Iveda is a cloud video surveillance company that has developed Sentir, a cloud-based video management platform. Sentir allows video from any IP camera to be securely accessed from anywhere via a web browser or mobile app. Iveda's strategy is to license Sentir to telecom and internet service providers to generate recurring revenue streams, and it has signed initial contracts with two telecom companies. The presentation outlines Iveda's market opportunity in video surveillance, Sentir's capabilities, revenue model, management team, and path to profitability through additional provider partnerships.
2. This presentation contains forward-looking statements that represent our beliefs, projections and predictions
about future events. These statements are necessarily subjective and involve known and unknown risks,
uncertainties and other important factors that could cause our actual results, performance or achievements,
or industry results, to differ materially from any future results, performance or achievement described in or
implied by such statements, including statements relating to: (a) Iveda’s future revenue, expenses, margins,
profitability, net income, taxes, adjusted net income, adjusted operating expenses and other measures of
results of operations; and (b) Iveda Solution's ability to capitalize on industry trends. Actual results may differ
materially from the expected results described in our forward-looking statements, including with respect to:
development and acceptance of Iveda’s services; competitive risks, including competing technologies,
products and services, and the competitive activities of our competitors; risks associated with the introduction
of new products and services; risks inherent in strategic relationships, and technology and service integration
efforts. The preparation of our financial statements and forward-looking financial guidance requires us to
make estimates and assumptions that affect the reported amount of assets and liabilities and the reported
amounts of revenues and expenses during the reported period. Actual results may differ materially from
these estimates under different assumptions or conditions.
Iveda assumes no obligation to update any forward-looking statements or information, which are in effect as
of their respective dates. Due to the risks, uncertainties and assumptions inherent in forward-looking
statements, prospective investors in the Iveda Solutions' securities should not place undue reliance on these
forward-looking statements.
2
FORWARD LOOKING STATEMENT
3. COMPANY STATISTICS
3
Share Statistics Cap Structure
Trading Symbol (OTC) IVDA Cash & Restricted Cash $1.7M
Stock Price (8/30/14) $1.18 Long Term Debt $3.6M
Shares Outstanding 27.3M Shareholder Equity ($2.3)M
52wk Range $1.08 - $2.30
Financials (TTM)-
3 Month Avg. Volume 4,610
Legacy
Warrants/Options 3.7M / 5.7M Revenue $3.3M
Fully Diluted Shares 36.7M EBITDA ($5.9)M
Insider Ownership 32.8% Operating Cash Flow ($4.9)M
Market Capitalization $32.2M EPS (per share) ($0.27)
Enterprise Value $35.7M
Other
Full-time Employees 50
Fiscal Year Ends Dec 31st
Public Accounting Firm Albert Wong & Co.
Website www.iveda.com
Corporate HQ Mesa, AZ
Source: S&P Capital IQ
4. INVESTMENT HIGHLIGHTS
Large & Growing Market
− IP Video Surveillance & VSaaS sales are expected to increase at a 37% CAGR over
the next six years.
Disruptive VSaaS Innovative Technology
− Sentir™ video management platform is designed to work with any device, anywhere—and can easily be
deployed on the public or private cloud
− Flexible platform is easy to use, highly scalable and requires minimal set up and maintenance
Unique Business Model
− Strategy of licensing a scalable software platform through the reseller/service providers looking for
additional monthly recurring revenue streams (e.g. ISPs, telcos) allows for greater scale and more rapid
adoption. Branded or white label cameras also available.
Signed Contracts Provide Path to Profitable Growth
− Iveda has signed contracts w/ two telcos & is in negotiations with several
domestic and international resellers/service providers
4
Iveda is a leader in harnessing the cloud to provide innovative IP video
surveillance and Video Surveillance as a Service (VSaaS) solutions.
#1
#2
#3 High Margin Software Recurring Revenue Model
#4
#5
− Projecting 85% gross margin on software licensing business vertical
5. MARKET OPPORTUNITY
5
Sources: IDC, Allied Market Research
$38.6B
Estimated CAGR for global
sales for IP video surveillance
and VSaaS from 2013-2020
37%
$18.7B
$57.3B
Global Cloud Software Revenue Estimates
6. User Friendly
Customers can securely
watch live or recorded
video from multiple
cameras anywhere in the
world with one log in from
their web brower or mobile
app.
No Hardware
Because video footage is
stored in the cloud,
customers don’t need a
Digital Video Recorder.
Easy to Deploy
Sentir eliminates
infrastructure management
and maintnance and
support burdens because
every aspect is controlled
by the service provider.
Devices are Plug and Play.
Camera Agnostic
Iveda’s firmware enables
Sentir to be compatable
with any IP-enabled
camera.
6
Cloud-based video management platform
7. ENDUSER
APPLICATIONS
7
Sentir’s flexibility and cost-effectiveness provides an almost endless
number of applications.
Home Small & Medium Businesses
(SMBs)
Enterprise Government
8. SALES STRATEGY
8
Data Centers
Telcos
ISPs
Cable Service Providers
Resellers/Service
Providers End Users
Home
SMBs
Enterprise
Government
9. STRATEGIC BENEFITS
9
For Iveda For Resellers/Service Providers
Reach
Working with reseller/service providers with
millions of customers allows Iveda to efficiently
maximize its sales efforts.
Scalability
Since the reseller/service provider will handle
billing, hardware distribution, and in most cases
hosting Sentir on their cloud, Iveda can quickly
grow its business without having to make
prohibitive investments in back office systems
and infrastructure.
Value Add
Sentir provides an easy way for resellers to
generate an additional revenue stream from
their existing customer base or attract new
customers by offering a complementary
services that enhances their current offerings..
Simple And Cost-Effective
Because Sentir is in the cloud and device
agnostic, it is easy to deploy and requires
minimal capital investment.
Pay Per Activation Model
No up front fees and immediate positive cash
flow to reseller/service providers is an easy
purchase decision and builds annuity for Iveda.
Infrastructure Utilization
Sentir resides within the resellers data center
allowing them to increase revenues for
bandwidth and storage.
10. REVENUE MODEL
10
Resellers are expected to charge their customers $10-$20/per
camera/month for Sentir video surveillance management
functionality.
The Company generates additional revenue from sales of its
branded cameras. The reseller has storage and bandwidth up
sell opportunity from the base fee they are charging their
customer.
Gross Margin
85%
25%
11. ILLUSTRATIVE FINANCIALS
11
First Year
Camera
Activations
Avg.
Camera
Revenue
First Year
Camera
Revenue
Monthly
Sentir
fee per
Camera
End of 1st
Year Sentir
Fee Annuity
10,000 $100 $1,000,000 $3 $360,000
100,000 $100 $10,000,000 $3 $3,600,000
Small Telecom
20MM Subscribers
Large Telecom
200MM Subscribers
13. CORPORATE ROADMAP
13
With the launch of Sentir in 2014,
Iveda is on course to execute on its
licensing strategy culminating with an
up list to Nasdaq.
PPaatthh ttoo
PPrrooffiittaabbiilliittyy
SSiiggnn AAddddiittiioonnaall
RReesseelllleerr
AAggrreeeemmeennttss
NNAASSDDAAQQ UUpplliisstt
AAcchhiieevvee
PPrrooffiittaabbiilliittyy
EExxiissttiinngg RReesseelllleerrss
SSeennttiirr LLaauunncchh
14. FINANCIALS
Note: Iveda unveiled its new strategy of partnering with telecom resellers
in connection with the launch of Sentir in 2Q14. Past and some future
revenues are legacy project business.
Iveda Legacy Revenues
14
Iveda Net Income (Loss)
(Millions) (Millions)
15. CAPITALIZATION OVERVIEW
15
(millions)
(As of August 30, 2014)
Notes:
Short-term debt is arranged through three banks with annual interest rates ranging from 1%-3.26% and maturities
through September 2014.
In December 2013 – May 2014, Iveda raised $3.6 million in convertible debentures in an offering that was
oversubscribed by $600,000. The notes mature in three years, bear an annual interest rate of 9.5% and can be
converted into common stock anytime at $1.50/share.
16. MANAGEMENT TEAM
David Ly
Chairman and CEO
Bob Brilon
President and CFO
• 10 years cloud video hosting
technology development and go-to-market
within the security surveillance
industry;
• 14 years Technical Sales and Sales
Management wireless data, cellular,
IT, & security surveillance
•30 years’ experience as a senior executive
at both public and private technology
companies
•Public company experience includes
InPlay (NASDAQ:NPLA); Duraswitch
(NASDAQ:DSWT); Rental Service Corp.
(NYSE:RRR) and Go-Video (AMEX:VCR)
16
17. ADVISORY TEAM
Dr. Joseph Lee
Cloud Architect
Dr. Eric Chen
Cloud Storage
• Cloud computer expert
• Currently Chief Technology Officer at
21Vianet, largest carrier neutral data
center in China
• Senior executive experience at
Microsoft, Lucent Technologies,
Exxon and Owens Corning
• Ph.D. in Electrical Engineering at Iowa
State
•Extensive experience in cloud storage
and data services technology; Big Data
storage architecture expert
•Founder and CEO of California-based
ProphetStor Data Services
•Senior executive experience at
FalconStor Software (NASDAQ: FALC),
IBM
•Ph.D. in Computer and Information
Sciences at Ohio State University
17
18. INVESTMENT HIGHLIGHTS
Large & Growing Market
− IP Video Surveillance & VSaaS sales are expected to increase at a 37% CAGR over
the next six years.
Disruptive VSaaS Innovative Technology
− Sentir™ video management platform is designed to work with any device, anywhere—and can easily be
deployed on the public or private cloud.
− Flexible platform is easy to use, highly scalable and requires minimal set up and maintenance
Unique Business Model
− Strategy of licensing a scalable software platform through reseller/service providers looking for
additional monthly recurring revenue streams (e.g. ISPs, telcos) allows for greater scale and more rapid
adoption. Branded or white label cameras also available
Signed Contracts Provide Path to Profitable Growth
− Iveda has signed contracts w/ two telcos & is in negotiations with several
domestic and international resellers/service providers
18
Iveda is a leader in harnessing the cloud to provide innovative IP video
surveillance and Video Surveillance as a Service (VSaaS) solutions.
#1
#2
#3 High Margin Software Recurring Revenue Model
#4
#5
− Projecting 85% gross margin on software licensing business vertical
20. 20
True Plug & Play
• Easy to set up
• Excellent video quality at an
affordable price
• See all your cameras on a single
dashboard
• View from your computer, tablet or
smartphone
• Cloud hosted, 24/7 Web access to
live & recorded video
• Off-site cloud storage for video
security