2. Safe Harbor Statement
Management’s prepared remarks contain forward-looking
statements which are subject to risks and uncertainties and
management may make additional forward-looking statements in
response to your questions. Therefore, the company claims the
protection of the Safe Harbor for forward-looking statements that
is contained in the Private Securities Litigation Reform Act of 1995.
Actual results may differ from those discussed today, and therefore
we refer you to a more detailed discussion of the risks and
uncertainties in the company’s filings with the Securities and
Exchange Commission.
3. The Company
Lattice has been providing secure communications
and information technology since 1973.
Provides communications technology for high security
installations such as correctional facilities.
Provides a suite of cloud based services enabling
smaller facilities access to technology traditionally only
available to large facilities.
4. U.S. Market Overview
2.3M Inmates
Growing at 3% per annum
Telecom funding source
Federal, State, and County
$650 - $750 Telecom Revenue/inmate
$2.0B + Market
2.0B from Telecom revenues only
Additional revenue from other value added
services
6. Competitive Landscape
Small Regional Service Providers
Solid regional relationships
Inferior Technology
Lattice Resells to some providers
Large National Service Providers
Focusing on 500+ bed facilities
Technology and service is inconsistent
Losing smaller facilities as customers
7. Business Model – US Market
Exclusive Rights to Facility
Revenue sharing with Facility
Provides extra revenue for strapped state budgets
Range from 20-60%
Up-sell Leading Features & Products Provides customer stickiness
Ability for family members to credit inmate’s call account
Video Visitation
Kiosk for cash management and value added services
Integrated jail management software solution (difficult to replace)
Introducing Secure Corrections Cloud (2013)
8. Sales and Marketing
Direct Sales to Facilities
Local sales presence
Expand upon established local concentration
Referrals important for winning county customers
Indirect Wholesale & Technology License Sales
Utilized by channel partners for larger facilities and
State bids
For out of direct sales region
Builds Lattice footprint and brand recognition
9. Foreign Market Overview
Competitive Landscape
Incumbent Telcos primary competition
Legacy payphone model (collect calling)
New technology yet to be introduced
Lattice has Unique Technology Advantage
Lattice technology provides cost reductions
Lattice Model provides enhanced revenue streams
Lattice technology provides enhanced security and
investigative tools
10. Foreign Market Overview
Business Model
Technology sales/license revenue
Transaction revenue
Services revenue
Current Foreign Sales Pipeline
• Asia
• Israel
• U.K.
• Belgium
• Canada
• Mexico
• India
• Caribbean
11. Foreign Market Overview
Canadian Market
Awarded four installations
All 4 being implemented in 2013
Partnered with Telus Canada for larger provinces
Smaller facilities partnering with Wymactel
U.K. Market
First site operational in Gibraltar (2011)
Successful trial completed with Sodexo Justice Services
90,000+ inmate potential in UK
13. Secure
Secure Communication Layer
ICON will consist of five major
components:
• Products and Services management
• Customer Information Database
• Payment Processing
• Accounting/Billing
• Customer Care
ICON Core
All communication between payments and
services will utilize ICON’s Secure
Communication Layer. Outside development
firms will have standard interfaces to utilize
Integrated Corrections Operations Networks (ICON)
Communication
ICON
Application
Management
ICON will provide centralized database
management and payment capability.
Utilizing the a central core engine will
allow multiple software applications
to reuse software processes saving
development time and producing far
more efficient business practices.
Jail Management
System
14. Secure
The ICON JMS includes the
following features:
•Reporting
•Scheduling
•Multi-Facility/Multi Agency
Integration
•Special Diet/Meal Count
•Workflow
•Biometrics
•Booking
•Trust Accounting/General Ledger
•Medical Records
•Incident Reporting
•NCIC Background screening
Communication
ICON
Application
Management
The ICON Jail Management System
(JMS) is a key component to the ICON
core. The JMS stores and manages
correctional facility processes, inmate
booking, inmate information, and
trust accounting
Jail Management
System
ICON Jail Management System
15. Secure
Products and Services managed and
accounted for by ICON
Communication
PIN Debit and PPC
Phone Accounts
ICON
Application
Management
Jail Management
System
16. Secure
Centralized Customer Database
Communication
A centralized customer database will
facilitate account management across all
services and payment methods. It will
provide simple methods to manage all
customer information to take payments and
deduct funds for services provided. The web
portal will aloow friends and families to
manage account information and transfer
funds between accounts.
Payment methods that will access the
customer database:
• Call Center Software/Reps
• Kiosks
• Web Payment Portal
• IVR
Products & Services accessing the customer
database:
• Commissary
• Inmate E-device
• PIN Debit calls
• PPC calls
• Debit Card Calls
• Voicemail
• Email
• Video Visitation
ICON
Application
Management
Jail Management
System
17. Secure
Centralized Payment Processing
Communication
A centralized payment processing solution
will eliminate the need to reproduce
payment methods for new products and
services. All payments will come into the
ICON core, process through Authorize.net
and then be distributed to the appropriate
accounts for use. Centralized payment
processing greatly reduces the risk of fraud
and simplify’s accounting processes.
ICON’s inbound payment methods:
• Call Center Software/Reps
• Kiosks
• Web Payment Portal
• IVR
Products & Services accessing ICON’s
payment outputs:
• Commissary
• PIN Debit calls
• PPC calls
• Debit Card Calls
• Voicemail
• Email
• Video Visitation
ICON
Application
Management
Jail Management
System
18. Secure
ICON Customer Care
Communication
ICON’s customer care module will be built
on a web based 3-tiered user access model.
Based on usernICON and password, the
system will provide support for CSR’s, Jail
customers or friends and families to report,
track, and resolve any trouble related to our
products and services. The ICON IVR will
provide automated phone support for
friends and families as well as inmates to
access 24X7X365
Friends and Family problem resolution:
• Dropped Calls
• PPC Account balances
• Payment disputes
Jail customer problem resolution:
• Loss of service
• Inmate kites
• Billing/Commission Inquiries
Inmate problem resolution
• PIN Debit/Commissary Accoutn balances
• Dropped Calls
• Payment Inquiry’s
ICON
Application
Management
Jail Management
System
19. Secure
ICON Accounting
Communication
Aggregation of all customer and payment
transactions will provide a single interfaceall
accounting functions. ICON accounting will
integrate seamlessly into most standard
acounting/business software packages such
as quickbooks. Automated and accurate
reporting capability will be provided in a
flexible and user friendly interface. The
ICON accounting module will be responsible
for all of the following accounting functions:
• Facility commissions
• Revenue Reports
• Profitability Reports
• Revenue assurance
• Taxation
• Rates/Prices
• Refunds
• Cost tracking
ICON
Application
Management
Jail Management
System
21. Investment Highlights
Rapid expansion of the Company’s service and technology
sales to drive overall growth and margin improvement.
Lattice offers industry leading proprietary technology to
traditionally underserved area of the market—small and
midsized correctional facilities.
International expansion with key partnerships growing sales
and margin growth while increasing the Company’s
footprint.
CAGR of 90% over the last 4 years. Early stages of growth
potential.
