Investor Presentation

Transcription

1 Investor Presentation

2 Symbol: VCT Exchange: CSE Shares Issued (Post Merger): 95,801, 907 Industry: Supplier of technology solutions to major defense contractors Established:1989 Revenue (2013): US $34M USD EBITA (2013): US $625K USD Website:

3 Velocity procures, customizes and delivers IT products to meet the needs of the world s major defense contractors. Products are procured from over 400 vendors. Velocity has strategic partnerships with elite suppliers such as Apple, Cisco, Dell, IBM, Intel, HP, McAfee, Microsoft, Sony, Symantec. Customers include major defense contractors such as Lockheed Martin, Boeing and NASA.

4 In 2013 Apple dramatically reduced the number of authorized government resellers of Apple products from 3500 to 30. Velocity is part of this exclusive new club of 30 tier 1 government resellers. All non-tier 1 government resellers must buy Apple products from tier 1 resellers. Prior to obtaining their tier 1 designation, Velocity had revenue from Apple products of $750,000 in 2011 and $1.4 million in Since receiving the tier 1 status Velocity has secured 12 Apple contracts valued at over $16 million.

5 Apple Dell IBM HP Microsoft Sony VMware Symantec McAfee Cisco Eaton Tier 1 Reseller Premier Partner Server Business Partner Rational Preferred Partner Specialist Value Added Reseller Authorized Reseller Enterprise Solution Provider Registered Partner Premium Solution Provider Select Certified Partner Power Advantage Partner

6 Lockheed Martin JPL (NASA) Boeing Northrop Grumman MD Procurement Office General Dynamics AAI SAIC Mantech Alion Science

7 Apple will be a significant driver of organic growth. This partnership will insulate the company from changes in federal defense spending. Velocity has recently secured: A four year, $14 million contract (with a one-year extension option) with Lockheed, NASA, JPL, DICE. A $2 million contract with National Science Foundation as a direct result of the new Apple Tier 1 Reseller Program. In General, the penetration of Apple products in the enterprise and government space is still at its very early stages, leaving a huge opportunity for Velocity in this market.

8 Prior to August 2013, Velocity s gross margin with Lockheed Martin Limited (the company s largest customer) was capped at 4.75% as per an existing agreement. This margin cap has now been removed, paving the way for significantly increased margins with this key client. The company is also developing proprietary solutions for asset tracking. Velocity has identified several acquisition opportunities, with a focus on acquiring a company that currently has level I and level II security clearance. An acquisition of this nature would allow Velocity to target contracts with current and prospective clients that require these levels of clearance.

9 Adam Radly, CEO Adam has been the CEO of several companies. Founder and CEO of ISIS Communications. At ISIS, Adam increased revenue to $22 million. Adam was key in the raising of $50 million via an IPO and an additional $45 million in a subsequent offering for ISIS. ISIS (now Staging Connections) has revenue of $190 million & ebitda of approx $26 million. Adam has also established 2 additional startup companies and completed eight acquisitions.

10 Bob Bates, CFO (CPA, CVA, CFE) Bob has over 20 years of accounting experience as a Controller and CFO in various industries from startups, to billion dollar companies. In addition, Bob has worked at KPMG and has had a key role in several IPO's and reverse mergers.

11 Chip Hackley, Director (MBA) Chip has been a Director or CEO of several public and private companies over his 20+ year career in finance. Currently, Mr. Hackley is CEO of Hermosa Capital Management which specializes in raising capital for all financial transactions with an emphasis in reverse mergers. Mr. Hackley has an MBA in finance from Colorado State University.

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13 Investor Relations Phone: 1(888) Copyright Velocity Corp June 2014