Usio, Inc. · NASDAQ:USIO

Usio — Investor Presentation (April 2021)

20 slides from Usio's investor presentation, Apr 13, 2021

  1. Slide 1: Investor Presentation

    © usIO’ Investor April 13, 2021 usio.com USIO Nasdaq Listed

  2. Slide 2: Forward Looking

    FORWARD LOOKING

  3. Slide 3: Company Overview | Record FY'20 Revenues

    Company Overview | Record FY’20 Revenues ®usio’ LUSIO (NASDAQ: USIO) is an Annual Revenue tment and Payment (eBPP) $3500 $2820 UUSIO's innovative and proprietary panne $2400 payment enablement tecnnology $2500 serves Integrated Software Vendors ((8Vs) and enterprise level merchants $2000 dae atone i

  4. Slide 4: Recent Highlights

    RECENT HIGHLIGHTS Q4 2020 and Q1 2021 * Revenues were $9.4 million for the fourth quarter, up 27% compared to $7.4 million in the same period last year Adjusted EBITDA was a positive $ 0.3 million in the quarter, an improvement of nearly $900,000 compared to adjusted EBITDA loss of $0.6 million in t

  5. Slide 5: Transactions Processed Per Year

    ®usio’ TRANSACTIONS PROCESSED PER YEAR Annual Transactions = 182 18 154 os 143 te 123 109 gn 20 ; | a 2016 2017 2018 19 2020

  6. Slide 6: Dollars Processed Per Year

    ®usio’ DOLLARS PROCESSED PER YEAR Dollars Processed Annually While total volume in 2020 decreased from 2019, both Card $3,340 and Prepaid showed increases vs Q4 2019. $350“ gasi¢ ——gaag $3,000 Credit Card Volume Processed = +17" $2500 Credit Card Tansacions Processed = +87" sama Prepaid Card Load Vo

  7. Slide 7: Our ACH Model

    ®usio’ 2020 ‘ACH Revenue % OUR ACH MODEL ‘TARGET CUSTOMER PROFILE * Consumer Driven a TARGET VERTICALS & CHARACTERISTICS HOW WE MAKE MONEY a tT + Recurring Transactions + Low Attrition $.70 OWA RETURNOR “ORIGINATION $41 |60%+ + Need for Advanced Technology

  8. Slide 8: Our Prepaid Model

    ®usio OUR PREPAID a MODEL _ Prepaid Revenue % ‘TARGET CUSTOMER PROFILE ‘6 + Entities looking to migrate away checks to a=» 2 fun ent and funds disbursement mechanisms virtua + Programs at Fund the Cardholder Acquisition Costs TARGET VERTICALS & CHARACTERISTICS HOW WE MAKE MONEY aT 8 a Healthcare Uti

  9. Slide 9: Merchant Acquiring: Payment Facilitation

    ®usio’ MERCHANT ACQUIRING PAYMENT FACILITATION Payment Facilitation (PayFac) is simply the latest innovation in merchant acquiring, providing: Acquiring Revenue % «= Frictiont T \d automated procedures - which have traditionally been very manual processes - to provide for mass adoption and scale in

  10. Slide 10: Our PayFac Model

    ®usio’ OUR PAYFAC MODEL ‘TARGET CUSTOMER PROFILE ‘TARGET VERTICALS & CHARACTERISTICS Healthcare Utilities Insurance Legal Non-Pro rmigr Hl + Low Attrition + Entities looking to turn payments from a cost center to a . + Recurring Payment Channels revenue generating business unit. Recurring:

  11. Slide 11: Payment Facilitation Revenue Illustration

    PAYMENT FACILITATION REVENUE ILLUSTRATION 1,000 Merchants processing $20mm/mo at 2.75% ®usio’ Transaction Expenses WR siren. 15% Card Brands 05% Processing Expense $1.2mm_ .50% = Net Revenue Split w/ ISV 175% = Gross Revenue to Usio $50,000 per month of revenue $600,000 per year of revenue

  12. Slide 12: IMS Acquisition

    IMS ACQUISITION » USI O° USIO OUTPUT SOLUTIONS output solutions Usio acquired the assets of IMS on December 15, 2020 for cash consideration of $5.9mm and a total of 945,559 warrants, vesting in three annual installments of 315,200 each on the first and second anniversary and 315,199 on the third ann

  13. Slide 13: Output Solutions

    ®usio’ OUTPUT SOLUTIONS ‘Output Solutions ‘TARGET CUSTOMER PROFILE Revenue % dalverys US Post and Electro mm ‘ing to reduce postage cost and increase efficiencies Projected Revenue in 2021 ‘TARGET VERTICALS & CHARACTERISTICS gy PROFIT MARGIN BREAKDOWN: + Print, Mail & Electronic Billing Depend fecur

  14. Slide 14: FY 2020 Financials

    © USsIO’ suLY 120% Financials mS USig ysl Nasdaglisi.,

  15. Slide 15: Income Statement

    ®usio’ INCOME STATEMENT Adjusted $8) stt.7) See non-GAAP econliation of Adjusted EBITDA on slide 16

  16. Slide 16: Revenues by Category

    ®usio’ REVENUES BY CATEGORY December 31, 2020 December 31, 2019 $Change _% Change ACH and Complementary Service Revenue $ 8,471,705 § 9,343,974 § (872,269) (9.3%) Credit Card Revenue $19,453,501 $ 17,329,322 $2,124,179 12.30% Prepaid Card Services Revenue $ 3,166,580 $ 1,527,239 $ 1,639,341 107% ion

  17. Slide 17: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Non-GAAP Reconciliation (Values in Millions) Revenues Reconciliation from Operating Income (Loss) to Adjusted EBITDA: 31-Dec-20 ®usio’ ‘Twelve Months Ended 31-Dec-19 28.2 Operating Income (Loss) $ (3.8) $ (5.1) Depreciation and Amortization a ae 2.0 EBITDA $ (2.2) $ (3.0) Non

  18. Slide 18: Balance Sheet Highlights

    ®usio’ BALANCE SHEET HIGHLIGHTS ‘Account 12/31/20 _12/31/19_ 12/31/18 cash $50. $. 324 $2 22 Restricted Cash & Settlement Funds $ 594 $ 494 $ 573 Total Assets $ 827 $ 616 $ 682 Total Liabilities $ 6650 $ 540 $ 586 Total Equity $ 67 $ 76 $ 96 Total Liabilities & Stockholder Equity $ 827 $ 482 $ 453

  19. Slide 19: Investment Summary

    . | ®usio’ 3 INVESTMENT SUMMARY * Innovative Leader in the Fast-Growing FinTech space Synergistic Multi-Channel Product Portfolio * ACH * Prepaid Card Issuing * Merchant Processing * Electronic Bill Presentment & Payment * Print and Mail On Pace for Record Revenues = Cr i in a Consolidating Industry

  20. Slide 20: Investor Presentation

    © usIO’ Investor April 13, 2021 usio.com USIO Nasdaq Listed

Usio — Investor Presentation (April 2021) on 6ix