Global Gas Corporation · OTC:HGAS
Global Gas — Dune Acquisition — SPAC Merger (October 2021)
52 slides from Global Gas's SPAC merger presentation, Oct 12, 2021
Slide 1: Investor Presentation October 2021
INVESTOR PRESENTATION October 2021
Slide 2: Disclaimer: Important Information
DISCLAIMER Important Information This presentation (the "presentation") is being provided on a non - reliance basis for informational purposes only. This presentat ion has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination betwe
Slide 3: Disclaimer (Cont'd)
DISCLAIMER (CONT’D) Neither DUNE, nor the Company undertakes to advise or notify any person of any information coming to their attention in relat ion to the Company or otherwise to correct, update, revise or reissue this presentation, or accepts any duty of care to any person in respect of this pres
Slide 4: Disclaimer (Cont'd)
DISCLAIMER (CONT’D) regulations; and (xi) the possibility that the Company or DUNE may be adversely affected by other economic, business, and/or com petitive factors. The foregoing list of factors is not exclusive. Additional information concerning certain of these and other risk factors is containe
Slide 5: Disclaimer (Cont'd)
DISCLAIMER (CONT’D) obtained from the use of such content. THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NO T L IMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE F OR ANY DI
Slide 6: Disclaimer (Cont'd)
DISCLAIMER (CONT’D) Information and cooperate to resolve any complaint alleging any breach of any such laws in respect of any handling or use of the information by any Recipient. The Company and DUNE own or have rights to various trademarks, service marks and trade names that they use in connection
Slide 7: Disclaimer (Cont'd): No Offer or Solicitation
DISCLAIMER (CONT’D) No Offer or Solicitation This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any shares or other se curities, business or assets, or to enter into any agreement or arrangement and neither this presentation nor anything contain
Slide 8: I. Introduction
TRADEZERO, WY |. Introduction
Slide 9: Today's Presenters
Daniel Pipitone Co - Founder & CEO Kosta Corriveau CTO Carter Glatt CEO & Director Andrew Koslow General Counsel 9 TODAY’S PRESENTERS
Slide 10: Dune Acquisition Corp. Is Led by a Differentiated and Seasoned Management Team
DUNE ACQUISITION CORP. IS LED BY A DIFFERENTIATED AND SEASONED MANAGEMENT TEAM Dune’s management team has the operational expertise to execute throughout the life - cycle of a SPAC transaction x Well - rounded Board of Directors who are synergistic and accretive thought partners in the FinTech , Sof
Slide 11: Significant and Growing Addressable Market Opportunity with Powerful Secular Tailwinds
Significant and Growing Addressable Market Opportunity with Powerful Secular Tailwinds Self - directed retail traders continue to grow in size and sophistication, demanding increasingly advanced functionality Full - Featured Trading Platform, Designed to Address the Full Spectrum of Active Traders C
Slide 12: TradeZero Is the Ideal Target for Dune Acquisition Corp.
Dune Acquisition Criteria Differentiated product offering with the potential for disruption in the Software and Fintech sector Differentiated proprietary technology and intellectual property rights Disciplined organic growth and profitable unit economics Accomplished management teams who are subject
Slide 13: Transaction Summary
TRANSACTION SUMMARY • Implied transaction value of $556M with $716M pro - forma equity value • Transaction represents 14.9x 2022E P/E (3) and 4.9x 2022E revenue • Transaction expected to be funded by Dune’s $173M cash in trust (4) • Net proceeds from the transaction of $160M placed on balance sheet,
Slide 14: II. TradeZero Overview
TRADEZERO, WY ll. TradeZero Overview
Slide 15: Introduction to TradeZero
INTRODUCTION TO TRADEZERO Building the platform to optimally serve the needs of the global active trader community Awarded Best Brokerage for Short Selling at the 6th Annual Benzinga Global Fintech Awards NEXT - GEN ACTIVE TRADING PLATFORMS x Choice of four front end platforms x Real - time streamin
Slide 16: Key Financial and Operating Metrics
Note: See Appendix for GAAP to Non - GAAP reconciliation. (1) Adjusted net income and adjusted EBITDA are adjusted for $16 million of excess owners' compensation and $1.6 million of stock - ba sed compensation in '21E. (2) Per FINRA definition, “Active Account” is any account with more than $0.50 of
Slide 17: Differentiated Across Product, Technology and Support
(1) Above a certain price. (2) Offshore only. 24 x 7 Live Customer Support Multi - Asset Class Pre & Post - Market Trading & Fast Execution Ability to Place Multiple Orders Simultaneously Wide Access to Stocks, Including Small Caps Multi - Platform Access Delivered via Web, Desktop and Mobile Device
Slide 18: TradeZero's Next Generation Platform
TradeZero’s next generation platform provides traders the capabilities, tools, and service they need Today’s active traders face issues at times with trading platform offerings TODAY’S ACTIVE TRADERS NEED: Better tech, features, and flexibility Better access to full range of market capabilities Bett
Slide 19: III. Market Opportunity
TRADEZERO, WY Ill. Market Opportunity
Slide 20: Global Online Trading Platform Market Size
GLOBAL ONLINE TRADING PLATFORM MARKET SIZE (1) (1) Source: Verified Market Research. Represents market size defined as revenue for Online Trading platforms, also referred as El ect ronic trading platforms, defined as a computer software programs used to place orders for financial commodities over a
Slide 21: Rise of the Retail Trader Supported by Powerful Trends
10% 23% 31% 27% 9% 6% 50% 44% 2010 2021 Retail Institutional Buy Side Bank Non-Bank Market Makers/HFT RISE OF THE RETAIL TRADER SUPPORTED BY POWERFUL TRENDS RETAIL GENERATING AN INCREASING SHARE OF TRADING VOLUME… U.S. equity volume by market participant Source: Bloomberg Intelligence, Deutsche Bank
Slide 22: Capturing the Active Retail Trader
~$100 Illustrative Avg. Annual Revenue Per Account (1) • Conducting first trades using online broker • Trade in small volumes / fractions • Tend to buy and hold • Prefer commission - free trading CAPTURING THE ACTIVE RETAIL TRADER (1) Source: HOOD S - 1; Represents 2020 Revenue divided by average of
Slide 23: Positioning vs. Competitors
POSITIONING VS. COMPETITORS Platform Sophistication Trader Sophistication Low High Low High WHY SOPHISTICATED TRADERS CHOOSE TRADEZERO UNRIVALED ACCESS TO HARD - TO - FIND SHARES FOR SHORTING VIA TRADEZERO LOCATOR PROPRIETARY, PROFESSIONAL - GRADE, FEATURE - RICH USER INTERFACE SUPERIOR PERSONALIZED
Slide 24: IV. TradeZero's Product & Tech
IV. TradeZero's Product & Tech
Slide 25: Core Product Offerings
(1) $59/month includes both Pro and Web, as of October 10, 2021. ZERO PRO ZERO WEB ZERO MOBILE ZERO FREE Provides the speed and all the features needed for active traders An easy - to - use browser - based platform that will run on any device A completely free real - time browser - based trading sys
Slide 26: Patent Pending Short Locates Service
ADVANTAGES WHAT IT IS TradeZero’s newly - launched, patent pending Locates service includes unique functionality that allows users to sell back short locates that are no longer needed, creating the world’s only retail marketplace for short locates TRANSPARENCY & SPEED At other brokers, getting Locat
Slide 27: TradeZero Locate Services: A Typical Transaction
TRADEZERO LOCATE SERVICES: A TYPICAL TRANSACTION (1) The TradeZero Locator has a configured maximum response time of ~8 seconds as of October 10, 2021. User decides to short shares believing future value of the shares will fall Lends Easy to Borrow (“ ETB ”) shares to user Locates non - ETB shares T
Slide 28: V. Customers & Growth
V. Customers & Growth
Slide 29: Total Active Accounts and Average Equity Over Time
(1) Per FINRA definition, “active account” is any account with more than $0.50 of equity and Average Account Equity represents th e a verage account balance per account as of June 30, 2021. TRADEZERO IS POISED TO CONTINUE BUILDING ON ITS STRONG CUSTOMER GROWTH Active Accounts Avg. Account Equity $0k
Slide 30: TradeZero User Base Profile
• Non - professional individuals (1) investing their own personal capital • Near ~40% (2) of users on any given month use the TradeZero Locator • Over 75% of users on average engage (3) with the platform on a monthly basis • The median age is 33 years old, and the average age is 34 years old (4) • G
Slide 31: Exceptional Customer Service Drives User Loyalty
EXCEPTIONAL CUSTOMER SERVICE DRIVES USER LOYALTY (1) The Average of each day’s average time to answer a chat between January 1, 2020 to June 30, 2021. (2) Trustpilot.com reviews as of September 16, 2021. Industry leading customer service capabilities 1 2 Extremely satisfied customer base 3 100% huma
Slide 32: Proven User Engagement, Retention and Monetization
PROVEN USER ENGAGEMENT, RETENTION AND MONETIZATION TradeZero’s user base is highly sticky with strong engagement and monetization ~$225 Avg. TTM Customer Acquisition Cost (1) ~$4k 1st Year Revenue Per Account (2) ~17.5x 1st Year Rev / CAC Ratio ~75%+ User engagement (3) 8% 6% 5% 6% 6% 4% 4% 4% 2% 45
Slide 33: Three Pillar Expansion Strategy
Knowledge of our customers 1. Geographic 2. Product 3. Platform Build Out > TradeZero Canada > Cryptocurrency > Complex options > Institutional Locates > Europe > Middle East > APAC > Latin America > Commodities Futures > Foreign Exchange > Self - Clearing > Margin Loan > Security Lending 33 Stage 1
Slide 34: Roadmap for International Expansion
(1) Per BrokerNotes “The Modern Trader” 2018 research report. Canadian market calculated as implied share of North American market by population. Est. Launch Date 2024 Est. Market for New Accounts (1) 1,200,000+ TZ CANADA Est. Launch Date 2022 Est. Market for New Accounts (1) 175,000+ TZ LATIN AMERI
Slide 35: Growing Opportunity for TradeZero
GROWING OPPORTUNITY FOR TRADEZERO TRADEZERO TODAY FUTURE CATEGORY EXPANSION OPPORTUNITES TradeZero is well positioned to capitalize on the expanding demands of retail traders Basic Equity Options U.S. Equities Short Locate Service Complex Options Basic Equity Options U.S. Equities Short Locate Servi
Slide 36: New Products and Capabilities
NEW PRODUCTS AND CAPABILITIES TradeZero’s growth is powered by a promising, organic product roadmap • Platform API for brokers and clearing firms to be able to tap into TradeZero’s locate system • Separate revenue stream as they provide these services to other brokerages • Further improvement of the
Slide 37: VII. Financial Summary
TRADESeRd WY VII. Financial Summary
Slide 38: How We Generate Revenue
Fees • Intraday locates and pre - borrows • Overnight borrow charges • Banking fees Commissions • Equity & option commissions and routing fees • On a per - share basis with a trade minimum PFOF & Rebates • Payment for order flow • Exchange rebates on equities and options Others • Platform subscripti
Slide 39: TradeZero Projected Financial Snapshot
TRADEZERO PROJECTED FINANCIAL SNAPSHOT REVENUE ($MM) ADJUSTED NET INCOME (1) ($MM) (1) Excludes non - recurring compensation expense from 2019 to 2021; Excludes addition of stock - based compensation expense on go - forwa rd basis. Gross Margin % Adj. Net Income Margin % Adj. EBITDA Margin % ADJUSTE
Slide 40: Drivers of Revenue Growth
4 16 28 41 57 FY19A FY20A FY21E FY22E FY23E DRIVERS OF REVENUE GROWTH 121% 120% 64% 46 % 32% 94% CAGR DARTs (2) (MM) ACTIVE ACCOUNTS (1) ( 000s ) (1) Per FINRA definition, “active account” is any account with more than $0.50 of equity. (2) Daily Average Revenue Trades as defined by Nasdaq: https://w
Slide 41: Projected Revenue Build
$10 $33 $43 $51 $69 $4 $17 $27 $42 $54 $5 $7 $12 $16 $7 $10 $14 $16 $55 $85 $114 $154 '19A '20A '21E '22E '23E Fees Commissions PFOF & Rebates Others PROJECTED REVENUE BUILD 75% CAGR FY $3,634 $5,968 ~$4,400 ~$4,400 ~$4,400 Revenue / Avg. Active Account 41 REVENUE ($MM)
Slide 42: TradeZero Summary Projected P&L
TRADEZERO SUMMARY PROJECTED P&L Note: See Appendix for GAAP to Non - GAAP reconciliation. FY ending December 31. (1) Excludes addition of stock - based compensation expense on go - forward basis, includes estimated public company expenses. (2) 2019 - 2021 excludes impact of Excess Owners Compensatio
Slide 43: VIII. Appendix
wnpeteey Y VIIL_Appendix
Slide 44: TradeZero's Risk Management
TRADEZERO’S RISK MANAGEMENT (1) Can vary based on liquidity or halts in underlying stocks held in an account. Market Risk Management Systems and Processes ACH Fraud Prevention Intelligence sharing with our financial partners Manual background checks of 1 st time large depositors ACH deposit limits 4
Slide 45: Attractive Entry Multiple vs. Online Brokerage Comparables
ATTRACTIVE ENTRY MULTIPLE VS. SELECTED ONLINE BROKERAGE COMPARABLE COMPANIES Online Brokers Source: Company Filings, S&P Capital IQ. Note: See Appendix for GAAP to Non - GAAP reconciliation. Market data as of October 8, 20 21. Comparable company projections reflect median analyst consensus estimates
Slide 46: Attractive Entry Multiple vs. Consumer Fintech Comparables
4.9x 7.7x 15.4x 9.9x 9.7x 9.5x 10.9x 5.6x 35% 57% 31% 0% 26% 22% 47% 16% ATTRACTIVE ENTRY MULTIPLE VS. SELECTED CONSUMER FINTECH COMPARABLE COMPANIES Source: Company Filings, S&P Capital IQ. Note: Market data as of October 8, 2021. Comparable company projections reflect medi an analyst consensus est
Slide 47: GAAP to Non-GAAP Reconciliation
GAAP TO NON - GAAP RECONCILIATION 47 FY19A FY20A FY21E Reconcilliation to adjusted EBITDA Net Income $1,979 $12,826 $24,985 Provision for income taxes $589 $3,464 $7,035 Non-Controlling interest $0 $0 ($44) Depreciation and Amortization $108 $789 $1,342 EBITDA $2,675 $17,078 $33,317 Stock Based Comp
Slide 48: Risk Factors: TradeZero's Operations
RISK FACTORS Risks related to TradeZero’s Operations • We have a limited operating history, which makes it difficult to evaluate our business and prospects and increases the risks ass ociated with an investment in our common stock. • We have grown rapidly in recent years and we have limited operatin
Slide 49: Risk Factors: TradeZero's Industry
RISK FACTORS Risks related to TradeZero’s Industry • We operate in highly competitive markets, and many of our competitors have greater resources than we do and may have products an d services that may be more appealing than ours to our current or potential customers. • If we fail to retain existing
Slide 50: Risk Factors: Platform, Technology and IP
RISK FACTORS Risks related to Our Platform, Technology and IP • Our platform has been, and may in the future be, subject to interruption and instability due to operational and technological fa ilures, whether internal or external. • Our products and internal systems rely on software that is highly t
Slide 51: Risk Factors: Regulation
RISK FACTORS Risks related to Regulation • As a registered broker - dealer, TradeZero is subject to “best execution” requirements. We could be penalized if we do not comply with these requirements and these requirements could be modified in the future in a way that could harm our business. • Regulat
Slide 52: Risk Factors: Business Combination
RISK FACTORS Risks related to the Business Combination • Our ability to successfully effect the business combination and the combined company’s ability to successfully operate the bu sin ess thereafter will be largely dependent upon the efforts of certain key personnel, whom we expect to stay with t