High Wire Networks Inc · OTC:HWNI
High Wire Networks — Investor Presentation (March 2023)
35 slides from High Wire Networks's investor presentation, March 2023
Slide 1: Corporate Presentation March 2023
OTCQB: HWNI TECHNOLOG Y + EXPERTS + IN NOVATIO N MANGAGE D IT & CYBERSECUR ITY TO GET WORK DONE Corporate Presentation March 2023
Slide 2: Disclaimers & Cautions Regarding Forward-Looking Statements
Disclaimers & Cautions Regarding Forward-Looking Statements OTCQB: HWNI This presentation contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "antici
Slide 3: Key Stats (OTCQB: HWNI)
Key Stats (OTCQB: HWNI) OTCQB: HWNI Financials below include results from Discontinued Operations. Divesture was announced March 8, 2023. Stock Price 3/16/23 $0.11 Revenue, ttm @ 9/30/22 $51.4M Revenue Pro-Forma - Continuing Operations 4 Avg. Volume 3 mo. 209,166 Revenue, mrq @ 9/30/22 $13.5M Growth
Slide 4: Who We Are
Who We Are OTCQB: HWNI • Fast-growing, award-winning global provider of managed cybersecurity and IT enablement services. • Rapidly expanding managed cybersecurity business generating high-margin recurring revenue—up 430%+ over past 12 months. • B2B2B Business Model — 100% Driven by Channel Partners
Slide 5: High-Profile Channel Partners
High-Profile Channel Partners OTCQB: HWNI Our growth is 100% driven by our expanding network of 600+ channel partners: • Managed service providers (MSPs) • IT firms • Telcos • Hardware/software manufacturers • Global systems integrators • Value added resellers and distributors • Strategic consulting
Slide 6: Marque End-Customer Base
Marque End-Customer Base OTCQB: HWNI Through our channel partners, we serve industry-leading corporations and large government agencies. In the commercial space, we serve tens of thousands of companies across multiple industries: • 100s of Fortune 500 companies, many Fortune 50: 10s of Thousands ~1,
Slide 7: We Address High-Growth Global Markets
We Address High-Growth Global Markets OTCQB: HWNI • Cyber Security Market: $376 billion by 2029 @ 13.4% CAGR • IT Services Market (professional & managed IT Global Cyber Security Market Global IT Services Market services): $2.6T by 2030 @ 5.8% CAGR USD Billions1 USD Trillions2 • Key market growth dr
Slide 8: Cyber Attack #1 Business Risk
Cyber Attack #1 Business Risk OTCQB: HWNI Reported Adverse Business Events in 2022 Cyber Incidents 44% Business Interruption 42% 83% of organizations had more than one data breach. Natural Catastrophes 25% Pandemic Outbreak 22% 79% of critical Changes in Legislation & Regulation 19% infrastructure o
Slide 9: Multiple Major Data Breaches Over Just Last 6 Months
Multiple Major Data Breaches Over Just Last 6 Months OTCQB: HWNI Sept 7, 2022 Jan 5, 2023 Aug 10, 2022 Sept 2, 2022 North Face: 200,000 Dec 20, 2022 T-Mobile: a second major Cisco: Yanluowang Samsung: data breach account purchase histories, PayPal: unauthorized data breach in two years ransomware ga
Slide 10: The High Cost of Data Breaches
The High Cost of Data Breaches ® OTCQB: HWNI $4.4M $9.4M 60% Global average cost U.S. average cost of a of breaches led to per business of a data business data breach. increased prices passed breach, up 2.6% y/y. on to customers. 113% higher vs. global. Highest cost globally 12th year in a row. Howe
Slide 11: Daunting IT Issues & Cybersecurity Challenges
Daunting IT Issues & Cybersecurity Challenges OTCQB: HWNI • Increasing cost of data breaches, up 13% since 2020. • Shortage of skilled & trained personnel. Cost of Data Breach Rising • Impact of COVID-19 created expansive remote workforces Average Per Businesses Affected Globally - USD $Millions tha
Slide 12: We Solve these Problems with a Full Range of Cybersecurity, IT and Related Services
We Solve these Problems with a Full Range of Cybersecurity, IT and Related Services OTCQB: HWNI Overwatch Managed Managed Security Managed Network Global Command Cybersecurity Operations Center Operations Center Center Services (SOC) Services (NOC) Services Cybersecurity Partner Data Center Networki
Slide 13: Global Presence
Global Presence OTCQB: HWNI • Presence across 180+ countries: • Four U.S. offices. • International regional offices in Puerto Rico CHICAGO UNITED HQ KINGDOM and UK. 24/7 NOC & SOC OFFICES • 24/7/365 Network Operations Center (NOC) & Security Operations Center (SOC): NEW JERSEY • 100% U.S.-based DALL
Slide 14: Our DNA
Our DNA OTCQB: HWNI • For 23+ years, we have been a trusted partner to VARs, Our Value Stack MSPs, Distributors, Integrators, Manufacturers and Telecoms worldwide. Industry’s Best & Largest Clients • We offer scale, expertise and global presence. • 125 employees globally. 100% Channel Sales via Worl
Slide 15: Award-Winning Overwatch Cybersecurity Solution
Award-Winning Overwatch Cybersecurity Solution OTCQB: HWNI Overwatch Cybersecurity Dashboard MSPs and MSSPs turn to Overwatch for its Managed Everything (X) Detection and Response (MXDR) solution • Block cyberthreats from reaching critical systems and data with Zero-Trust Secure-Access Service Edge
Slide 16: Our Proprietary SOAR Platform
Our Proprietary SOAR Platform OTCQB: HWNI How it Works: • SOAR is based on our object-oriented SOAR Software Development Toolkit (SDK) that we have developed in-house. • SDK supports simple “drag & drop” of various pre-programed actions into a "playbook” of automated steps to take for a particular c
Slide 17: Overwatch Cybersecurity Ecosystem
Overwatch Cybersecurity Ecosystem OTCQB: HWNI Infinite Integration Possibilities Our Overwatch SOAR Automation Technology Creates Enhanced Visibility, Improved Correlation & Faster Remediation SOAR Consolidates alerts from all Threat Prevention and SOAR Detection & Response Security platforms. Orche
Slide 18: Overwatch Managed Cybersecurity Benefits
Overwatch Managed Cybersecurity Benefits OTCQB: HWNI No Overwatch Too Many Narrow Solutions Comprehensive Security 4,300+ point products don’t speak to each other and overlap We integrate the full value chain (Partner + Overwatch + Customer functionality, overwhelming internal IT support teams. Lega
Slide 19: Industry Awards Recognize the Quality & Value of Our Service Offerings
Industry Awards Recognize the Quality & Value of Our Service Offerings OTCQB: HWNI Americas Top 12 MSSP 2023 19
Slide 20: Competitive Landscape
Competitive Landscape Frost Radar™ OTCQB: HWNI Americas Managed & Professional Security Services Market • Across growth & innovation, High Wire Networks ranks in the Top 12 among 120+ competitors across the Americas, according to Front & Sullivan. • Competitors include professional service firms, te
Slide 21: Staffing Business Divestiture
Staffing Business Divestiture New Organizational Structure Post Divesture of Staffing Business • Sold legacy staffing subsidiary in $11.5 million transaction, Parent Company & Subsidiaries March 8 , 2023. • Multiple benefits: • Eliminated convertible debt • Canceled certain Series D preferred shares
Slide 22: Pro Forma Outlook
Pro Forma Outlook Pro-Forma Annual Revenue OTCQB: HWNI Post-Staffing Business Divestiture Continuing Operations 2022 Pro Forma Revenue (continuing operations): • ~$27.0M, up 27% from $21.3M in 2021 (estimates) 1 $43M - $47M • Primarily Cybersecurity & Technology Enablement revenue Revenue growth exp
Slide 23: Public Peer Comparative Valuation
Public Peer Comparative Valuation OTCQB: HWNI Enterprise Value to Sales (EV/S) Share Ticker Enterprise Sales Market Price EV/S Symbol Value ($) ttm ($) Cap ($) 3/10/23 Cerberus Managed cybersecurity & compliance. CISO $0.45 105M 38M 96M 2.8x Sentinel Cloud-delivered protection of endpoints, cloud wo
Slide 24: Capitalization Restructure Plan
Capitalization Restructure Plan Implemented Over Past Four Months Indicates step completed. OTCQB: OTCQB:HWNI HWNI Eliminated all senior debt positions held by Bank D and portion of note purchased by Bank C with proceeds from recent equity raise, Sold non-core legacy staffing business (Adex su
Slide 25: Post Re-cap Plan
Post Re-cap Plan OTCQB: HWNI • Properly capitalized business, generating income and positive cash flow. • Generate cash from operations to fund Overwatch growth and expand managed IT services. • Accelerate expansion of recurring revenue stream with the cash flow from the existing business • Expand m
Slide 26: Cybersecurity Insurance
Future Growth Driver Cybersecurity Insurance OTCQB: HWNI • We are preparing to offer a more affordable Cybersecurity insurance for our Channel Partners. • Available as part of a minimum stack of five manage service offerings that help ensure security. ® • Per our economy of scale, we can offer low p
Slide 27: Cybersecurity Insurance Market Opportunity
Cybersecurity Insurance Market Opportunity OTCQB: HWNI • Global cybersecurity insurance market growing at 19.6% to reach $20.2B by 2027. • Growth driven by: Global Cybersecurity • Growing number of sophisticated cyber-attacks amplifying fear of Insurance Market USD Billions1 financial loss. • Increa
Slide 28: Innovative New Customer Acquisition Strategy
Future Growth Driver Innovative New Customer Acquisition Strategy OTCQB: HWNI Our Customer Acquisition Approach Today Planned New Additional Acquisition Strategy Customer Contractual Channel Partner contracts High Wire to deliver IT & Cybersecurity High Wire acquires the channel partner’s client con
Slide 29: M&A and Transaction Opportunities
M&A and Transaction Opportunities OTCQB: HWNI Despite headwinds facing the broader Last Industry Peer Focus Most Recent Transaction economy, MSSP and IT Services M&A Valuation activity remained strong in 2022. Manages IT and real-time IT $23.4M Series D Round in Mar. 800+ M&A transactions closed in
Slide 30: Key Takeaways
Key Takeaways • Fast-growing, award-winning global provider of managed cyber security and IT enablement services. • Rapidly expanding, high-margin Overwatch managed cyber security business. • 50%+ recurring revenue from multi-year engagements. • Unique B2B2B business model speeds growth & market OTC
Slide 31: Contact Us
Contact Us Company Contact Mark Porter, CEO High Wire Networks Tel +1 (952) 974-4000 Email contact Investor Relations Ronald Both or Grant Stude CMA Investor Relations Tel +1 (949) 432-7557 HWNI@cma.team Media Relations Susanna Song, VP of Marketing & Communications High Wire Networks Main Office/HQ
Slide 32: Appendix
Appendix 32
Slide 33: Corporate Timeline
Corporate Timeline January 2023 Overwatch Security June 2021 Operations Center becomes 2017 Merger with Spectrum Global 100% US Operations. Ranked #1364 on Solutions (OTCQB:SGSI) 2014 Extensive investment in March 2023 Inc. 5000 Fastest High Wire Sold Subsidiaries: Adex & automation technology. Sold
Slide 34: Senior Management Team
Senior Management Team OTCQB: HWNI Mark Porter Dan Sullivan Stephen LaMarche David Barton Susanna Song CEO & Chairman CFO COO & Director Chief Technology Officer VP of Marketing & Communications 20+ years of technology industry President of PCN Enterprises. 25+ years of executive leadership 20+ year
Slide 35: Board of Directors
Board of Directors OTCQB: HWNI Mark Porter Stephen LaMarche Peter Kruse CEO & Chairman Director Director 20+ years of technology industry experience, he is a 25+ years of executive leadership in the technology 30+ years of financial and management experience channel veteran with extensive experience
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