dgly-investors presentation
TRANSCRIPT
Our Business
Law Enforcement (87% of our business for 2017 YTD)• In-Car Video (88% of total law enforcement)• Body-Worn Cameras (12% of total law enforcement)• Customers Include: City, State, Country and Federal Law Enforcement
Agencies, Military, International and Domestic
Commercial Fleet (13% of our business for 2017 YTD)• Incident Reporting• Body-Worn Cameras• FleetVu: web-based fleet monitoring• Customers Include: Ambulance, Fire, Paratransit, Taxicab, Mass
Transit, etc. (anyone who manages a fleet of vehicles)
New channels (Adapting current products and technology)• Private Security• Medical• Consumer Applications
Our Law Enforcement Competitors
• We are the only public company in our direct market channel
• Dominated by smaller non-public entities or small divisions of large public companies
• Many knock-offs entering market with little or no security and back-office software
In-Car Video
Body-Worn Cameras
Watchguard Video - Texas-based non-public entityCoban Technologies - Texas-based non-public entityL3 Communications - New York-based public companyPanasonic - Small division of large conglomerate
All of these provide in-car video solutions and are launching their own body-worn cameras.
Taser International - Arizona-based public companyVieVu - Washington-based non-public Reveal Media - UK based non-public entityWatchguard Video - Texas-based non-public entity
Many other smaller and larger companies developing body-worn systems
DVM-800 - Feature Rich In-Car VideoUnder $3,995 + Current & Future Trade-In CreditsLaunched in 2013
• Up to 8 Cameras; Unique Back-Up Camera• Integrated Wireless• Intelligent Dual Simultaneous Recording• Loop + Incident Recording• Advanced Replacement Warranty Coverage• and More!
DVM-800 HDNew Standard in High Definition Video
All features of the DVM-800 plus,
• 1080p High Definition Quality(1920x1080 Resolution)
• Faster WiFi uploading• 256 GB Storage• Cloud Compatibility
Launched September 2016
• ECA®• Super High Compression Codec• License Plate Gain Sweep• Better Performing Operating System• HD Audio
FirstVu HD Series - Ahead of the CompetitionLaunched in 2013
• Smaller & Lighter• User-Replaceable Battery -
Last for Full Shift• HD Video with
different Quality Options• Wide Field of View• Enhanced Low-Light
Sensitivity• Multiple Mounting
Options including POV and single mount• Pre-Event Recording• Recording Security & More...
VuLink® - Revolutionizes Connectivity
Launched in 2014; Patent #8,781,292 granted in 2014 & Patent #9,253,452 granted in 2016
• Connects Body Cam with In-Car Video• Simultaneously Starts Recordings on Both Systems• Utilizes Automatic Recording Triggers:
• Light Bar• G-Force• Weapon Deployment• Speed
• Eliminates Distraction, the Need to Continuously Record & User Error
• Can Link Recordings from Both systems in the Back-Office Software• Quickly becoming industry standard• Patented, competitors have challenged without success.
Deployed Units
• 10+ years of shipping video systems to law enforcement customers • One of the largest installed base of deployed units worldwide
(compared to our competitors)
• All 50 states• More than 30 other countries world-wide• Over 8,000 of the 18,500 total law
enforcement agencies in the USA• 20 domestic direct sales representatives• More than 40 international distributors
• Two individual international customers ranked in our top 5 customers(in terms of number of units deployed)
In-Car Video Systems | 62,050
Body-Worn Cameras | 15,800
Commercial Recorders | 14,250
Lidars |1,400
93,500 Units Worldwide
DVM-250 Series - Passager Documentation & Fraud Protection
• Reduces Accidents, Fraud & Litigation as much as 75%• Immediate Driver Feedback• Continuous loop while simultaneously recording events• Up to 8 Cameras; Unique Back-Up Camera
• FleetVu’s Comprehensive Fleet Management platform• FleetVu Cloud: DVM-250 Series video coverage• FleetVu Manager: DVM-250 Series video coverage & Asset
Tracking (Manage ROI through posted Speed Limits & Idle Time)• FleetVu Mobile: Supports either solution
Cloud Storage - Subscription based
• Offered as alternative to servers (which will also continue to be sold)
• Perfect for departments with no IT personnel
• Provides off-site evidence backup
• Lower up-front cost for customer
• Provides consistent, long term income and loyalty
• Developing Hi-bred system utilizing cloud and local storage• With over 5,000,000 videos uploaded and processed
Balance Sheet | September 30, 2017 (in millions)
Cash and equivalents …………………..…Other Current Assets …………………..….
Total Current Assets …………………..……FF&E And the LT Assets ……………..……
Total Assets …………………………………....
Current Liabilities, other…………………Subordinated Debentures ………………Secured Convertible Debentures ……
Total Current Liabilities ……………………Deferred Revenue – Long Term ……..
Total Liabilities …………………………….…Total Stockholders Equity ………….……
Total Liabilities & Equity …………………
$0.812.8
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13.61.5
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$15.1______________________________________________________________________
$5.2$0.5
3.2______________
8.92.1
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11.04.1
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$15.1______________________________________________________________________
Capitalization at September 30, 2017
• Total Shares and Dilutive Securities Outstanding: 9,690,852• Total Shares outstanding – 7,001,731• Warrants outstanding ($6.84 weighted avg.) – 3,013,466• We will receive $20.6 million cash upon exercise of these warrants• Options outstanding ($14.65 weighted avg.) – 409,831• We will receive $6 million cash upon exercise of these options• Convertible debentures at $5.00 rate – 650,000 equivalent shares
• During August 2017: completed a registered direct offering of 940,000 common shares at $3.00 per share and warrants to purchase 940,000 common shares at $3.36 per share. (Total gross proceeds of $3.2 million before any warrant exercise)
• During July 2017: warrants to purchase $639,824 common shares at $13.43 expired and are no longer exercisable.
• Total Shares Authorized• Common Shares – 25,000,000 (6,001,731 shares outstanding)
• Board Members and Officers have 16.7% in beneficial ownership (19.0% with vested stock options)
Future Excitement - 2018 & Beyond
• New Products will dominate:-Body-Worn Camera Series-In-Car Video Systems-VuLink® (patented) – Litigation -RFID Technology (patented)
• Domestic Law Enforcement market improving-Budgets and Funding is becoming less of an issue-Courts and Juries demanding video evidence-Liability protection is proven-Our product suite is second to none
• International Law Enforcement market is improving-Market potential is vast-Customers are adopting our solution
• Commercial Fleet market is diversifying our revenue base-Gaining traction in all markets-Our product is proven and preferred
• New Market Channels-Medical-Schools-Private Security