Slide 1: Virtual Currency Systems, an ITEX Corporation subsidiary
Virtual Currency Systems an ITEX Corporation subsidiary (OTCQB: ITEX) By Steven White, CEO March 12, 2014
Slide 2: Forward-Looking Statements and Solicitation Materials
Forward - Looking Statements and Solicitation Materials ITEX Corporation urges caution in considering its current trends and any outlook on earnings disclosed in this communication. In addition, certain matters discussed may constitute forward - looking statements. These forward - looking statements
Slide 3: Bitcoin – the Virtual Grand Daddy
Bitcoin – the Virtual Grand Daddy • Created by “Satoshi Nakamoto” in 2009 • Peer - to - peer transactions • No central bank or clearing house • No financial regulator, not tied to any currency • Bitcoins are stored and sent through e - wallets • Exchanged or converted through online virtual currency
Slide 4: Why Virtual Currencies?
Why Virtual Currencies? • Low cost alternative to credit cards • Solution appealing to users without bank accounts or credit cards • New generation of consumers like alternatives • Loyalty to a cause or brand • Distrust in governments
Slide 5: Centralized Vs. Decentralized
Centralized Vs. Decentralized
Slide 6: Top Virtual Currencies
Top 5 Virtual Currencies* Name Value in circulation** 1. Bitcoin $8 b 2. Ripple $1.5b 3. Auroracoin $650m 4. LiteCoin $375m 5. Peercoin $ 70m *Source: coinmarketcap.com ** As of 3/3/14
Slide 7: Centralized Virtual Currencies
Centralized Virtual Currencies • Organization determines amount in circulation • Governments • Air miles, hotel and rental car rewards • AMZN coins, Zynga coins, Linden dollars • Barter systems • VCS supports a centralized model
Slide 8: ITEX - a Centralized Virtual Currency
ITEX - a Centralized Virtual Currency • Largest B2B Trading Community in USA & Canada* • 20,000+ merchants • Customer service provided by franchised network • Enable members to attract new customers and generate incremental sales • Members buy and sell within the Trading Community utilizing virtual
Slide 9: Virtual Currency Systems (VCS)
Virtual Currency Systems (VCS) • Scalable platform technology • Customer Relationship Management • Record keeping • Billing functionality (electronic and USPO) • Reporting dashboard • Transaction processing • Calculates transaction, subscription & other fees • Hosted in Cloud
Slide 10: Cloud Computing Began 2007
Cloud Computing Began 2007 Code
Slide 11: VCS Software Advantages
VCS Software Advantages • Cloud hosted trading platform • Ability to determine marketing model • Decades of user experience • Users are identifiable • 1099 reporting functionality • Option to convert virtual currency to cash • Immediate launch capability
Slide 12: About ITEX
About ITEX Symbol ITEX Recent Price $4.50 52 Week Range $3.40 - $5.10 Shares Outstanding 2.9 M Market Capitalization $13 M Insider Ownership 23% Revenue – 2013* $14.8M Cash Flow From Operations - 2013 $ 1.75M Dividend** (annualized) $580,000 *Fiscal Year End: July 31 **.05 per share quarterly
Slide 13: Balance Sheet 1/31/2014
Balance Sheet 1/31/2014 Assets: Cash & ST Investments $ 3,394,000 Accounts receivable, net 924,000 Tax asset 4,191,000 Goodwill 3,191,000 Notes receivable (franchisees) 1,602,000 Other assets & equip. 399,000 Total Assets $13,701,000 Liabilities & Shareholder Equity: Accounts Payable $ 60,000 Commis
Slide 14: Re-cap
Re - cap • Virtual Currencies are next great innovation • Cloud platform technology • Low overhead model • Easily scalable • Quick to market is key • Micro - virtual economies will proliferate • Huge adoption potential
Slide 15: Selected Quotations
Selected Quotations • “Virtual currencies may hold long term value” Ben Bernanke, former Federal Reserve Chairman • “I think the Internet is going to be one of the major forces reducing the role of government. The one thing that’s missing, but will soon be developed is a reliable e - cash.” Milton F
Slide 16: Thank You
Thank You Virtual Currency Systems www.currsys.com 425.463.4001 or steve@currsys.com