BlackRidge Technology International Inc
BlackRidge Technology International — Investor Presentation (September 2017)
36 slides from BlackRidge Technology International's investor presentation, Sep 12, 2017
Slide 1: BlackRidge Technology Next Generation Cyber Defense
BLACKRIDGE TECHNOLOGY NEXT GENERATION CYBER DEFENSESEPTEMBER 2017 INVESTOR PRESENTATION
Slide 2: Safe Harbor
SAFE HARBOR THIS DOCUMENT WAS PREPARED BY BLACKRIDGE TECHNOLOGY, AND MAY CONTAIN FORWARD-LOOKING STATEMENTS, WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES, AND OTHER FACTORS, WHICH MAY CAUSE BLACKRIDGE’S ACTUAL RESULTS, PERFORMANCE, OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM FUTURE RESUL
Slide 3: BlackRidge at a Glance
[NET MARGINS]: ~65-70% 3 SYMBOL PRICE MARKETCAP Gross Margins CASHBURN C&CE BRTI $1.45 ~90-92% $46MM $0.4MM $2.5MM BLACKRIDGE AT A GLANCE BlackRidge authenticates identity and enforces security policy on the first packet, before a network session is establishedBlackRidge First Packet Authentication™
Slide 4: BlackRidge Corporate Development
BLACKRIDGE CORPORATE DEVELOPMENT 4 DEVELOPMENT IN MOTION BLACKRIDGE COMPLETES REVERSE MERGER INTO GROTE MOLEN, [OTC:GROT], A FULLY REPORTING, 9 YEAR OLD OPERATING PUBLIC COMPANY WITH IP ASSETS, REVENUES AND EBITDA FINRA APPROVES CHANGE OF NAME FROM GROTE TO BLACKRIDGE TECHNOLOGY INTERNATIONAL, INC.
Slide 5: Monetizing a Design Flaw in Network Security
MONETIZING A DESIGN FLAW IN NETWORK SECURITY DIFFERENTIATION DRIVEN VALUE-ADD
Slide 6: First Packet Authentication: Evolving Cyber Security
FIRST PACKET AUTHENTICATION™ EVOLVING CYBER SECURITY
Slide 7: The Vulnerability
THE VULNERABILITY ENTERPRISES AND GOVERNMENT AGENCIES ARE UNDER REPEATED CYBER ATTACK DDoS ATTACKS: designed to shut down systemsELABORATE STEALTH EFFORTS: designed to live undetected in the infrastructure and steal intellectual property or other sensitive data EXISTING SECURITY TECHNOLOGIES HAVE PR
Slide 8: Technology Development: Network Recon
TECHNOLOGY DEVELOPMENT NETWORK RECON USES VULNERABILITY SCANNERS TO PROBE NETWORKS AND THE DEVICES ATTACHED TO THEMInformation is being leaked, even in the presence of firewalls includes the existence and identity of servers and network applications. VULNERABILITY/PORT SCANNERS ATTEMPT TO ESTABLISH
Slide 9: BlackRidge Product and Partner Development
BLACKRIDGE PRODUCT AND PARTNER DEVELOPMENT 9 DEVELOPMENT IN MOTION DEVELOPMENT ACCELERATION PROGRAM, ARMY DOD $5M FUNDINGCORE PRODUCT DEVELOPMENTIP AND PATENT DEVELOPMENTTECHNOLOGY DEMONSTRATION PROGRAM, OSD ENTERPRISE PRODUCT DEVELOPMENTMARKET TESTS, 100G DEMONETWORK OVERLAY SOLUTION100G TAC GATEWA
Slide 10: The TCP/IP Design Flaw
IT IS THIS DESIGN FLAW OF TCP/IP THAT ENABLES SCANNING TOOLS TO IDENTIFY WHAT NETWORK APPLICATIONS ARE PRESENT AND TO DEVELOP THE “WEAPONIZATION” AND ATTACK THE SYSTEMS
Slide 11: BlackRidge Stops the Attacks at the Earliest Possible Time
BLACKRIDGE STOPS THE ATTACKS AT THE EARLIEST POSSIBLE TIME
Slide 12: Transport Access Control: Caller-ID for the Internet
TRANSPORT ACCESS CONTROL CALLER-ID FOR THE INTERNET
Slide 13: Authenticate & Enforce
AUTHENTICATE & ENFORCE BLACKRIDGE AUTHENTICATES IDENTITY AND ENFORCES SECURITY POLICY ON THE FIRST PACKET, BEFORE A NETWORK SESSION IS ESTABLISHEDStops port scans and network attacks Provides ROI and reduces riskAddresses network segmentation for compliance BLACKRIDGE ISOLATES AND PROTECTS SERVERS A
Slide 14: BlackRidge: Strong Value-Prop
BLACKRIDGE:STRONG VALUE-PROP REDUCED SYSTEM COSTREDUCED NETWORK TRAFFIC LOADREDUCED COMPLIANCE COST REDUCED SYSTEM COST:REDUCES EQUIPMENT ACQUISITION COSTSREDUCES UNAUTHENTICATED TRAFFIC REDUCED NETWORK TRAFFIC LOAD:REMOVE 99.999% OF UNAUTHENTICATED TCP/IP TRAFFICREMOVE UP TO 70% OF ALL SESSIONS BEI
Slide 15: BlackRidge Addresses the TCP/IP Network Vulnerability
BLACKRIDGE ADDRESSES THE TCP/IP NETWORK VULNERABILITY THAT IS EXPLOITED IN 100% OF CYBER ATTACKS
Slide 16: Go To Market Strategy, Roadmap and Development Plan
BLACKRIDGE GO TO MARKET STRATEGY ROADMAP AND DEVELOPMENT PLAN
Slide 17: Commercial Entry and Government Expansion
COMMERCIAL ENTRY AND GOVERNMENT EXPANSION 17 OUR PROCESS DoD and IBM provides market credibility and initial paths to market LEVERAGE DOD AS INNOVATOR AND IBM AS EARLY ADOPTER STRONG ROADMAP AND DEVELOPMENT TEAM IN PLACE DOD/ARMY CYBER PROGRAMS RESTARTED IN 2016 Sell direct and with partners to gove
Slide 18: Market Validation: Government, Commercial, and Technology Partners
MARKET VALIDATION GOVERNMENT, COMMERCIAL, AND TECHNOLOGY PARTNERS DoD/DISA – DOD UC Approved Products List in Q3; NATO BOA GOVERNMENT – THREE YEAR PIPELINE TECHNOLOGY PARTNERS COMMERCIAL – THREE YEAR PIPELINE DoE/NREL – Smart Grid Cybersecurity Testbed Pragmatics – integrated into FedRamp certified
Slide 19: Monetizing Each Engagement with Recurring Revenue
UNLIKE MANY CYBER SECURITY STARTUPS, BLACKRIDGE HAS FOCUSED ON MONETIZING EACH ENGAGEMENT; WHILE SECURING LONG-TERM, RECURRING REVENUE
Slide 20: Cybersecurity TAM
20 $93B2018 WORLDWIDE SPENDINGThe latest forecast from Gartner, Inc. predicts worldwide information security spending will grow ~7% to reach $86B in 2017 and will climb to $93B in 20181 $1T5Y CUME SPENDING 2017-2021Global cybersecurity spending is predicted to exceed $1T cumulatively over the next f
Slide 21: Patent Portfolio
PATENT PORTFOLIO CREATING DEFENSIBLE LEADERSHIP AND MARKET SHARE
Slide 22: IP Strategy: Disruptive, Patent Protected Technology
IP STRATEGY DISRUPTIVE, PATENT PROTECTED TECHNOLOGY *See appendix for patent details 22
Slide 23: Developing Intellectual Property Since Inception
BLACKRIDGE HAS FOCUSED ON DEVELOPING ITS INTELLECTUAL PROPERTY PORTFOLIO SINCE INCEPTION, KNOWING THAT ITS VALUE WOULD BE DERIVED PRIMARILY FROM CREATING DEFENSIBLE LEADERSHIP
Slide 24: Investment Summary
FIRST TO MARKET WITH A NEW APPROACH TO CYBER DEFENSE INVESTMENT SUMMARY STRONG INTELLECTUAL PROPERTY PORTFOLIO; 3-5 YEAR LEAD ON COMPETITION STRONG PRODUCT DEVELOPMENT PIPELINE: 2018: RELEASE OF BLOCKCHAIN PRODUCT INNOVATOR IN CYBER DEFENSE SOLUTIONS 2016: INITIAL COMMERICAL PRODUCT RELEASE 2H 2017
Slide 25: Contact
Chris Tyson – MZ Group North America chris.tyson@mzgroup.us 949-491-8235 Please contact us with any questions or for more information CONTACT DISRUPTIVE, PATENT PROTECTED TECHNOLOGY
Slide 26: Appendix
APPENDIX
Slide 27: Meet Our Team
MEET OUR TEAM 27 BLACKRIDGE MANAGEMENT CEO or Senior Executive at DEC, Adaptec, Sun Bob Graham Co-Founder Alteon WebSystems. Inventor of TAC, 8 patents John Hayes Public Company experience, Lehman brothers. SEC John Bluher CIO Xsigo, CIO/SVP Micromuse, IDS/IDMS security startups Bruce Fingles CEO/Fo
Slide 28: Meet Our Team
MEET OUR TEAM 28 BLACKRIDGE MANAGEMENT CEO/Co-founder CSwitch, EVP/Co-founder Transmeta, Sun, LSI Doug Laird CMO SevOne, VP CorpDev VERITAS; R&D HP, AT&T Bell Labs Mike Miracle IBM Distinguished Engineer, Brocade Distinguished Architect Tony Sager Jay Wright SVP – Engineering SVP – Marketing & Strat
Slide 29: Balance Sheet & Cap Table
BALANCE SHEET & CAP TABLE 29 BALANCE SHEET: JUNE 30, 2017 C&CE $1,218,241 PREPAID EXPENSES $197,629 INTANGIBLE $6,402,456 TOTAL ASSETS $7,833,057 AP $2,110,533 ACCRUED INTEREST $1,576,402 LONG-TERM DEBT [CURRENT] $400,000 CONVERTIBLE NOTES [SHORT- TERM] $3,712,638 TOTAL LIABILITIES $21,986,947 CAPIT
Slide 30: Network Security Comps
NETWORK SECURITY COMPS 30 COMPARISON OF NETWORK SECURITY CAPABILITIES Feature or Capability Transport Access Control Segmentation Firewalls Next Generation Firewalls NAC / 802.1x VPNs First Packet Authentication(pre-connection setup) Yes No No No No End-to-End Identity and Attribution Yes No No Same
Slide 31: Pubco Comps
PUBCO COMPS 31 COMPARISON OF PUBLIC COMPARABLE COMPANIES12 TICKER: ENTERPRISE: 52WK RETURN: MARKET CAP: EV: SALES Y/Y: GROSS MARGIN: EBITDA MARGIN: SALES: EBITDA: PANW Palo Alto Networks Inc (5.0%) 11,955 11,102 23.0% 76.0% 23.1% 1,891 438 NTCT Netscout Systems Inc 13.5% 2,928 2,818 0.6% 73.8% 25.3%
Slide 32: Pubco Comps
PUBCO COMPS 32 TICKER: ENTERPRISE: MARKET CAP: EV: P/EPS: 2018 P/EPS: EV/EBITDA: 2018 EV/EBITDA: EV/SALES: 2018 EV/SALES: PANW Palo Alto Networks Inc 11,955 11,102 119.02x 35.91x 25.56x 19.60x 5.91x 4.83x NTCT Netscout Systems Inc 2,928 2,818 33.74x 13.89x 10.26x 8.13x 2.59x 2.28x FEYE Fireeye, Inc.
Slide 33: M&A Comps
BUYING ENTERPRISE: TICKER: SELLING ENTERPRISE: TICKER: EXCHANGE: CONSIDERATION: PREMIUM TO MARKET CAP: P/S: SYMANTEC SYMC BLUE COAT [BAIN CAPITAL] N/A N/A $4.7B N/A 7.9X SYMANTEC SYMC LIFELOCK, INC. LOCK NYSE $2.4B 33% 3.6X CISCO CSCO APPDYNAMICS [APPD]1 N/A $3.7B N/A 18.9X INTEL INTC MOBILEYE MBLY
Slide 34: Granted Patents
GRANTED PATENTS DISRUPTIVE, PATENT PROTECTED TECHNOLOGY 34
Slide 35: Cybersecurity M&A and Funding Trends
35 146Q1/2017 M&A TRANSACTIONSCybersecurity deals hit an all-time quarterly high of 146 deals in Q1’17, up 26% from the previous quarterly high. The trend held through Q2’17, which saw just one fewer deal [145 total] compared to Q1’17.1 $1.5BQ2/2017 EQUITY FUNDINGThe amount of disclosed equity fundi
Slide 36: Thank You
THANK YOU
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