Oxys stonegate deck august 2014 redchip

1. OxySure Systems, Inc. (OXYS)
Corporate Presentation
August 2014

2. 2
Forward Looking Statements
The following may contain forward-looking statements that involve risks and uncertainties, including uncertainties associated with the medical device industry. Except for the historical information contained herein, the matters set forth in this communication, including statements relating to our growth strategy, financial results, product approvals, and development programs, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. You should not put undue reliance on any forward-looking statements. Important factors that could cause actual performance to differ materially from the forward- looking statements we make include: range of treatment options, clinical applications, and market acceptance of products and other risks detailed from time to time in our filings with the Securities and Exchange Commission. Our actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors.

3. 3
Introduction
Medical Device Company Mass markets
•
Business
•
Consumer Launch product
•
OxySure Model 615
•
FDA approved, OTC
•
CE Marking approved
Oxygen from Powder
Dry, Inert, Safe: Oxygen on demand
Ready Market AED Companion Market
•
US: 2 million unit installed base, growing 8% annually
•
Worldwide: 3 million unit installed base, growing 10% annually

4. 4
OxySure Model 615: It’s About Time.TM
•
Non-Compressed Source
•
No Training required
•
Safe
•
No Prescription Required
•
Lightweight
•
Disposable Cartridge
•
Easy Operation
•
6 liters per minute, 15-20 minutes
•
99% + Medical oxygen
•
Rest is moisture
Advantages
Benefits & Features
•Safety
•No maintenance required
•No hydrostatic testing required
•Can be shipped "rescue ready"
•No licenses or permits required
•Ideal AED companion

5. 5
We’re Saving Lives!
2,500+, and counting!

6. 6
Where is OxySure needed?
•
“Bridging the Gap”
•
Gap = Emergency Onset  Arrival of First Responders
•
USA Today: Gap is 6 - 15 Minutes
•
AEDs Address This Gap
“OxySure enables a loved one, bystander or even the person himself to provide oxygen while awaiting the arrival of emergency medical responders.”
Dr. Vincent Mosesso, University of Pittsburgh Medical Center Founder, Sudden Cardiac Arrest Association (SCAA)

7. 7
Just like AEDs…
–
Average Price: $1,500 (started in $5,000 range)
–
Batteries and pads replaced every 2 years ($400)
USA, approx. 2 Million units – Growing approx. 8.8% p.a. $1.7 Billion in 2015, USA only ROW, approx. 3 Million units – Growing approx. 10% p.a.
*Rise in demand for AEDs from alternate care and public access segments fueled by Legislation:
(1) Cardiac Arrest Survival Act (CASA) (2) State Mandates; and Increasing awareness.
Automated External Defibrillator (AED):
Units sold and pre-positioned since 2001:

8. 8
Just like AEDs…
Except… 300x more likely to need
Oxysure vs. AED!

9. 9
Problems w/ Existing Emergency Oxygen
•
Compressed Cylinders
–
Explosion hazard
–
Heavy
–
Expensive to purchase and maintain
•
Chemical Generators
–
No widespread consumer application
–
Produces high heat
–
Explosion hazard
–
Highly toxic
•Costs
–Range $369 - $899 (OxySure Model 615 - $349)

10. 10
•20,000,000 OSHA Compliant Buildings
•116,000,000 Homes and Apartments
•7,000+ MRI Centers
•POC Markets, Alternate Sites
•100,000 K-12 Schools
•6,000,000 Residential Swimming Pools
•925,000 Restaurants
•350,000 Manufacturing Facilities
•325,000 Places of Worship
•16,000 Golf Courses
•Airports, Public Use Facilities, Sports Facilities
Where is OxySure Needed?
“Placement” Markets

11. 11
Who Needs OxySure?
•
Cardiovascular Disease
–
40 Million Diagnosed
–
40 Million Undiagnosed
•
Chronic Obstructive Pulmonary Disease (COPD)
–
16 Million Diagnosed
–
14 Million Undiagnosed
–
1.6 Million on Long Term Oxygen Therapy (Back-up)
•
Asthma – 22.3 million
•
General medical & civil emergencies
•
Travelers to higher altitudes
•
Private pilots – 400,000
•
Over 50
“At Risk” Markets

12. 12
How Do We Sell?
OxySure
Distributor
Reseller
Strategic Accounts Teams
Sales/Marketing Support
Marketing support:
Trade shows Media
National Safety Congress, ECCU (US) Industrial Hygiene News
Medica (Germany) Sports magazines
RETTMobil (Germany) Education newsletters
Hospitalar (Brazil) Online

13. 13
Where Are We Today in US?
Municipalities
Manufacturing/Commercial
Churches/Places of worship
Colleges
•U Texas, Purdue, Michigan State, etc.
K-12 education
•40 States+

14. 14
Where Are We Today Outside US?
Others pending
Hong Kong, Macau, Chile
Netherlands, Belgium, Luxembourg
Australia, New Zealand, UK
Brazil, Turkey, South Africa

15. 15
Manufacturing/Operations
GMP / ISO 13485
Scalable
100% Made in USA

16. 16
Product Diversification
Model 615
Wall boxes
Resuscitation bags
Thermal bags
Automated External Defibrillators (AEDs)
Accessories

17. 17
Future product development
OxyPak Military Special Forces / Commercial First Responders
Self-Contained, Self-Rescuer Solution
Mining / Navy markets (30 M + units)
Consumable Flex-Pak Sports & Recreation (100 M + units)
Aviation
Lav units / specialty applications
Automobile market “Drop down” for deployment in any accident
Wound care / Skin care markets

18. 18
Key Facts
Share Statistics
Trading Symbol.............................Other OTC:OXYS
Stock Price (as of 5/28/2014)…..........................$0.84
Shares Outstanding……..……………..…………25.97M
52wk Range...………………………………..$0.51- $0.90
3 Month Avg. Volume...…….…………………...19,013
Market Capitalization..….………………….…$21.81M
Enterprise Value..…………………................$22.09M
Financials
Revenue (TTM)……..……………………………..$1.92M
Operating Income (TTM) ………………...….($0.56K)
Cash Flow from Operations (TTM)…….($906.42K)
EBITDA…………………………………………....($427.38K)
EPS (TTM)……………………………………..………($0.03)
Cap Structure
Cash on Hand…………..…………………….….…$150.67K
Quarterly Cash Burn Rate…………………..........$200K
Total Debt……………………………...................$684.93K
Shareholder Equity…………..……….….….…....$2.77M
Other
Full-time Employees………......................................24
Fiscal Year Ends………………....…………….December 31
Website…………………………………………....oxysure.com
Corporate HQ………………..……………………...Frisco, TX
0.55
0.75
0.95
1.15
1.35
1.55
OxySure Systems, Inc. (OTCPK:OXYS) - Share Pricing

19. 19
FY 2013 Financial Highlights
•
Revenues were $1.8 million, up 566%
•
Gross profit up 55.4%; gross margins up to 72.8% from 46.8%
•
G&A expense was down 3%
•
Notes payable down 26.3% to $349,975
•
Working capital increased $2,173,647 to a surplus of $747,473
•
Current ratio up to a healthy 1.88
•
Stockholder equity increased by $2,339,709
•
Net loss per share down to $.03 from $.06 last year

20. 20
FY 2013 Financial Results
47
$127
$270
73
$1,310
$1,800
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Gross margin (%)
Gross profit
Revenues
FY 2012
FY 2013
Up 566%
Up 934%
Up 55%
Y/Y Results – FY13 v FY12 (in thousands)

21. 21
FY 2013 Financial Results
14
$(1,426)
$916
$879
658
$748
$1,423
$2,352
(2,000)
(1,500)
(1,000)
(500)
-
500
1,000
1,500
2,000
2,500
3,000
Cash
Working capital
Stockholder
equity
Total assets
FY 2012
FY 2013
Y/Y Results – FY13 v FY12 (in thousands)

22. 22
2Q 2014 Financial Highlights
•
Revenues were $678,111, up 42%
•
Gross profit up $89,656 or 27.7% to $413,255
•
Other income up 123% to $42,465
•
SG&A up 26% to $689,248
•
Net loss per share flat at $.01 for the quarter
•
Model 615 shipments up 65%

23. 23
2Q 2014 Financial Results – c
68
$324
$476
61
$413
$678
-
100
200
300
400
500
600
700
800
Gross margin (%)
Gross profit
Revenues
2Q2013
2Q2014
Up 42%
Up 27%
Down 10%
YOY Results – 2Q14 v 2Q13 (in thousands)

24. 24
Income Statement Trends
($ in thousands)
Annual
Q1
Q2
Q3
Q4
Annual
Q1
Q2
12/31/12
3/31/13
6/30/13
9/30/13
12/31/13
12/31/13
3/31/14
6/30/14
FY12
FY13
FY13
FY13
FY13
FY13
FY14
FY14
Sales
270.4
240.4
476.1
545.8
538.0
1,800.3
356.2
678.1
YOY % Growth
46 %
747 %
655 %
428 %
612 %
566 %
48 %
42 %
Cost of Goods Sold
143.8
53.2
152.5
111.1
173.6
490.3
205.6
264.9
Gross Profit
126.6
187.2
323.6
434.7
364.5
1,310.0
150.6
413.3
Gross Margin%
46.9%
77.9%
68.0%
79.6%
67.7%
72.8%
42.3%
60.9%
Operating expense:
Research/Developmt
25.8
36.7
183.4
134.4
1.5
356.0
1.5
276.0
SG&A
1,239
364.0
259.0
344.2
475.0
1,442.1
433.7
413.3
Operating Income
(1,138.2)
(213.4)
(118.8)
(43.8)
(112.0)
(488.1)
(284.6)
(276.0)
Operating Income%
(420.9%)
(88.8%)
(25.0%)
(8.0%)
(20.8%)
(27.1%)
(79.9%)
(40.7%)

25. 25
Target Growth Metrics
•
US Automated External Defibrillator (AED) Market
•
US Base of 2 million units with 8% annual growth
•
ROW Base of 1 million units with 10% annual growth
•
10% companion OxySure Model 615 market share
•
US Base of 200,000 units growing 8% annually

$50 million revenues with 60% gross margins

ROW: Base of 100,000 units growing 10% annually

$20 million revenues with 45% gross margins

Worldwide base of 300,000 units growing 8.68% annually

$70 million revenues with 55% gross margins
•
Beyond AED companion market, “fire extinguisher market,” “At Risk” markets

$100+ million revenues with 55% gross margins

26. 26
Growth Strategy Next 3-5 Years
•
Grow distributors; US + ROW
•
Grow strategic accounts teams
•
Pursue legislation / mandates
•
Aggressively pursue 3 million+ unit ‘AED companion’ market, and 100 million+ unit general placement markets
•
Services
Grow Placement Markets
Grow At Risk Markets
New Vertical Mass Markets
•
Pursue insurance reimbursement (Medicare, private)
•
Execute rolling short/long form commercial campaign(s) targeting 100 million+ US and 500 million+ ROW ‘at risk’ customers
•
Services
•
Military
•
Mining
•
Aviation
•
Sports/Recreation
•
Skin care
•
Wound care
•
Automotive
+ Strategic Alliances

27. 27
Summary
•
Rapid growth mode
•
Great market position
•
Intellectual property
•
First mover advantage
•
Key regulatory approvals in place
•
Large growing and natural markets
•
“No brainer” strategy to piggy back off of AED growth
•
Validated lifesaving emergency treatment
•
Future products, verticals and markets

28. 28
OxySure Systems, Inc.
OXYS: OTCQB 10880 John W. Elliott Road, Suite 600 Frisco, TX 75034 USA Tel: (+1) 972-294-6450 info@oxysure.com www.OxySure.com
Stonegate Securities, Inc. Renmark Financial Communications, Inc.
(214) 987-4121 (416) 644-2020
investors@oxysure.com Bettina Filippone: bfilippone@renmarkfinancial.com
http://www.stonegateinc.com/ John Boidman: jboidman@renmarkfinancial.com
www.renmarkfinancial.com/
Contact Information

29. 29
Appendix

30. 30
OxySure Leadership
•
Julian T. Ross, MBA – Chairman & CEO

OxySure founder, technology developer (holds 9 patents) and CEO since inception

25+ years experience in technology, manufacturing, and finance

Managed development of our production capabilities, partnerships and alliances, managed the development of sales, distribution and licensing partnerships, raised in excess of $14 million in debt and equity to fund operations, and took OXYS public in 2011 through an S-1 registration with the Securities and Exchange Commission.

Other experience: Roll-up, technology companies; $315 million high yield debt offering (Merrill Lynch/Salomon Brothers in lead, plus Deutsche Morgan Grenfell, Nomura Securities)
•
Jeremy “Jerry” Jones, Director

35+ Years in healthcare leadership

Former Chairman/CEO of Apria Healthcare (sold to Blackstone for $1.7 billion)

Chairman of On Assignment (NYSE: ASGN), $1.6 billion healthcare services leader
•
Vicki Jones, MBA, Director

30+ years experience in management, sales, and customer service , in both B2B and B2C spaces.

SVP for AT&T, runs $18 Billion TV and Internet business; leads a team of 18,000 people

31. 31
OxySure Leadership
•
Dr. Vincent Mosesso, Jr., MD, FACEP – Advisory Board

Founder of Sudden Cardiac Arrest Association (SCAA)

Medical Director for Pre-hospital Care at the University of Pittsburgh Medical Center (UPMC)

Associate Professor of Emergency Medicine at the University of Pittsburgh School of Medicine

"Physician of the Year," 1998, Pennsylvania Emergency Health Services Council
•
Dr. James R. Winn, MD – Advisory Board

38 Years’ experience in the healthcare industry, both as a policy maker and as a physician in practice

Former Chief Executive Officer of the Federation of State Medical Boards (FSMB) of the United States
•
Dr. Thomas D. Franklin, Jr. – Advisory Board

40 Years’ experience in medical research, education and leadership

Sr. Scientific Advisor to North Texas Enterprise Center for Medical Technology

Former President of the Texas Health Research Institute
•
Dr. Jonathan E. Burke, DMD – Advisory Board

Significant experience in hyperbaric oxygen therapy and received an Attending Hyperbaric Medicine Certificate in 1996

Oral and maxillofacial surgeon for the Philadelphia Flyers and Phantoms professional hockey clubs since 1994
•
Dr. R. Dean White, D.D.S., M.S. – Advisory Board

35+ Years’ experience in medicine and private practice

Past President of the American Board of Oral & Maxillofacial Surgeons

32. 32
Recent Milestones
2005 – 2014 FDA approval (OTC), CE Marking, ANVISA (Brazil), MOH (Israel)
2010-2006 Nine Patents Issued; Several Pending
2008 GSA contract approved
2013-2012 Recent Distribution Contracts: Medizon, Aero Health, Grainger; Systemax; AED Professionals
2010 United Nations Vendor Approved
2010 Expanded into Brazil, Turkey and South Africa
2011/2 Went public via S-1 (OTCQB:OXYS); DTC Approval; DWAC Approval

33. 33
Recent Awards
2011 MedVentures Award
2010 Lone Star Award for Innovation in Respiratory Technology
2010 IMPACT Awards
2008 World’s Best Technologies
2008 Tech Titans Innovation Award
2009 Featured in Fortune Small Business and CNN.com
2010 Featured news story on WFAA Channel 8
2013 US Patent & Trademark Office selects OxySure to first United States Innovation Expo at Smithsonian Museum

34. 34
Sales
Awareness& Education
Growth Catalysts
Legislation
OxySure Circle of Success
Insurance
Legal
Regulatory

35. 35
Annual Trend Analysis
-2.50mm
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-1.50mm
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1.00mm
1.50mm
2.00mm
2.50mm
OxySure Systems, Inc. (OTCPK:OXYS) - Gross Profit (FY)
OxySure Systems, Inc. (OTCPK:OXYS) - Operating Income (FY)
OxySure Systems, Inc. (OTCPK:OXYS) - Total Revenue (FY)

36. 36
Quarterly Trend Analysis
-1.00mm
-0.80mm
-0.60mm
-0.40mm
-0.20mm
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0.20mm
0.40mm
0.60mm
0.80mm
1.00mm
OxySure Systems, Inc. (OTCPK:OXYS) - Total Revenue (FQ)
OxySure Systems, Inc. (OTCPK:OXYS) - Operating Income (FQ)
OxySure Systems, Inc. (OTCPK:OXYS) - Gross Profit (FQ)