Toronto | Los Angeles | New York | Hong Kong | LondonTraining doctors about medications, Sales...
Transcript of Toronto | Los Angeles | New York | Hong Kong | LondonTraining doctors about medications, Sales...
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Toronto | Los Angeles | New York | Hong Kong | London
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Forward Looking Statements
Except for statements of historical fact, this presentation contains certain "forward-looking statements" and "forward-looking information" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forwarding-looking statements can be identified by the use of forward-looking terminology such a "plans",
"expects", "budgets", "schedules", "estimates", "anticipates" or "believes" (or the negatives or such words) or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements include, but are not limited to, statements regarding the growth of ARHT Media Inc. and expectations
regarding the growth and impact of the Company's product offerings, including but not limited to, any statements that the growth of humagrams or similar type holograms.
Readers are cautioned that no statements contained in this presentation should be construed as a guarantee or assurance of future performance or results.
Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward looking statements, including but not limited to: risks related to the operation of software and technology of the company; risks
related to additions to software of modifications; risks related to the economy; regulatory risk including changes to the regulatory framework for operations; the ability of ARHT Media to obtain regulatory, including stock exchange and other approval for acquisitions; the entering into proposed new markets and other proposed activities; management risks; risks relating related to the identity and
make future acquisitions; risks related to the regulatory environment; assumptions and uncertainties related to the expected size and market for the company’s technologies; and the acceptance of the company’s products and services in existing and new markets and other risks, uncertainties and assumptions contained in the financial statements and management discussion and analysis documents
available on www.sedar.com.
An investment in the Company's securities should be considered highly speculative. There is no guarantee that an investment in the Company will earn any positive return in the short or long term. An investment in the Company is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. There are risk factors associated with an investment in the
Company's securities. Additional information can be found under the heading "Risk Factors" in the Company’s Financial Statements and Management Discussion and Analysis documents available on www.sedar.com.
The company undertakes no obligation to update forward looking information if circumstances or estimates or opinions should change except as required by law and applicable securities regulations. Users of this presentation are cautioned not to place undue reliance on forward looking statements. Neither the TSX Venture Exchange nor its regulations services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the information contained in this presentation.
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Investment Highlights
Differentiated, patent-protected technology
Leadership team that has done this before
Growing client base of global, marquee brands
Growth plan focused on proven key verticals with a goal to build networks within the pharma, tech, finance and education verticals to generate recurring revenue
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We Create Real-Time Holographic Presence
Capture (In 4k with live
audience feedback)
Transmit (Low latency, to and from multiple locations
over standard internet connection) Display
(Stunning holograms that create presence, capable of live interaction with multiple
audiences in different locations)
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Our Offerings and Customers
What do we offer? Who do we work with?
Events
Equipment sales
(Standard)
Equipment sales
(Bespoke)
Rent equipment for one-time use at events Speakers for public or internal corporate events Live rallies for campaigning political candidates
Hollywood stars appearing at film premiers
Permanently install products for repeat use Recurring remote / guest lectures in a University
Collaboration tool for global corporations
Permanently install bespoke solutions Bespoke retail brand activations Large-format permanent display
Direct clients
Indirect clients
Education
Pharma
Entertainment
Tech and Financial Services
Others
Resellers
Universities, Colleges, Museums, Science centers
Training doctors about medications, Sales training,
Town hall meetings for global companies
Movie studios, artist labels, professional sports, concert &
festival venues
5G infrastructure players, leading cell phone providers, investment banks, financial
advisors, insurance companies
Political, speakers, Other companies
Product resellers
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Focused on Growth, Profitability and Monetization
2019+ 2018 2015-2017
Product development Turn Around Growth/Profitability/Monetization
Product development Monetization
Leadership
Shareholders Single major investor Diversified investor base; >70% friendly & long-term
Board of Directors High-profile, public personalities / celebrities Veteran business professionals with diverse backgrounds
Executives Founders of the company Business executives who have done this before
Business Model
Core Focus Event driven revenue: Very large, one-off events with extensive production requirements and entirely bespoke staging and display
Small-medium events with standardized delivery and pre-negotiated revenue
Sale of standardized equipment kits, earning recurring revenue & building a globally installed, interactive network
Delivery Personnel ARHT’s large, in-house delivery team ARHT contractors and trained third-party resources
Technology Display Product Large, expensive, bespoke, one-time-use screens Small, affordable, standardized, re-usable screens
ARHT Engine Recently finished, often ‘buggy’, more expensive to use Flawless transmission with key value-added features
Labour Force Sales Team Management led start-up; sales function not structured Sales force of 8 expecting to grow to 10
Technical & Delivery Team Large in-house team Small in-house team + experienced contractors globally
New Executive Team Today
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Sample Client Events and Sales - by Offering
Events Equipment sale (Standard) Equipment sale (Bespoke)
SunLife Financial CPBI Forum 2019 Vancouver
Permanent collaboration tool for a tech incubator in Shenzhen & Toronto
Retail advertising Holographic Cube for New Jersey Hall of Fame in Newark airport
SunLife Financial beamed SVP Dave Jones to the Canadian Pension and Benefits
Institutes annual national forum
“The hologram worked perfectly and was the talk of the conference”, Kevin Dougherty,
EVP Innovation and Partnerships
A tech incubator wanted to introduce Canadian start-ups to Chinese investors, but was severely
limited by the costs of time & geography
By permanently installing Capture & Display in both cities, they consistently arrange ‘face-to-face’ meetings between start-ups + investors,
drastically accelerating the investment process
The NJHoF wanted an innovative new way to inspire state residents to be the next
generation of New Jersey leaders
By showcasing holographic interviews of inductees, they can reach and inspire
millions over the next 5+ years at the must see attraction in Newark International airport
Capture studio and H5 Display
Capture studio and H10 Display
China Ontario, Canada
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Sample Client Events – by Vertical
Education Government Media & Entertainment
Technology & Pharmaceutical
Women in Tech Event @ Imperial College of London
Crown Prince of Dubai @ World Government Summit
Jason Momoa - Aquaman Live lecture showcasing China Unicom’s 5G capability
Beamed in guest speakers from LA + NY, including the 2018 Tech Woman of the Year Marily Nika, a
Product Manager at Google
Covered by 350+ media outlets globally, it was the Imperial
College’s biggest PR event ever
Displayed His Highness Sheikh Hamdan as a life sized hologram for his keynote, titled ‘The 7 Shifts
Shaping Future Cities’
The Summit had over 4,000 participants, including a number of world leaders + industry experts
Beamed Jason Momoa from New York to Mexico City and
Sao Paulo, Brazil, for fan engagement events to promote
the release of Aquaman.
Beamed in a top physics teacher as part of a conference
in Wuhan hosted by China Unicom
The event highlighted China Unicom as being at the forefront
of 5G innovation
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ARHT Value Proposition
We help clients overcome time & geography The world is a big place – We help busy
individuals get better leverage out of their time by appearing in 2+ places at once
We ‘Wow’ end customers & deliver an unforgettable experience
Audiences routinely give fantastic feedback on our events – The feedback is so positive that some speakers prefer to communicate via our
holograms vs. attending in person!
We position clients as tech-forward & futuristic
Keeping up with the latest technology is a must – nothing shows your customers that you are ahead of the pack like appearing
in front of them as a hologram
We help companies save money and reduce their carbon footprint Even if you have the time to travel to a remote
event, you don’t need to! Avoid the financial and environmental cost of flying by traveling as a
hologram instead
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2020: A High Growth Phase for ARHT
Revenue forecast by customer type Revenue forecast by offering
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FY2020 P&L Forecast
• Gross margin has increased from 43% in 2018 to 46% in 2019 and is expected to increase to 60% in 2020.
• Improvement in gross margin is the result of an increase in recurring revenue.
REVENUE 1,603,315.00 3,274,087 6,685,000
COGS 911,134.00 1,781,279 2,674,000
GROSSPROFIT 692,181.00 1,492,808 4,011,000
TOTALOPERATINGEXPENSES 5,010,387.00 4,886,578 5,018,126
EBITDA (4,318,206) (3,393,770) (1,007,126)
2020Total$
2018Total$
2019Total$
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Potential Watershed Events
Ø Wholesale adoption of ARHT Media Platform as the preferred training method for any multinational company.
Ø Rollout of permanent locations at training centres at global pharmaceutical companies.
Ø Rollout of permanent installations at three or more marquee universities.
Ø Contracting of current proposals for more than 20 locations at networked university.
Ø Expanded contract for financial sales events globally with leading private equity firms.
Ø Adoption as the premium telepresence offering of any major multinational company.
Ø Large scale event rollout to promote 5G activations globally.
Ø Completion of ARHT Media Holopod and contracting a major network of board rooms of any multinational company.
Ø Adoption of the platform as a premium telehealth offering.
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Key financial information
Capital structure overview Select figures
ART.V TSX Venture Exchange
$0.10 CAD
Closing Price As Of Nov 1, 2019
Capital structure Common shares outstanding 74,428,973
Options outstanding
at $0.74 2,440,455
at $0.14 2,909,000
Warrants outstanding
at $0.60 10,146,315
at $0.13
at $0.18
26,843,335
19,980,738
Fully diluted shares 135,977,501
Market capitalization $7,442,897
R&D + proof of concept to date:
Estimated monthly overhead:
Estimated quarterly revenue required for break even cash flow:
C$9.50 Million
C$425k
C$2.19 Million
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Where we would deploy additional capital
Marketing
• Website and SEO
• Additional conference participation (Trade shows, industry associations, sponsorship, brand building)
• Investor relations
Sales function expansion
• London, Hong Kong, New York Sales Reps
Increasing inventory
• Rental/Mobile demo kits in LA, Toronto, New York, London, Hong Kong
• Offer both lease and sale option on fixed networks
Other strategic focus areas
• Complete R&D and prototype of ARHT Media Holopod for universities, training centres and board rooms, including installations at our demo studios.
• Patent protection – Expand patent portfolio to gain protection in key markets
• First mover advantage (IMAX)
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Investment Highlights
Differentiated, patent-protected technology
Leadership team that has done this before
Growing client base of global, marquee brands
Growth plan focused on proven key verticals with a goal to build networks within the pharma, tech, finance and education verticals to generate recurring revenue
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Toronto | Los Angeles | New York | Hong Kong | London