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Investor PresentationAugust 2014
Mobile Security for a Mobile World ®
October 2014
Mobile Security for a Mobile World ®
Forward Looking Statements
Certain matters discussed in this presentation contain forward-looking statements that involve material risks toand uncertainties in the Company's business that may cause actual results to differ materially from thoseanticipated by the statements made herein. Such risks and uncertainties include, among other things, ourability to establish and maintain the proprietary nature of our technology through the patent process, as well asour ability to possibly license from others patents and patent applications necessary to develop products; theavailability of financing; the Company's ability to implement its long range business plan for various applicationsof its technology; the Company's ability to enter into agreements with any necessary marketing and/ordistribution partners; the impact of competition, the obtaining and maintenance of any necessary regulatoryclearances applicable to applications of the Company's technology; and management of growth and otherrisks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securitiesand Exchange Commission. This is not a solicitation to buy or sell securities and does not purport to be ananalysis of the Company's financial position.
This presentation does not constitute an offer to sell or a solicitation of an offer to buy securities nor does itconstitute an offer or solicitation in any jurisdiction in which such offer, solicitation or sale would be unlawfulprior to registration or qualification under the securities laws of any such jurisdiction. Any such offer may only bemade pursuant to a registration statement or pursuant to any exemption from registration, if available. Nogeneral solicitation whatsoever is made or intended hereby.
A registration statement relating to these securities has been filed with the Securities and Exchange Commissionbut has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior tothe time the registration statement becomes effective.
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The methods the hackers used to gain access could be rendered uselesswith the introduction of Nxt-ID biometric and encryption technologies.
Large Market Opportunity
2013/2014 was an record period for data breaches Over 1 billion records lost!
150 Million
145 Million
110 Million
6 Million
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Large Market Opportunity (cont)
In the United States
1 10Out of Every
CONSUMERSHAS ALREADY BEEN
A VICTIMOF IDENTITY THEFT $0.0
$6.0
$12.0
$18.0
$24.0
$30.0
$36.0
$42.0
$48.0
0
2
4
6
8
10
12
14
16
(In B
illio
ns)
(in M
illio
ns)
Identity Theft Victims and Fraud Amounts
# of Victims Fraud $
Source: 2013 Javelin Strategy & Research
− Passwords have been proven ineffective
− A massive proliferation of mobile devices and digital wirelesscommunications means that hacking and identity theft are atan all time high.
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Incident %
Stolen Wallet/Purse 44%
Auto Burglary 16%
Online 15%
Home Burglary 12%
Signature Forgery 10%
Change of Address or Postal 2%
Stolen Computer 1%
Large Market Opportunity (cont)
Lose your Wallet, your Identity may be Next...Top known causes of Identity Fraud
Source: The Travelers Companies, Inc.
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Large Market Opportunity (cont)
− There were 176.8 million credit cardholders in the United States alone in 2008. The average credit cardholder has 3.5 credit cards
− There are approximately 24 million consumers who have been a victim of identity theft in the last 2 years.
− Americans just don’t want to buy things on their iPhones(New Republic). Over 60% of smartphone users do not want to put payments on their smartphone. (Consult Hyperion and First Data)
− Nxt-ID’s approachable market is by deduction 100 million consumers in the US alone with 25% of that market highly receptive to a secure payments solution.
− A modest success (10%) in capturing our target market translates into a $1.5 Billion market opportunity for the Wocket by itself over the next few years
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Wocket™ Smart Wallet
− Too many cards in your wallet? Put a Wocket in your Pocket!
− The Wocket™ is a separate physical electronic smart wallet that will configure a single programmable card for credit cards, store cards, ID cards etc.
− Wocket can hold up to 10,000 pieces of data
− Information stored on a tamper-proof encrypted chip
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Wocket™ Smart Wallet
− Access protected by secure biometrics
− Can be used at any magnetic stripe payment terminals as opposed to touchless smartphone payments
− Barcodes can be read and scanned by traditional laser barcode scanners
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Stolen WalletThe process of dealing
with a lost or stolen wallet is complex and onerous but not with Wocket™
Wallet BulkWocket™ helps reduce
the bulk of present wallets while keeping your personal details
more secure.
10,000 RecordsCredit cards, loyalty
cards, health records. Keep the data you want
in your Wocket™.
Wocket™ Advantages
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NXT-ID has developed new mobile security technologies for pointof sale and online payments and a wide variety of otherapplications
Dynamic Pairing Codes
facematch
Disruptive Technology Solutions
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Competitive Advantages
– First to market with a real Smart Wallet that can revolutionize the wallet industry like smartphones. Works on all POS terminals in the US.
– Developers with over 15 years experience in cutting edge biometric development in companies that have received approximately $30 million from the US Government over 86 awards
– Proprietary IP (patent pending) for both the Wocket™ and the company’s unique dynamic pairing technology for the protection of transmitted data
– Operating management has successfully managed public companies and operating start-ups.
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Wocket™ Growth Plan
Wocket Release
NXT-ID plans to launch the first generation Wocket™ in Spring 2014. This Wocket will include features such as biometric access and secure card storage.
Encryption
Launch “wocket numbers” based on dynamic pairing codes for the transmission of payment data. The use of these numbers could have prevented the Target data breach.
Online Protection
Launch “Check out with Wocket” allowing consumers to use “wocket numbers” online preventing open private data from being sent over the internet.
Communication
Will introduce the second generation Wocket™ in 2016 having a communication module capable of making encrypted data transmissions from Wocket™ to Wocket™
Payments
Launch Wocket™ for peer to peer secure currency transactions for traditional and crypto-currencies like Bitcoin . Revenue model will have both product revenue and transaction revenue.
2015 2016
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Wocket™ Go To Market Strategy
Direct to Consumer Marketing
Strategic Partners for wocket number encryption to include card issuing banks Partner Channel
Distribution in Mid 2015
Retail stores to supplement direct consumer sales
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Dynamic Pairing Codes
Smart / Identity Cards
Smart Wallets Key Chains
Dongles
Watches
Rings
Necklaces & Bracelets
Mobile Devices
For secure authentication on mobile and static devices, the Dynamic Pairing Code is generated by an FOB that can take a variety of forms:
Secure Authentication and Encryption
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MobileBio for Smartphone Apps
Access Control- Improved access control applications for government, industry & commercial consumers, i.e. DHS, ATM machines
Law Enforcement - Existing sales and developed product deployed in law enforcement. Active installations and customers
Natural - A more natural biometric method of authentication than fingerprint that allows an individual access to multiple devices
Innovative - A new method of recognizing both speakers and specific words providing innovative multi-factor recognition
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Intellectual Property
PATENTS APPLIED FOR:
− Method for replacing traditional payment and identity management systems and components to provide additional security and a system implementing said method
− The “Un-Password™ “ risk aware end-to-end multi-factor authentication via dynamic pairing
− Universal authentication and data exchange method, system and service
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Key Management Team
Gino M. Pereira, Chief Executive OfficerMr. Pereira has over 30 years of executive, operational and financial experience with technology companies inthe United States, Europe and the Far East. Earlier in his career, he served as a divisional Chief Financial Officer forWilliams Holdings, plc., a large multi-national company. From 2004 to 2011 Mr. Pereira was Chief Financial Officerand later Chief Executive Officer of Technest Holdings Inc., a publicly quoted defense contractor. Prior to that,Mr. Pereira helped to develop several technology start ups and has over 10 years experience in the financial andoperational management of small cap public companies. He is a fellow of the Chartered Association of CertifiedAccountants in the UK and has an MBA from the Manchester Business School (UK) with a specialty in finance.
David Tunnell, Chief Technology OfficerMr. Tunnell is an expert in biometrics and cryptology and is the inventor of a variety of miniature technologies forremote distributed sensors. Mr. Tunnell has over 23 years of experience in developing high-technology solutions forthe US Government. He was the divisional director of 3D identification products at Technest Holdings Inc., from2003 to 2011. Prior to Technest, he served as an adjunct faculty teaching various advanced technology coursesat the National Cryptologic School while working with various intelligence agencies and later at L3Communications where he served as Director of Engineering. Mr. Tunnell earned a Masters in TechnicalManagement (MSTM) from Johns Hopkins University and a BSEE from the University of Tennessee.
Vincent Miceli, Chief Financial OfficerMr. Miceli has extensive experience in financial and operational management in both substantial private and public companies. Mr. Miceli was the Chief Financial Officer of Panolam Industries International, Inc from May 2006 to mid-December 2013. Prior to that, Mr. Miceli was the Chief Financial Officer of Opticare Health Systems, Inc, from 2004 to 2006. Mr. Miceli holds a BS in accounting from Quinnipiac College, an MBA from the University of Hartford. He is an
affiliate member of both the AICPA and the CT Society of Certified Public Accountants.
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Independent Board MembersMajor General David R. Gust, USA, Ret.General Gust presently does consulting work for his own company, David R. Gust & Associates, LLC. Between April 2007 andMay 2009, General Gust was the President of USfalcon, a privately-held company working with the U.S. Defense sector, primarilyin information technology. Previously, General Gust had served as the Manager for Federal Telecommunications for BechtelNational, Inc. from November 2004 to March 2007. Prior to that, he was the President and Chief Executive Officer of Technicaland Management Services Corporation from 2000 to 2004. General Gust retired from the United States Army in 2000 aftercompleting a career of 34 years of service. General Officer assignments included the Program Executive Officer,Communications Systems (PEO-Comm Systems), Program Executive Officer, Intelligence, Electronic Warfare and Sensors (PEO-IEW&S) and at Army Materiel Command, as Deputy Chief of Staff for Research, Development and Acquisition (DCSRDA).
Michael J. D’Almada-Remedios, PhDBetween January 2011 and September 2013 Dr. Remedios was Chief Information Officer for Arbonne International, a billiondollar global cosmetics company. From February 2009 to December 2010 he was a Vice-President at Expedia, Inc. and wasresponsible for all technologies, product development and technical operations for hotels.com. Prior to February 2009 Dr.Remedios was Chief Technology Officer for Realtor.com and Shopping.com, a subsidiary of eBay, Inc. At eBay he was amember of the eBay Inc. Technology Board for eBay, PayPal and Skype. Dr. Remedios recently joined software company,Swarm-Mobile. He has a PhD. In Computer Control and Fluid Dynamics from the University of Nottingham in England and aB.Sc. In Physics and Computer Science from Kings College, University of London in England.
Dan Sharkey Dan Sharkey was Executive Vice President of Business Development of ATMI, a publicly traded semi conductor company from2007 to 2014, and was responsible for expanding ATMI markets and long-term growth potential by identifying and delivering newstrategic and product opportunities. Mr. Sharkey joined ATMI as Chief Financial Officer in April 1990 and continued in that positionwith the additional responsibilities as Treasurer and Secretary until 2007. ATMI was sold to Entegris in 2014 for $1.15 billion. Beforejoining ATMI, Mr. Sharkey was Vice President of Finance for Adage, Inc., a publicly traded computer graphics manufacturer, from1987-1990. From 1983-1987, he was Corporate Controller for CGX Corporation a venture capital-backed, privately held computergraphics manufacturer that merged with Adage, Inc. in 1987. From 1978 to 1983, Mr. Sharkey worked as a Certified PublicAccountant in the Boston office of KPMG Peat Marwick. Mr. Sharkey earned a Bachelor of Arts degree in Economics andAccounting from the College of the Holy Cross in Worcester, Massachusetts.
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Advisory Board Members
Lawrence FlanaganMr. Lawrence Flanagan is President and Founder of New Tech Haven since January 2013 and was formerly theExecutive Dean at the University of New Haven College of Business. Flanagan is regarded as one of the mostaccomplished global marketing leaders in the country. Prior to his career in academia, he spent nearly threedecades in corporate America as an executive at MasterCard Worldwide, the Procter & Gamble Company andL’Oreal USA. As the global chief marketing officer at MasterCard, he managed a $1.5 billion budget, directedmarketing strategies in more than 50 countries and helped launch the company’s hugely successful, “Priceless”advertising campaign. He also established strategic partnerships with Major League Baseball, the PGA Tour andChampions League soccer in Europe and was part of the executive team that spearheaded MasterCard’s highly successfulinitial public offering in 2006.
Ken MoyMr. Ken Moy, was formerly senior vice president and Group Head of US Emerging Payments at MasterCardWorldwide. Moy has extensive experience in large-scale rollouts, partnerships, corporate development, strategicplanning, business administration and product management. He launched MasterPass, the firm’s digital walletsolution and important pillar to overall strategy, achieving over 25,000 online merchants, and wallet distributionwith over 20 financial institutions. He led an exclusive agreement with Google, Citibank and First Data to launchGoogle Wallet, the first commercially available mobile payment solutions. He also led an exclusive agreementwith Intel for access to embedded technology in Intel PCs to deliver enhanced security and user experience forelectronic ecommerce. Presently, Moy is Founder and President of Harvest Advisors LLC.
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