NYSE AMERICAN: CTEK
CYNERGISTEK
I N V E S T O R P R E S E N T A T I O N
CYNERGISTEK I N V E S T O R P R E S E N T A T I O N NYSE AMERICAN: - - PowerPoint PPT Presentation
CYNERGISTEK I N V E S T O R P R E S E N T A T I O N NYSE AMERICAN: CTEK SAFE HARBOR STATEMENTS This presentation contains, and our officers and representatives may from time to time make, forward-looking statements within the meaning of
NYSE AMERICAN: CTEK
I N V E S T O R P R E S E N T A T I O N
2
This presentation contains, and our officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make (herein or otherwise) regarding the size of the potential market for our services; the number of potential customers/clients for our services; plans and strategies of CynergisTek and its subsidiaries for future growth and performance; market acceptance of our business model; our ability to integrate acquisitions and merged companies; and timelines relating to growth, milestones, and strategic focus. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management’s current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking
looking statements include, among others, the risk factors discussed throughout Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2018; and throughout Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Quarterly Reports on Form 10-Q for the quarters ending March, June and September 31. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We expressly disclaim any obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.
3
TRUST
To be that trusted partner that enables our healthcare clients to build the cybersecurity and information assurance programs they need to protect and support patient safety and care operations by delivering exceptional service, expertise and knowledge.
EXPERIENCE EXPERTISE
Security-as-a-Service – Building Cybersecurity Resiliency
#1 CYBERSECURITY, PRIVACY AND COMPLAINCE
4
RELATED COMPANIES Revenue* Healthcare Focus CynergisTek $21M Healthcare Deloitte $46B** None KPMG $29B* None HCI Group $160M* Healthcare EY $36B** None Secure Digital Solutions N/A None IBM $80B* None Atos $13B* Healthcare^ Impact Advisors $84M* Healthcare
*Estimated 2018 Revenues in US Dollars **Estimated 2019 Revenues in US Dollars ^Atos does not exclusively focus in healthcare, active in 21 industries KLAS Research is a healthcare IT data and insights company providing the industry with accurate, honest, and impartial research on the software and services used by providers and payers worldwide
Black Book Market Research 2019 CynergisTek Named Top Performer Cybersecurity Advisors and Consultants KLAS
Cybersecurity 2018Top Performer
KLAS
HIT Advisory Services 2018Top Performer
KLAS
Technical Services 2018Top Performer
5
TRUSTED NATIONAL BUSINESS ACROSS DIVERSE INDUSTRIES**
business associates
*Covered entities are defined in the Health Insurance Portability and Accountability Act (HIPAA) rules as (1) health plans, (2) health care clearinghouses, and (3) health care providers who electronically transmit any health information in connection with transactions for which the department of Health and Human Services (HHS) has adopted standards. **Does not include addition of recent acquisition of Backbone Consultants
Health Care Information Technology Consumer Discretionary Financials Other
Current Client Mix by Industry
Industry
Industry
6
Highly Targeted Industry
Highest Cost of a Data Breach
Skills Gap to Address the Problem Continues to Widen
Healthcare Remains Largely Unsophisticated with Information Security
Rise in Ransomware and Destructive Attacks has Kinetic Implications
attacks
Increasing Regulatory Pressure in Adjacent Markets
400,000 Euro11
7
Cybersecurity Remediation Services Virtual CISO Privacy Program Remediation Services Virtual Privacy Officer Vendor Security Management
(Nov 2018)*
Medical Device Security Management (Dec 2018)* Patient Privacy Monitoring Service
Professional Services Managed Services
Cybersecurity Program Assessment Medical Device Security Risk Assessment Penetration Testing Risk Assessments Privacy Program Assessment IoT Device Security Assessment Incident Response Readiness Exercise
Consulting Services
Compliance Assist Partner Program (CAPP) Managed Security Services (Apr 2019)*
Security-as-a Service: Multi-year Recurring Revenue Contracts
*Launch dates of new managed services offerings
Over 20 Consulting Service Offerings
8
IDENTIFY PROTECT DETECT RESPOND RECOVER
CynergisTek Services Strength
Emerging Opportunity With Destructive Incidents & Data Manipulation CynergisTek Services Strength
Left of Boom Right of Boom BOOM
Security Product Marketplace 1200+ vendors
9
10
$- $10 $20 $30 $40 $50 $60 $70 $80
2018 2019 2020 2021 2022 2023 2024
Millions Five Year Revenue Growth Strategy to $75M
Organic Adjacent Markets M&A
$75M $24M $8M $43M $21M
11
COMPANY TICKER NYSE: CTEK UNITS: USD Price (as of 11/6/19) $2.93 FD Shares Outstanding* 10.3M Market Cap $30.2M LTM Revenue* $22.6M Cash* $10.2M** Long- and Short-Term Debt* $1.7M
*Data as of Q3 2019 and includes recent sale of MPS division **Balance is net of tax liability and Backbone Acquisition
2017 2018 Q3 YTD 2018 Q3 YTD 2019
Managed Services Professional & Consulting Services
52% 48% 46% 38% $17.5M $21.3M $14.3M $15.6M
FY’17 to FY’18 Total Revenue: 22% Financial Highlights ($Millions) – Expanding New Revenue Lines to Focus on Growth 15% Managed Service Growth Q3’ 18 YTD to Q3’19 YTD
12 InvestorRelations@cynergistek.com cynergistek.com
NYSE AMERICA: CTEK