roth investment conference - imageware systems inc. · very difficult to counterfeit multiple...
TRANSCRIPT
2 OTCQB: IWSY
Statements in this presentation that relate to ImageWare's future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934 (“1934 Act”). Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Those factors could include the absence of available or sufficient capital to execute the Company’s business plan and changes in economic or other conditions that may change demand for the Company's products and services and other factors. This presentation is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this presentation out of context. ImageWare does not intend to update these forward-looking statements prior to any announcement of quarterly or annual results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. Statements in this presentation should also be considered together with the discussion of risks and uncertainties set forth in ImageWare’s annual report on Form 10-K filed on March 15, 2016 and on Form 10-Q filed on November 14, 2016 with the Securities and Exchange Commission (“SEC”) and its other reports filed with the SEC under the 1934 Act. ImageWare uses paid services of investor relations organizations to promote the Company to the investment community. Investments in any company should be considered highly speculative and prior to acquisition, should be thoroughly researched.
The content of this presentation is © 2016 – 2017 ImageWare Systems, Inc.
Forward-Looking Statements
4 OTCQB: IWSY
An identity is stolen every 3 seconds¹
Tax identity theft has increased by 700% in the last 3 years²
Over 80% of organizations are victims of fraud³
In 2016, identity fraud cost the U.S. $16 billion and affected 15 million people, up 16%⁴
The Need
Advances in Technology Make our Life Easier, but More Vulnerable Than Ever Before….
1) Digital Journal 2) IRS 3) Annual revenues over $1 billion. SANS Institute 2013, ITAC, 2012 4) Javelin Strategy & Research 2017 Identity Fraud Study -
https://www.javelinstrategy.com/press-release/identity-fraud-hits-record-high-154-million-us-victims-2016-16-percent-according-new
5 OTCQB:IWSY
T A R G E T E X P E R I A N
40M credit/debit cards stolen
15M people’s data exposed
S O N Y
Emails exposed, Sr. Management
ousted
E X C E L L A S B L U E C R O S S
Stolen identities, financial & clinical
records
76M households 7M small
businesses compromised
J P M O R G A N C H A S E
“It takes 20 years to build a reputation and five minutes to ruin
it.” – Warren Buffet
The Need
6 OTCQB: IWSY
67% of data breaches are the result of stolen
passwords
$118 per user, per year is total
cost of password resets
Genuinely secure
passwords are difficult to remember
413 BC: first password ever
used by the Greek army was stolen by their
enemy 2015 Verizon Data Breach Investigations Report https://www.infotech.com/research/quick-reductions-in-
help-desk-costs-with-password-reset
THE PROBLEM IS PASSWORDS They are unsecure, expensive and hard to use.
The Need T h e C h a l l e n g e o f U s i n g C o m p l e x P a s s w o r d s a n d V a r i o u s K i n d s o f T o k e n s i n M o b i l e U s e C a s e s i s D r i v i n g t h e Ad o p t i o n o f M o b i l e B i o m e t r i c Au t h e n t i c a t i o n
8 OTCQB: IWSY
Very difficult to counterfeit multiple biometrics
M-MB overcomes data input challenges versus a single biometric
IWS’ Biometric Engine® offers M-MB flexibility to foster positive consumer experience and provides massive scale and unlimited biometric choices
M-MB efficacy enables greater population penetration
M-MB has limitless applications: government, law enforcement, border security, travel, healthcare, commercial, financial & consumer/retail
The Answer
Multi-Modal Biometric (M-MB) Identification
10 OTCQB: IWSY
Biometrics is expected to be a $34 billion industry by 20201
65% of all mobile transactions will be biometrically authenticated by 20202
There has been a convergence of smart mobile devices, cloud adoption, & biometric acceptance
Our SaaS model is designed to generate recurring revenues based on usage & service contracts while offering customers pay as you go and ease of deployment
Partnerships with Fujitsu, SAP, Aruba Networks – a Hewlett Packard Enterprise Company, CA Technologies, Lockheed Martin, CDW, Verizon, & others helps us to aggressively pursue new customers in the market
Industry analysts have verified the substantial market for multi-modal biometrics and we have spent the past three years strategically positioning ourselves to capitalize on the coming wave of growth
The Opportunity
Rapidly Growing Industry
1) Acuity Market Intelligence, www.acuity-mi.com 2) Acuity Market Intelligence, www.prnewswire.com/acuity
11 OTCQB:IWSY
ImageWare is a pure play on large scale, multi-modal biometrics adoption
Only IWS has the patents & platform to affordably & easily manage massive amounts of data required for multiple modalities – All on a pay-as-you-go, scale-as-you-need basis
We are pioneers & an established innovator in biometrics for over 15 years, with a strong installed client-base such as:
U.S. Department of Veteran Affairs
LAX – Los Angeles World Airports
Arizona Department of Public Safety
Canadian TSA
Established companies, such as Fujitsu, Lockheed Martin, Aruba – a Hewlett Packard Enterprise Company, SAP, & CA Technologies, have selected IWS to be their biometric partner as this technology finds traction
Our government experience, delivering 24/7 best-of-breed, fully compliant biometric solutions, will drive the standards for commercial & consumer adoption
So Why ImageWare?
12 OTCQB: IWSY
U.S. Patents
• US7298873 • US7362884 • US7596246 • US7606396 • US7949156 • US7321920 • US7340503
International Patents
• China ZL 200680008481.4 • Australia AU 2005307863 • Australia AU 2006336252 • Europe EP1606963 • Canada CA2588078 • Canada CA2630711
IWS is the IP Leader in Multi-Modal Biometrics Early pioneer: first to file related patent (Nov. ’04) Most patents: 20 worldwide, 14 pending
Our Patents are Around: Interactive Messaging System Multimodal Biometric Platform Multimodal Biometric Analysis Biometric Remediation of Datasets Anonymous Biometric Verification Multimodal Biometric Database Searching Methods Anonymous Biometric Identification Anonymous Biometric Enrollment Systems and Methods for Biometric Data Management Using
Relational Database Management Systems (RDBMS)
Patent leadership provides valuable underlying assets, a sustainable competitive advantage, & barriers to entry
Leading Foundational IP in Multi-Modal Biometrics
• US7353258 • US8117287 • US8887259 • US9262613 • US9268904 • US9286528 • US9418214
13 OTCQB: IWSY
Multi-Modal Biometric Authentication via Mobile Devices, in the Cloud, or On-Premise
1. Identifies the person not the device
2. Multi-layer protection of individual user’s biometric data
3. Fast, accurate, and anonymous authentication
1. Operates at the speed of business
2. Scales to hundreds of millions of identities within seconds
3. Cloud-based matching, register once, use anywhere
1. Supports any kind of biometric, single or multiple
2. High-assurance multi-biometric fusion
3. Broad applicability for nearly any use case
Secure (Personal, Accurate,
Anonymous)
Scalable (Speed, Population,
Device)
Adaptable (Multi-Biometric, Fusion, In
Band and Out-of-Band Authentication)
We hold 20 patents world wide : http://iwsinc.com/resources/intellectual-property/
Not All Biometric Solutions Are Equal
14 OTCQB: IWSY
Smart Products for Enterprises & Consumers
Mobile application software providing out-of-band verification using a mobile device
Enterprise-ready, end-to-end, turnkey, multi-factor biometric, vendor agnostic solution
No upfront cost/Pay-as-you-go, Software as a Service solution
14
Biometric authentication for all stakeholders in all circumstances, connected or disconnected
Adapts quickly to new biometric technologies; Installs in minutes, configure, manage, and use
Financed as OPEX rather than CAPEX. No upfront cost, Sold as a service
Frost & Sullivan 2017 New Product Innovation Award
15 OTCQB: IWSY
Verify Your
Identity
Take a selfie Speak a phrase Fingerprint Success
1. Request Access
2. Choose Authentication Method(s) on Mobile Device
Or
3. Results –Granted or Denied Access
Out-of-Band Authentication Request
Here’s How it Works
Sign In With GoVerifyID Airport Wi-Fi
Violet Le [email protected]
Access Granted!
Violet Le
ClearPass and ImageWare Workflow
15
16 OTCQB: IWSY
Our Unique Value Proposition
The Competition
Software technology platform focuses on data & data management
Multi-modal solutions allow virtually any hardware or any biometric algorithm, now or in the future
Open plug-n-play flexibility is “Future Proof” yet integrates into a scalable end-to-end solution with little or no coding
IP leader in multi-modal biometrics
Sold as a Service, pay-as-you-go, scale-as-you-need
Identity management driven by hardware-based or “Middleware Solutions”
Package hardware “Capture” devices with proprietary software
Protection = data enrolled in proprietary format
Closed-end systems
Difficult and expensive to replace
Each new change requires integration and additional costs
VS.
17 OTCQB: IWSY
Multi-modal biometric identity management is NOW moving from government to commercial & consumer markets
Society’s increasing mobility is a key driver Smart devices equipped with tools (i.e. cameras, voice
recognition, fingerprint ) can easily enroll multiple biometrics
Mobile security is absolute requirement Smart device is bridge from human identity to digital identity Provides third factor of authentication for cloud and mobile
computing (what you know, what you have and WHO YOU ARE)
Security & ease of use for Internet of Things
The Future of Multi-Modal Biometrics
18 OTCQB: IWSY
Foundational patents provide the sustainable competitive advantage
Increasing mobility has created the need for sensitive data and networks to be secured
Leverage successful government product suite towards commercial & consumer markets (i.e. mobile) & cloud security (i.e. Fujitsu, SAP, CDW, & CA Technologies)
Unpredictable government revenue model transforming to predictable, recurring revenues (license and/or transaction) as private sector traction occurs
Scalable software license model with +70% gross margins, evolving to mobile & cloud SaaS offerings
ImageWare Key Takeaways
19 OTCQB: IWSY
ImageWare Contact Information
ImageWare Systems, Inc. 10815 Rancho Bernardo Rd., Suite 310
San Diego, CA 92127 Tel (858) 673-8600
Company Contact Wayne Wetherell, CFO
Investor Relations Liolios Group, Inc.
Cody Slach Tel (949) 574-3860 [email protected]
20 OTCQB: IWSY
Key Stats (OTCQB: IWSY)
Trading Data (@ March 7, 2017)
Stock Price $1.11
52 Week Low/High $0.95/$1.52
Avg. Daily Vol. (3 month) 71,041
Shares Outstanding 94.8M
Public Float, est. 52%
Institutional Holdings, est. 2%
Insider Holdings, est. 48%
Market Cap $105.2M
Enterprise Value $105.5M
Year Founded 1987
Number of Employees 67
Financial Highlights (@ September 30, 2016)
Total Revenue (ttm) $3.8M
Cash & Equivalents (mrq) $1.7M
Total Assets (mrq) $5.9M
Total Debt (mrq) $2.0M
Total Liabilities (mrq) $6.1M
Total Equity (mrq) $(0.2)M
Source: Capital IQ.