Security on the Move High Definition Surveillance for Mobile - - PowerPoint PPT Presentation

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Security on the Move High Definition Surveillance for Mobile - - PowerPoint PPT Presentation

Security on the Move High Definition Surveillance for Mobile Markets TSX-V: GSI | OTC: GKPRF | FSE: 1GK OCTOBER 2016 Disclaimer Forward Looking Statements This presentation contains forward -looking information within the meaning of This


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SLIDE 1

Security on the Move

High Definition Surveillance for Mobile Markets

TSX-V: GSI | OTC: GKPRF | FSE: 1GK

OCTOBER 2016

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SLIDE 2

Disclaimer

This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, but is not limited to, information with respect to the developments in Gatekeeper’s

  • perations in future periods, the adequacy of Gatekeeper’s financial resources, costs

and timing of development and Gatekeeper’s executive compensation approach and

  • practice. When ever possible, words such as “plans”, “expects”, or “does not expect”,

“budget”, “scheduled”, “estimates”, “forecasts”, “anticipate”, or “does not anticipate”, “believe”, “intend”, and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or will be taken, occur or be achieved, have been used to identify forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, those described under “Risk Factors” in the Prospectus and the following: reduced spending by the Corporation’s customers that result from changes in spending policies or budget priorities; the Corporation’s ability to manage risks inherent in foreign

  • perations; the Corporation’s ability to protect its brand; the Corporation’s ability to
  • btain products and parts from suppliers on a timely basis and on favorable terms; the

Corporation’s ability to manage its manufacturing and logistical services successfully; the reliability of product manufacturing and assembly and logistical services provided by third parties; possible changes in the demand for the Corporation’s products; the Corporation’s ability to successfully execute its business strategies; the Corporation’s ability to establish new relationships and to build on its existing relationships with integrators and dealers; and the Corporation’s ability to manage cash flow, foreign exchange risk and working capital. This list is not exhaustive of the factors that may affect any of the Corporation’s forward- looking information. Although Gatekeeper has attempted to identify important factors that could cause actual results to differ materially from those contained in forward- looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Forward-looking information involves statements about the future and is inherently uncertain, and Gatekeeper’s actual achievements or

  • ther future events or conditions may differ materially from those reflected in the

forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Prospectus under the heading “Risk Factors” and elsewhere in the Prospectus. Gatekeeper’s forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made, and the Corporation does not assume any obligation to update forward-looking information, whether as a result of new information, future events or

  • therwise, other than as required by applicable law. For the reasons set forth above,

prospective investors should not place undue reliance on forward-looking information. This presentation is not, and is not intended to be, an offer to sell or the solicitation of an offer to buy any security of Gatekeeper in any jurisdiction. This presentation is not an

  • ffering memorandum.

Forward Looking Statements

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SLIDE 3

About Us

Gatekeeper provides innovative, end-to-end high definition surveillance solutions for mobile applications including body cameras, police vehicles, school buses, transit buses, transport vehicles, military aircraft and coast guard patrol vessels.

Introducing Gatekeeper Systems Inc.

www.gatekeeper-systems.com FSE:

1GK

TSX.V:

GSI

OTC:

GKPRF

3

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SLIDE 4

Our Markets

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Homeland Security

  • Terrorism
  • Drug Interdiction
  • Underwater Threat
  • Oil & Gas
  • Patrol Boats

Transport Services

  • Hazardous Materials
  • Road Rage
  • Driver Behavior
  • False Insurance Claims
  • Asset Protection

Public Transport

  • Violence
  • Bullying
  • Vandalism
  • Potential Terrorist

Threats

  • Stop Arm Violations

Law Enforcement

  • Eliminate False Liability

Claims

  • Increase Accuracy and

Accountability

  • Crucial Evidence for

Investigators

Recording Evidence in High Definition For Extreme Mobile Environments

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SLIDE 5

Our Products

End-to-End High Definition Solutions For Extreme Mobile Market

www.gatekeeper-systems.com FSE:

1GK

TSX.V:

GSI

OTC:

GKPRF

5

  • Synchronize real time video, GPS, voice and vehicle sensors
  • Easy to use incident management and fleet tracking software
  • Intelligent live streaming and remote monitoring
  • High Speed Mobile License Plate Readers and TIMTM (Ticket Infraction Management) Software System
  • High Definition Body Worn Camera and Evidence Management Software
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SLIDE 6

Our Revenue Stream

Internal Mobile Video Surveillance

  • 95% of sales to date from internal

school bus cameras

  • Continued Sales Growth from:
  • Requirement for more cameras inside

bus.

  • Transition to Hi Def cameras
  • Live streaming with AutowakeTM
  • 45-50% gross margin

Mobile surveillance in multi-vertical, scalable markets

1 2 3

Stop Arm Violations

  • Average 15M stop arm violations

annually

  • Legislation approves automated

video enforcement – similar to red light cameras

  • Average citation $250 to $500 USD
  • Gatekeeper’s evidence collection

and citation processing system

  • System provided free of charge and

paid for by citation revenue

Public Safety & Defense

  • High definition body cameras and in

car video systems

  • Evidence management – in

development

  • Airborne High Definition Recorders

for defense.

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SLIDE 7

High Definition Video Surveillance

Mobile Video Surveillance

  • High Definition Video and Voice
  • Live Streaming Video
  • Integrated GPS and GEO Fencing
  • Monitors Driver Performance
  • Incident Management Software

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For Mobile Applications

Interior Cameras Exterior Cameras Mobile Digital Video Recorders 212,283 523,835 194,894 410,000

Taxi School Bus Transit Law

North American Mobile Market

( # of vehicles )

Sources: Gatekeeper Internal Research

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SLIDE 8

Student Protector™

  • High speed license plate

reader

  • Captures stop arm

violators

  • Cloud based citation

management system

  • Revenue sharing with

school district, county and Gatekeeper

Evidence Capture and Citation Processing

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SLIDE 9

PRIVATE E & CONFID IDEN ENTIA IAL TSX-V:G :GSI SI OTC:GKPR PRF

Gat atek ekeeper eeper Sy Syst stems ems Inc nc.

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SLIDE 10

PRIVATE E & CONFID IDEN ENTIA IAL TSX-V:G :GSI SI OTC:GKPR PRF

Gat atek ekeeper eeper Sy Syst stems ems Inc nc.

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Caught on Camera – A Close Call..

  • Gatekeeper’s Forward Facing

Camera on a School Bus in Jasper County, GA Captures a “Close Call” with a Garbage Truck

  • Video assisted in tracking

down the company, and driver was charged

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SLIDE 11

14,133,240 13,673,880 15,350,220 15,844,500 13,803,300

Stop Arm Violations

In 2015, the National Association of State Directors and Pupil Transportation Services (NASDPTS) tested the number of stop arm violations occurring in a single day throughout 26 States, resulting in an estimated 14 million stop arm violations in 2015.

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2015 – 2011 Survey Results – NASDPTS ( USA Only )

Sources: Violation count 2015 - Source: http://www.nasdpts.org/stoparm Annual Sourcing Results: ttp://www.nasdpts.org/stoparm/documents/2015%20NASDPTS%20Stop%20Arm%20Survey%20Summary%20Data.pdf

2015 2014 2013 2012 V 2011

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SLIDE 12

Stop Arm Enforcement Legislation

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Protecting Children Creates Potential Billion Dollar Market

2 0 1 4 2 0 1 3 2 0 1 2 2 0 1 1

Current Opportunity

Reoccurring Revenue in 15 States

  • Average 15M stop arm

violations annually.

  • Gatekeeper’s evidence

collection and citation processing system.

  • System provided free of

charge and paid for by citation revenue.

Future Opportunity

  • Expanding legislation

A Large Growth Opportunity

Law Enacted Individual School District or Municipalities Decision Legislation introduced or pending No legislation to date Legislation introduced but did not pass

A breakdown of states that have laws authorizing school districts to install video surveillance cameras on or near stop arm equipment to capture incidences

  • f motorists who illegally pass

school buses while loading or unloading students.

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SLIDE 13

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Source: https://publicintelligence.net/global-private-securitypolice-officer-personnel-levels-by-countryper-capita-2011/ and www.statcan.gc.ca/pub/85-002-x/2015001/article/14146/tbl/tbl02-eng.htm

Revenue Streaming Opportunity -

STUDENT PROTECTORTM

TM

cit citation tic ticket revenue sh shar are

 Based on 21 school districts (80% - 90% close rate), representing +1250 vehicles to be installed with Student Protector LPRs, 20 school districts with demo systems installed, the rest pending testing  Based on 5-year contracts, total revenues range from $47M to $186M based on violation incident rate of 0.5 to 2.0 (National Average @ .50/day/bus)  $2,070,522 Capex ($1,656 per bus (1,250 buses) with fast payback 15% Stream of $163.50 ( 50% of $325 citation = $24 per citation). Break-even is 84,945 incidents or 472 incidents per day based on 180 day school year. 472 incidents / 1,250 buses = .38 incidents per day per bus to break even.  Projected a total number of incidents will range from +309,000 to +1,237,000 based on 0.5 to 2.0 incidents/day  Government-mandated legislation for use of video evidence for school bus stop-arm violations

12015 the National Association of State Directors and Pupil Transportation Services

(NASDPTS) tested the number of stop arm violations occurring in a single day throughout 26 States, resulting in an estimated 14 million stop arm violations in 2015

$186.4 $93.2 $69.9 $46.6 $29.9 $23.8 $22.3 $20.7 $2.1 $2.1 $2.1 $2.1 $28.0 14.0 10.5 7.0

$- $50 $100 $150 $200 $250 $300 2.00 1.00 0.75 0.50 Millions

Incident Rate to Violation Ticket Revenue Sensitivity

(Millions - USD$)

GSI Revenue COS CAPEX Stream

Industry Metric: Incident Rate / Day per Bus

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SLIDE 14

XFORCE™

XFORCE™ Body Worn Cameras

  • High Definition Body Cameras
  • DOKNGO with intelligent video downloading

XFORCE™ Police In-Car Systems

  • High Definition forward facing camera with up 12 camera

system

  • Live Streaming Video and Evidence Downloading

Evidence Management Software

(In Development)

  • XVAULTTM Evidence Management Software
  • Smart tagging video creates

evidence case files

High Definition Mobile Surveillance Solutions

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SLIDE 15

Global Security & Police Personnel

3,992,615 7,690,000 2,159,839 1,401,000 15,169,809

North America China South America Russia Other

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# of Personnel

Source: https://publicintelligence.net/global-private-securitypolice-officer-personnel-levels-by-countryper-capita-2011/ and www.statcan.gc.ca/pub/85-002-x/2015001/article/14146/tbl/tbl02-eng.htm

Global Security & Police Personnel

>30 Million People

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SLIDE 16

What’s Ahead

  • Expanding Mobile Video market drivers including

High Definition cameras synchronized with vehicle diagnostics, mapping and routing, analytics and student tracking

  • Integration with 3rd Party Software Applications to

Access New Customers

  • Transition to Software As A Service ( SAAS ) with

Stop Arm Camera Business and Evidence Management

  • White Space – Growth in International Markets and

expanding new product solutions

What do investors have to look forward to?

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SLIDE 17

Growth Plan

Strategy

  • Focus on core business transitioning to

high definition

  • Create tri-plex technology platforms for

vehicle verticals including: 1) high definition, 2) video enforcement to protect children around school buses and 3) evidence management for managing video our hardware devices collect

  • Combine hardware revenue with recurring

revenue models

Goals

  • Accelerate market adoption of tri-plex

technology platforms

  • Leverage buying influencers in law

enforcement across multiple vertices'

  • Consolidate customers with tri-plex

platforms

Actions

  • Increase sales team on high definition

platforms

  • Disruptive business model for video

enforcement platform and execute on targeted geographic regions

  • Create integrated solutions with world’s

largest software companies to capture market share

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Our Goals & Objectives

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SLIDE 18

Quarterly Revenue Momentum

For the Quarter Ended

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2013 2014 2015 Interim 2016

942,073 1,279,170 1,573,799 514,928 752,988 1,198,409 931,855 1,087,172 1,455,537 2,469,209 955,574 1,726,008 3,103,333

2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

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SLIDE 19

Our People

Management & Directors

Doug Dyment

PRESIDENT, CEO, AND DIRECTOR

  • Founded Gatekeeper Systems in 1997, took company public 2013
  • Former VP Marketing and Director at Silent Witness, founded Security Products Division (which sold to Honeywell for

$72M)

Anthony Jackson, BBA, CPA, CA

CHIEF FINANCIAL OFFICER

  • Principal of BridgeMark Financial Corp., which provides corporate compliance, financial advisory and financial reporting

activities to public and private companies

  • Founder of Jackson & Company, Chartered Accountants

Doug Fraser, P. Eng, MBA

VICE PRESIDENT, PROGRAMS AND PRODUCT MANAGEMENT

  • Former global product manager for Honeywell
  • Specific technology included network infrastructure, wireless integration including WIFI and MESH networks
  • MBA ( IVEY School of Bus ) BScEE and Master of Engineering (University of Alberta )

John McEwen

SPECIAL ADVISOR

  • Co-Founder of Discovery Capital
  • Director and CEO of BC Discovery Fund
  • 20+ years experience advising early- stage Technology companies

Robert Galbraith

DIRECTOR

  • Former BC Chief Coroner, Chief of Police with RCMP
  • Founder, former CEO and Chairman of Silent Witness.,

Robert C. Hill

DIRECTOR

  • Former Vice President, Finance and Business Development for Haywood Securities Inc.
  • Former Senior Manager for Vignette Corp. in Austin, Texas, (now ‘Open Text Corp.’)
  • Former Senior Manager of Finance for Trilogy Software Inc. in Austin, Texas, which is one of the largest private software

companies in America.

Kelsey Chin

DIRECTOR

  • Chartered Professional Accountant and has served as Chief Financial Officer of numerous publicly listed companies.
  • Ms. Chin is intricately familiar with accounting principles and analyzing and preparing financial statements within the

industry which the Company operates.

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SLIDE 20

Share Structure

As of October 17, 2016

FSE:

1GK

TSX.V:

GSI

OTC:

GKPRF

Major Shareholders

Management & Directors (15%) BC Discovery Fund (8%)

20

Issued & Outstanding 63,373,496 Warrants

$0.25 – 8,957,330 Expiry: Feb 27, 2017 972,800 Expiry: Mar 5, 2017 533,867 Expiry: July 28, 2017 7,450,663

8,957,330 Stock Options 5,598,250 Fully Diluted 77,929,076 Market Capitalization (Approximately) $13 Million 52 Week Trading Range $0.10–$0.24

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SLIDE 21

Why Invest?

  • Multiple vertical markets using

common technology platforms

  • Transitioning to SAAS Model in

high growth verticals

  • Strong customer base with

marque customers like United States Air Force

  • Favorable Valuation

Investment Highlights

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SLIDE 22

Contact Us

Head Office

301 - 31127 Wheel Avenue Abbotsford, BC V2T 6H1 T: 1.604.864.6187 TF: 1.888.666.4833

The only public company in North America that sells stop arm cameras.

www.gatekeeper-systems.com FSE:

1GK

TSX.V:

GSI

OTC:

GKPRF

Corporate Contact

Douglas Dyment, President & CEO T: 1.604.864.6187 E: ddyment@gatekeeper-systems.com

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