alexander sappok, ph.d. cto raysecur inc...•unit bookings growth 38 units in 2019 to 750 units in...

RaySecur, Inc. © 2019 – Confidential 1

ConfidentialPrepared: 05/02/2019

Alexander Sappok, Ph.D.CTO RaySecur Inc.

Phone: 844-729-7328Email: [email protected]


Mail Threats Received 10 Times / Day

Affect Major Corporations Every Day

Letters Sent with White Powder…

Hoaxes Shut Down Facilities

Real Threats Result in Hospitalizations and Death

PROBLEM


Plug-and-Play Mail Security Solution

Mail Security Made Easy…

MailSecurTM desktop terahertz (THz) scanner and AI detection platform

MailTech on DemandTM

real-time expert remote support

Differentiated customer value proposition

1. Performance: 320X more sensitive than X-ray for powders & liquids

2. Simplicity: 3D real-time imaging

3. Safety: non-ionizing mmWaves

4. Intuitive: hold and move objects by hand in the viewing area

5. Compact: desktop setup, no special requirements

6. Peace of Mind: expert support 24/7


Proprietary Tech. Delivers Peace of Mind

• US Patent 15/388,956 (12/2018)

• Exclusive license to INO terahertz imaging IP ($20 MM in R&D)

Patented mmWave 3D imaging technology to “see inside” mail

Developed with INO and used by

the European Space Agency

National Optics Institute (INO)

• World-leading photonics research center in Quebec, Canada

• 230 PhDs, 33 spin-out companies

• Provides contract manufacturing for RaySecur products

Terahertz mmWaves used in 3D scanning at airports today

Differentiated Approach

• Low-power requirements

• Focus on low-cost designs


o Launched HaaS Model 4Q 2018

o Current LTV / COCA ~ 2.66

o Projected LTV / COCA ~ 12

HaaS Business Model

MailSecur Scanner

AI Detection Platform

Mail-Tech-On-Demand

Delivering a complete service-based solution…

Subscription Services

• AI-powered threat detection

• Concierge expert support service

Pricing Structure

1. Setup Fee: $10,000

2. Monthly Subscription Fee

o $2,528 for 36 monthso $1,996 for 48 monthso $1,769 for 60 months

Initial Traction & Key Metrics

•3rd Party Vendor Financing

•Upfront Lump Sum


Public Safety

Public Health

Job Creation

Social Impact Strategy

Lethal Doses of Common Opioids

www.washingtonpost.com

• Opioids commonly sent in the mail

• MailSecurTM is the only technology capable of detecting trace amounts of powders in mail

Opioid Crisis50,000 deaths in 2017

Our remote EOD Mail Technicians are recruited from our partnership with EOD Wounded Warrior Foundation

Comprehensive Mail Threat DetectionPreventing 3,500 Threats per Year

• Chemical

• Biological

• Radiological

• Explosives

• Weapons


Go to Market Plan

Serviceable Available Market [$M] Private Sector Lighthouse Customers

Government-Related Lighthouse Customers

High Net Worth Individuals

Ability to Pay

Need to Scan Mail –CSO or Similar Function

Multiple Activations or High NPS

39K High Risk Mailrooms x $2K / mo = $1.3B / yr Opportunity (SAM)TAM = 2.7M locations need mail screening according to US. Dept. of Homeland Security identified at-risk sectors


Competitive Analysis

Safety and Ease of Use

Det

ect

ion

Cap

abili

tie

s

Static 2D

Inte

ract

ive

3D

Ionizing Radiation

Criteria Terahertz Imaging X-Ray Scanner

Imaging

Capabilities

• 3-D dynamic imaging

• Interactive, real-time

• 2-D imaging

• Static

Detection

Capabilities

• Powders

• Liquids

• Explosives

•Dangerous Items

• Explosives

•Dangerous Items

Safety•Non-ionizing, safe for

user

• Ionizing radiation, radiation

program and licensing

needed

Size •Desktop• Large, free-standing

•Over 350 lbs

Cost• $10K Setup

• $2.5K / Mo.• $55K+ avg. for base models

Training • Plug and Play • Extensive training


Team

Eric Giroux MA, CEO• Serial entrepreneur and INO

entrepreneur in residence• Previously founded $10M family

business

Alex Sappok PhD, CTO• MIT mechanical engineering• Previously founder and CEO of FST,

MIT-spin out acquired by NYSE: CTS

William Plummer, MA• Director – Senior Threat Analyst• Masters in National Security and

Irregular Warfare; Counter IED Devices - BombTech

Nancy Elkas BBA, CXE• Experienced corporate trainer and

risk management at Fortune 500 companies

• BBA Bishop’s University

Nick Nagel, PhD• Head of Software and AI• PhD Cognitive Science

Volodymyr Kyrytsya, PhD• Lead THz Scientist• Photonics and Spectroscopy

Supported by experienced industry and security advisory board.


Financial Projections

20222021202020192018

$1.1 M$2.4 M

$4.9 M

$12.8 M

$24.8 M

Subscription

Hardware

Rev

enu

e

Key Assumptions and Notes to Projections

• Transition to subscription-based model in 2019 ($1.1M booked to date)

• Expect some customers to continue to purchase hardware up-front

• Unit bookings growth 38 units in 2019 to 750 units in 2022

• Model does not include higher performance 515 GHz system sales

• Sensitivity analysis for transition plan from system sales to HaaS models in process

Gross Margin Growth: • 41% (2018) • 78% (2022)

2022 EBITDA: • $8.9M (36%)


Operating Plan

20222021202020192018

Bu

sin

ess

Pro

du

ctFu

nd

ing $500K

Convertible Note

Launch MailTech Service

Version 2.0 Scale HaaSVersion 1.0 Sales

Cost-Reduced v1.5Version 1.0 Mfg. by INO

Version 1.5 Value Engineering

Version 2.0 Low-Cost Source & Detector Dev.

Scale Mfg.

Low-Cost v2.0

Phase In Machine Learning

Traditional credit line to support production

Low-Cost Source

Launch HaaS

$1M+ NSF, DOD, SBIR

$3M Series A

$0.9M Univ. R&D

Leverage INO Partnership

• R&D for low cost detector

• Contract manufacture up to 250 units per year

Design to Scale

• RaySecur R&D for low cost sources with Univ. Sherbrooke

• Third-party manufacturer

Funding Plan

• $3M Series A

• $1.9M Government Grants

Use of Funds

• Value engineering, develop low cost v 2.0 hardware

• Build out AI platform

• Scale manufacturing & sales


APPENDIX


DHS Designation

RaySecur received DHS designation in 2018


SAFETY ACT: Liability Limits

Liability protection for seller

Liability protection for buyer and seller


Letters and Small Packages

• No chain of custody

• No bill of lading

• Can be placed in any mailbox

Small Packages at Risk


Mailroom Security Standards: UK PAS 97-2015

https://www.cpni.gov.uk/system/files/documents/3f/b7/Introduction-to-PAS-97-2015.pdf


Mailroom Security Standards: United States

https://www.dhs.gov/sites/default/files/publications/isc-mail-handling-screening-nonfouo-sept-2012-508.pdf

alexander sappok, ph.d. cto raysecur inc...•unit bookings growth 38 units in 2019 to 750 units in...

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