votervital/public-service-and-the-federal-government/
& https://sco.ca.gov/ppsd_empinfo_demo.htmlInvestor Presentation • Revenue Growth Plan & Divisions 12
Cross-sell High Margin Products
Plurilock is positioning itself to execute on M&A opportunities in cybersecurity in order to maximize profitable
growth across two divisions. We expect to create additional value through synergies between divisions.
Gross Margin1 ~5% ~88%
Goal as a % of
Revenue
Management's long-term plan is to grow the Technology Division to be our key revenue driver,
with expected increase in gross margin and Annual Recurring Revenue (ARR).
1 As of Mar 31, 2021Investor Presentation • Management Team 14
Proven Management Team
Ian L. Paterson Roland Sartorius, CPA
CEO CFO
10-year analytics entrepreneur, 25-year proven senior chief financial
proven track record in commercializing officer with experience and multiple
data science solutions and landing exits in public, high-growth North
multi-million dollar accounts. American and European companies.
Jord Tanner Dr. Youssef Nakkabi
CTO VP Data Science
20-year technologist instrumental in scaling 15-year research and technical
a previous venture-backed data analytics professional in the machine learning,
start-up from zero to 500k SaaS users artificial intelligence, and information
before its sale to eBay. security fields.
Dr. Aron Hsiao Philip de Souza, MBA
VP Product President, Aurora
20-year technologist, doctorate in 30-year information technology
the sociology of media and technology, veteran and growth-focused leader,
human-computer interaction expert, experienced in helping federal, state,
former NYU faculty member. local, education, and enterprise
customers solve cybersecurity challenges.Investor Presentation • Board and Advisors 15
World-class Directors and Advisors
Robert Kiesman Ian L. Paterson Barry Carlson Molly Falconer de Ramel
Chairman Director Director Director
Private business owner and 10-year data analytics Veteran executive and investor Over 20 years as a leader who
corporate lawyer specializing in entrepreneur with proven track who served for 30 years has advised executives at Citi,
securities law and mergers record commercializing data in leadership and governance Bank of America, Blackstone,
and acquisitions. He serves as science solutions and landing roles in the software and Credit Suisse, JP Morgan Chase,
Vice Chair of the board of multi-million dollar accounts. information technology industries Morgan Stanley, and UBS.
directors of the Provincial Health in BC.
Services Authority.
ADVISORS
Dr. Issa Traore Chris Pierce
VADM Mike McConnell Ed Hammersla
Director Director
Previously served as the Director VADM Jan Tighe Gaetan Houle
Formerly head of Raytheon
of the National Security Agency Cyber Products and President of
under Presidents Clinton and Forcepoint Federal. Ed held a
George H.W. Bush, and Director leading role in developing SELinux
of National Intelligence under and has held leadership positions
Presidents George W. Bush and with IBM, Informix Federal, NEC,
Obama. Retired as Vice-Chair of and Trusted Computer Solutions.
Booz Allen Hamilton.Investor Presentation • Cap Table 16
Share Capital Table
Capital Structure – June 1, 2021
Listing Price (Sept 24, 2020) $0.30
Share price (June 1, 2021 5-day VWAP) $0.54
52-week high/low $0.85/$0.22
Market capitalization $31.7M
Common shares outstanding 58.7M
Warrants1 13.5M
Options2 8.3M
Fully diluted shares outstanding 80.5M
Cash3 $5.8M
1. 52% Expire Sept-2022, Strike price $0.40, 55% expire Feb-2023, Strike Price $0.65. Represents $6.8M assuming full exercise
2. 10-year term, avg strike of ~$0.36
3. As of March 30, 2021Investor Presentation • Recent Highlights 17
Track Record of Execution
Q3 2020 Q4 2020 Q1 2021 Q2 2021
• Sep: Completed • Oct: Strengthened • Jan: Began trading • Apr: Acquired Aurora
$2.6M private financing leadership team on OTCQB Exchange as Systems on Mar 31, a
OTCQB: PLCKF US$28M cyber solutions
• Sep: Began trading on • Dec: Launched provider
TSX Venture exchange Mobile App suite, • Feb: Closed $5.2M equity
as TSXV: PLUR enhanced server financing • May: Filed $50M base
infrastructure to support shelf prospectus
rapid growth • Mar: Expanded
competitive moat by filing
provisional patentsInvestor Presentation • Comparables 18
Similar Companies
Currency Exchange Ticker Market Cap1 Revenue2 EV EV/Sales
Companies with M&A growth strategy and proprietary IP capabilities
WELL Health Technologies Corp. CAD TSX WELL $1,591.10 $50.24 $1,505.91 29.97
Converge CAD TSX CTS $1,619.18 $948.80 $1,693.58 1.78
Tribe Property Technologies Inc. CAD TSXV TRBE $65.31 $4.21 $74.33 17.64
Absolute Software Corporation USD TSX ABST $848.61 $104.67 $818.88 7.82
Quisitive USD TSXV QUIS $402.04 $49.76 $407.92 8.20
Average: 13.08
Public US cybersecurity companies
Palo Alto Networks USD NYSE PANW $ 34,412.09 $3,408.40 $ 34,538.19 10.13
Palantir Technologies Inc. USD NYSE PLTR $ 45,608.31 $1,092.67 $ 43,794.97 40.08
CrowdStrike Holdings Inc. USD NasdaqGS CRWD $ 48,580.90 $874.44 $ 47,400.32 54.21
Okta Inc. USD NasdaqGS OKTA $ 33,257.63 $835.42 $ 34,589.09 41.40
Zscaler Inc. USD NasdaqGS ZS $ 26,664.52 $431.27 $ 27,384.28 63.50
Average: 41.86
Plurilock Security Inc2 CAD TSXV PLUR $30.37 $35.58 $28.67 0.81
1. All numbers in millions; Most recent FYE figures were used
2. FYE 2020 12-month revenues for Plurilock and Aurora were combinedInvestor Presentation • Investment Highlights 19
Why Plurilock
$1 Trillion Cybersecurity Opportunity
Tech company in a large and growing market
Acquisition Oriented
Stated growth plan to acquire synergistic
cybersecurity companies with cross selling potential
Tier 1 Customers
Demonstrated track record of execution including
contracts in Defense, Finance and Life Sciences
Patented Artificial Intelligence Software
Continuous, invisible, and non-interruptive
high margin cybersecurity software
World Class Leadership
Team, board, and advisors include talent from
the NSA and Goldman SachsSign up for investor updates
plurilock.com
Contact
Ian L. Paterson Roland Sartorius Prit Singh
CEO CFO Investor Relations
ian@plurilock.com roland.sartorius@plurilock.com (Thesis Capital)
1.212.780.3255 prit.singh@plurilock.com
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