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@ pos Vision. To be the world’s leading provider of hardware, software, and ASP services for information capture and retrieval alongside card based payments at the transaction point of service. Complete Retail Solution. Call Centers. Point of Service. Credit Card Processor. Customer Service.
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@pos Vision To be the world’s leading provider of hardware, software, and ASP services for information capture and retrieval alongside card based payments at the transaction point of service.
Complete Retail Solution Call Centers Point of Service Credit Card Processor Customer Service Go Software Applications • Flexible Browser- • Based User Interface • Signature Capture • Smart card, MagCard, Proximity, Biometric • Pin Debit • Context Sensitive Content Crossvue Software and Services Audit Browser Access to data Loss Prevention Electronic Receipt With Signature
Full Range of Interactive Platforms iPOS TC Gemini Internet enabled Point-of-sale 3100 TX.C Interactive payment terminal Secure, flexible, intuitive customer interface. Touch sensitive color or monochrome. Flexible Electronic Cash Register integration. Content driven interactively via Services. Magnetic Swipe, Smart Card, Proximity, Biometric capable. MP3000 MX1000 Entry Point Signature Capture and EFT Device First wireless POS terminal with integrated bar code scanner
Polaroid Selected Customers/Partners
Backend Services Automate Business Functions The flexibility of the @pos interactive terminals enables the automation of a wide range of business functions performed alongside payments at the POS. Crossvue systems extend our content management capabilities and are marketed as either a software license or an ASP service. Examples of business functions our customers have automated with our products alongside payments are: • Wireless service contracts • Driver’s license signature and credit/debit payments • Bank account applications/forms • Instant credit and credit payments • Cash advance
@pos Today Case Study - Virgin Megastores Virgin Megastores are part of the Virgin Entertainment Group and operate 21 retail stores in major US cities. Virgin deployed @pos solutions in May of 2001. • Smart card loyalty program in conjunction with American Express • Color display for marketing and scrolling receipts • Crossvue Insight service to track effectiveness of loyalty promotions • Crossvue Resolve and signature capture for dispute resolution (planned Q2/Q3 2002) • PIN debit (planned Q2/Q3 2002) Selected Solution iPOS TC with M700 smart card reader
@pos Today Case Study - Federated Federated is a major department store chain with 457 stores. Major brands include Macy’s and Bloomingdale’s. Federated has over 30,000 POS locations Selected Solution • Signature Capture • Signature Retrieval System (SRS – predecessor to Crossvue Resolve) for dispute resolution at Federated call center • PIN debit to convert offline debit to online debit • Signature verification to deter associate fraud at the POS PenWare 3100 and SRS software
@pos Team • 80 team members 47 U.S., 33 Sri Lanka • 6 - Sales/Biz Dev • 5 - Marketing • 59 - Engineering • 10 - Operations/Acctg
@pos Team • John Wood, CEO • Former CEO & Founder of Keycorp, Australia • Chairman, Multos Smartcard Consortium • Llavan Fernando, CTO • 26 years of Technology Experience in industry • Matt Graves, CFO & VP Operations • 23 years, accounting, banking, corporate development experience • Dennis Kraft, VP – Sales • Former SVP – Sales for First USA/Paymentech • Scott Allan, VP – Business Development • 14 years of experience emerging technology companies
Build Strong Base for Growth and Profitability Sale of @pos products to all retail tiers – Go Software alliance Higher proportion of recurring revenue (Tier 3 and sale through indirect channels) Maximize return from technology investment (multiple products – single platform ) Leveraged Established Service Bureau and Integrate ASP Services Combine @pos access devices & Crossvue service businesses – Create and market hosted services for the information capture and retrieval alongside card based payments at transaction points of service Focus on automating existing business functions rather than creating new ones and partner with application VARs Objectives
Industry Value Chain Token & Access POP Equipment&Software Integration Trusted Services Backup&Storage • Access: • ATM • POS • Mobile • Intranet • Branch • Equipment: • Terminal • Device • Hosting • Software: • Cryptography • Filtering • CRM • Network Integration • System Integration • Security Consulting • Transaction processing • Call Centre • Loyalty program • Tele-marketing @pos priorities are equipment and software and trusted services
Worldwide Market Size @pos is participating in a large worldwide market for emerging platforms and services Token Equipment&Software Integration Trusted Services Backup&Storage $4.3 billion annual market $90 billion annual market $43 billion annual market $25 billion annual market $3.8 billion annual market Sources: FDC, Aberdeen 2001 Source: ICMA 2001 Source: Nilson 2001, Source: IDC 2001 Source: Gartner 2002 “In terms of raw market size, in the U.S. the payments business represents a $115 billion market for financial institutions, technology vendors and third-party service providers. On a global scale, the total market is nearly twice that size.” - Payments Revisited: Circa 2000, eONE Global White Paper, 2001.
Large Domestic U.S. Market Potential For Base of Strong Growth and Profitability $140B (Wal-Mart) $780 billion 15.5 billion trans. 160k stores 1.2 million POS Current Target Market TIER 1 155 merchants $140 billion 2.8 billion trans. 120k stores 360k POS TIER 2 470 merchants $800M (J. Crew) Additional Tiers available to @posthrough Go Software alliance. $610 billion 10 billion trans. 842k stores 3.0 million POS TIER 3 493,730 merchants $100M (Big Dogs)
@pos TodayInterfaced Transaction Network (existing @pos Marketplace) Database Payment Processor Mainframe In store Processor /Controller Win/NT Server LAN Internet POS Terminal
Extended @pos Marketplace Payment Processors Rita Server Small retailers connected by Internet CrossvueDatabase Small Retailers connected by PSTN Interface Software Internet Rita Server Large/Medium Retailer
Sale of @pos products to all tiers of retail For Base of Strong Growth and Profitability Access Devices Capture & Retrieve Software/VAR’s Integrate & Resell Service Bureau Information Storage • Signature-secured, info. Storage: • Receipts • Contracts • Instant credit • Pharmacy • Insurance • Checks • Shopper info. / preferences • Mobile phone applications • Delivery acceptance • Hosted services by Crossvue POSSoftware InventoryMgmt. Dial Terminals LoyaltySoftware Hospitality Go Software Rest.Mgmt. RetailBanking IntegratedTerminals Gov’tSolutions M.D.Office Go Software To @pos service bureau To Payment Processing
Unique Advantages: Equipment & Software @pos Products Traditional Providers • Features • Digital signature capture • Flexible payment options • Open architecture:Java and Windows CE • Large interactive display screen • Kiosk capability • Faster processor and more memory • Features • Limited payment options • Proprietary platforms
Unique Advantages: Trusted Services Traditional Providers • Features • Point-of-service information capture • Enterprise-wide data retrieval and analysis • Web-based n-tier architecture • Extensive use of Java and XML • Features • Traditional transaction processing • Large scale legacy platforms • Limited data handling
Services Opportunity: End-to-End Solution Access and analyze Information for new insight Capturing customer information Receipt Management Journaling Customer Server or @pos Data Center Customer Insight Fraud Prevention …through @pos terminals …through Crossvue
Identify opportunities in tier 1 that have high potential as tier 2 and 3 trusted service offerings Business Evolution Strategy Sets technology trends; adopts @pos devices and limited services Solutions such as… TIER 1 …are packaged as @pos services for tier 2 and 3 distribution Signature storage & retrieval Smart card loyalty TIER 2 Adopts @pos services and potentially devices TIER 3
Manufacturing Deployment ASP Connectivity Framework & Middleware Service & Maintenance Data Center @POS Technology Investment Operations Device Technologies Host Technologies Industrial Design Web base data access Circuit Design Biometrics System Software Data Mining Payment services Application Software Ad Services Integration Tools System Integration @pos Core Initiatives (Primary Revenue) Outsourced to @pos certified vendors (secondary revenue)
Establish direct sales for largest customers only; leverage channels and partnerships for tiers 2 and 3 Sales and Marketing Investment Tier 1 Sale of software and devices direct Tier 2 & 3 Sale of trusted services indirect Content Providers (VAR’s) Tier 2 (ISS, 360 Commerce, RSS, Innovation Assoc.) ISO’s / Alliances Tier 2 and 3 (Cardservice, Go, Amex) Regional Sales Regional Sales
Expense Plan Table describes the planned reduction in fixed operating cash expenses. Non-cash and revenue-related expenses (e.g. – depreciation & commissions, respectively) not included above.
Balance Sheet December 31, 2001 (Unaudited) --------------- ASSETS Total current assets $ 4,628,474 Property and equipment, net 867,228 Other long-term assets 97,235 ------------------- Total assets$ 5,592,937 ============= LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Total current liabilities$ 2,561,551 Capital lease obligations, non-current480,431 Deferred rent 95,119 Stockholders' equity: Series B convertible preferred stock 461 Series D convertible preferred stock - Common stock 9,575 Additional paid-in capital25,253,883 Accumulated deficit (22,808,083) ------------------- Total stockholders' equity (deficit) 2,455,836 ------------------- Total liabilities and stockholders' equity $ 5,592,937 =============
@pos History Performance and Timeline @pos Confidential
@pos TodayDefensible Patents and IP • Over 37 patents applied (Several with patent office action) • 4 Patents granted. • IP related to Secure payments and transaction. • Several breakthrough technology patents • Highly Secure touch and pen input encryption technology • Loss less compression for signature which minimizes storage requirements. • Signature verification algorithm which utilizes acceleration characteristics – which results small signature token size. • Visual development tools for interactive POS devices • Web enabled point of sale devices with dual channel connectivity Software, Hardware and System patents
iPOS TC Gemini Internet enabled Point-of-sale 3100 TX.C Interactive payment terminal MP3000 MX1000 Four products with 6 PCBs and four Operating systems being cleaned up to two boards and two Operating systems that can be configured for high end or low cost and fitted to any product The full circuit is a patented sub-circuit common to all other products Market first POS terminal with integrated bar code scanner @pos ObjectivesMaximize return from technology investment Base of Strong Growth and Profitability
@pos TodayiPOS TC and TX Internet Appliance bringing e-commerce to POS • Secure • Transactions: • Credit • Debit • Smart Card • Biometrics verification POS Portal • Customer Data Capture • Interactive, Targeted Ads, Promotions & Messages • Multimedia animation & movie clips • TCP/IP HTML