Itex Corp. · OTC:ITEX
Itex — Investor Presentation (October 2009)
33 slides from Itex's investor presentation, Oct 19, 2009
Slide 1: The ITEX Opportunity
(ITEX) The ITEX Opportunity Presented October 19, 2009 By Steven White, Chairman and CEO
Slide 2: Safe Harbor
Safe Harbor During the course of this presentation, we may make projections or other forward looking statements regarding future events or the future financial performance of ITEX. Such statements are only predictions and actual events or results may differ materially. We refer you to ITEX's filings
Slide 3: About ITEX
About ITEX Symbol Recent Price Range 52 Weeks Shares Outstanding Market Cap Long Term Debt nstitutional Ownership nsider Ownership Fiscal Year Revenue - FY/2009 Cash flow — operations FY/2009 ITEX.OB $0.75 $0.35- $.79 18.0M $13.5M ~20% ~17% July 31 $16.5M $2.875M ITEX) 3
Slide 4: Cashless Exchange Industry
Cashless Exchange Industry $1.4B transaction value via local exchanges 250 exchanges ° Fragmented industry * 200,000 member companies IRS codifies tax treatment in 1982 under 1099B rules *Source — ITEX estimates
Slide 5: ITEX Overview
ITEX Overview + Largest membership B-2-B Trading Community in the United States and Canada e 24,000 Registered Members © Customer service outsourced via Franchised Broker Network * Enables members to attract new customers and generate incremental sales * Members buy and sell within the community uti
Slide 6: Craigslist Barter Section
Craigslist Barter Section Wed Oct 14 12 chocolate on chocolate cupcakes in antioch - (pittsburg / antioch) Need keys for vour Car, House. office ect - Az Cabinet Maker/Remodel/Repair/New/Vanity Master - $1 - (santa rosa) Kettle One Citroen - (mission district) pic machanic for ford wagon - (san mate
Slide 7: Craigslist barter listing
Craigslist barter listing * Canon 40D, like new + 2GB compact flash (Renton) Reply to: sale-970341446 @craigslist.org 2 Date: 2009-10-14, 1:02PM PST I'd like to trade my year and a half old Canon 40D body. Like new condition. Always kept in a Crumpler bag, no scratches, etc. Includes box, manuals, b
Slide 8: Marketplace Listing
Marketplace Listing a 2 _ =
Slide 9: Marketplace Detail
Marketplace Detail
Slide 10: ITEX Member Benefits
ITEX Member Benefits Obtain new customers Utilize unique sales channel Cash conservation by purchasing with ITEX dollars Monetize unproductive assets, excess capacity and inventory Broker Network for transaction support Customer loyalty and retention (TEX 10
Slide 11: ITEX Community in Action
ITEX Community in Action Spending ITEX dollars Resort Hotel Hires contractors to expand ‘and upgrade their faces, Media commodations and business vm a pine ¥ General Contractor Trades for dental services for staff and purchases direct mail advertising, Florist Launches an ad campaign to jump-start c
Slide 12: Client Example - Seattle Dentist
Client Example - Seattle Dentist Accepted ITEX $ from: * CPA * Contractor * Advertiser + Moving Company Total Sales: Total Purchases: Total Cash Fees: $47,367 $41,559 § 6,289 Paid ITEX $ for: * Printing * Auto detail * Flowers + Accommodations Avg Transactions: 22 Avg Volume: $9,814 Avg Client: 6 ye
Slide 13: ITEX Competitive Advantages
ITEX Competitive Advantages * Membership critical mass * Customer service capability * Products / services depth and diversity * Brand recognition and currency liquidity ° Web based trading platform ° Established Infrastructure (TEX 13
Slide 14: Uke inks Patera) Cato
Uke inks Patera) Cato ‘lee |e|o|. ambcrea- capone om) FTES Payment sts a. | Buy fe With ITEX aire in praesent Glee RN ett TEX CHECK mn ren) a= 22 Taos 97.00 cancel, Prog, Bay ita TEAL
Slide 15: ‘Beata va20ase-0
‘Beata va20ase-0 Yisausmess onve SageePSs Beak timer Sea Sew ae nero SURES OPE on He coreorten jt eclad, Wwag at ay Sacra cast UE [$746.00] oaneonanes siorerte) | Gonna saanee siaerets Purchases: $ 2,010.00 ‘Authorized Purchases: 8 0.00 Cee Senos: Si3tres2| | fieeSotae armas Srear78e (eee a] one =o
Slide 16: Member Products & Services
Member Products & Services » Accommodation & Travel ° Advertising & Media* * Business Products/Services* * Contractors * Entertainment* * Printing * Magazines & Newspapers * Health and Fitness* * Collectibles * Auto Repair Services *Top Five Categories by $ volume transacted Retail — gifts, florists
Slide 17: Brand Name Partners
Brand Name Partners ITEX Payroll Services — Provided by ADP Small Business Services ITEX Job Listings — Powered by Simply Hired ITEX Co-branded MasterCard ~ 60 days interest free terms National Partnership — Sysco iCare - Leverage Sysco’s customer base — Idearc Media Media Services — Business Week —
Slide 18: ITEX Strategic Objectives
ITEX Strategic Objectives * Establish the ITEX trading platform as the standard for B to B cashless transactions * Market penetration into the 25 million small businesses in the United States* * Brand recognition of ITEX dollars * Enhance, create and manage business rules of the trading community *
Slide 19: ITEX Growth Opportunities
ITEX Growth Opportunities ° Organic Growth —Increase transaction volume through registration growth Supplement primary franchise system with online marketplace * National Business Partnerships —Sysco iCare * Media Services —Launched August 2008 * Licensing —ITEX SaaS Platform —Idearc Media’s Super T
Slide 20: Software as a Service (SaaS)
Software as a Service (SaaS) * Scalable platform technology —CRM —Payment processing —Record keeping Billing functionality —Reports * Track digital currency; with any value * Calculates transaction or subscription fees in USD ° Windows web-based platform * Co-location & backup data facility * First
Slide 21: ITEX Key Metrics
ITEX Key Metrics* * Goods & Services Value (GMV) $132 million ¢ Number of transactions ° Avg transaction amount * Listings on itex.com ° Visits ° Page views * New members Last Twelve Months 296,496 $446 27,000+ 802,527 7,992,060 4,503
Slide 22: Testimonials
Testimonials "ITEX has helped me connect with the exact customers we want -from Florida to California - that we wouldn't have had any other way. ITEX has also helped us pay for real business expenses with ITEX dollars instead of cash." - Nick Owner of a commercial printing business "Not only have we
Slide 23: Partners Small Business Services
PARTNERS 432 small Business Services CFO Magazine
Slide 24: novative way to
novative way to Survive and prosper. Founder, Restaurant.com With the curent economic uncertainty, your business can use barter to attract new customers ‘and retain current ones. Relationshipsare created between members with a sense of community tahelp each other succeed. /TEX ~ America’ largest bar
Slide 25: (TEX)
(TEX) CONNECT « TRADE « SAVE 1.800.277.9722 woviudtex.com/efo + ceoaitex.com ~ products and services to * control costs “With the current economic uncertainty, my business uses barter to attract new receiving value for our excess capacity and inventory America’s largest trading community, with more
Slide 26: ITEX Internet Advertising
ITEX INTERNET ADVERTISING CONNECT - TRADE SAVE fartering helps Business ‘Access over 24.000 trade partners Sartering helps your business grow. Sewwitexcom fewer com TEX. Barter Reinvents EX trade intotigernty ‘The Membership nding Community Aecest aver 34,000 trading partners Connect Trade, Save ‘nn
Slide 27: Revenue
Revenue Fiscal 2005-2009 (Sin millions) $18.0 7 $16.5 $16.0 $15.0 4 $14.2 $120 4 $10.2 $9.0 4 $6.0 4 $3.0 4 = r 2008 2005 2006
Slide 28: ITEX Revenue Mix
ITEX Revenue Mix * Transaction fees: 67% * Subscription fee: 28% * Other fees: 5% * Cost of Goods —ITEX retains 25% of transaction fee, balance to Broker —ITEX retains 65% of subscription fee, balance to Broker * Transaction fee: 5% to 7.5% (assessed to buyer and seller) * Subscription fee: $20 per
Slide 29: Income From Operations
Income From Operations Fiscal 2005-2009 (Sin millions) $15 - - $1.34 $10 4 $0.73 $0.5 - s 7 T 2005 2006 2007 2008
Slide 30: Cash Flow From Operations
Cash Flow From Operations ($ in millions) Fiscal 2005-2009 $3.0 5 $25 4 $2.0 4 $18 $15 . a S - 7 we @ o L wo 3 0
Slide 31: Balance Sheet 7/31/2009
Balance Sheet 7/31/2009 Assets: Cash & ST Investments $ 2,557,000 Accounts receivable, net 895,000 Tax asset 6,537,000 Goodwill 3,318,000 Notes receivable (office sales) 866,000 Other assets & equip. 2,488,000 Total assets $16,661,000 Liabilities & Shareholder Equity: Broker commissions $ 1,519,000
Slide 32: Management Team
Management Team Years in Name Title Prior Experience Industry Steven White Chairman/CEO/CFO Ubarter.com, 26 Network Commerce Robert Benson VP Operations Ubarter.com, 17 Network Commerce Brian Argetsinger VP Marketplace ITEX Franchisee ag Douglas Dagenais National Sales Chicago Barter 24 Shell Vacati
Slide 33: Reasons to Invest
Reasons to Invest Industry leader with attractive growth potential Strong cash flow *Scalable business model *Proprietary SaaS technology *Unique distribution channel and community eIntrinsic value of membership network