healthspace data systems - corporate presentation

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Q1 2017 CSE: HS

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Page 1: HealthSpace Data Systems - Corporate Presentation

Q1 2017

CSE: HS

Page 2: HealthSpace Data Systems - Corporate Presentation

Public Disclosure

This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect“, "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.

More particularly and without limitation, this presentation contains forward-looking statements and information concerning HealthSpace’s future financial performance. The forward-looking statements and information are based on certain key expectations and assumptions made by HealthSpace, including expectations and assumptions concerning the success of new product development, HealthSpace’s ability to integrate acquired businesses and complete strategic acquisitions of additional business and other factors that affect demand for HealthSpace’s products.

Although HealthSpace believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because HealthSpace can give no assurance that they will prove to be correct.

By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause HealthSpace's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to expenditures and other factors that affect demand for HealthSpace’s products, industry competition, the need to effectively integrate acquired businesses, uncertainties as to HealthSpace’s ability to implement its business strategy effectively in Canada and the United States, labor, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments, political and economic conditions and HealthSpace’s ability to attract and retain key personnel. Additional information on these and other factors is available in the continuous disclosure materials filed by HealthSpace with Canadian securities regulators.

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this presentation or otherwise, and not to use future-oriented information or financial outlooks for anything other than their intended purpose. HealthSpace undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Page 3: HealthSpace Data Systems - Corporate Presentation

Our Mission

Our mission is to be the leading provider of public and environmental health software solutions in North America.

It’s our vision to put a tablet into the hands of every inspector, freeing them from time-wasting paperwork and making them truly mobile.

[Product Screenshot]

Page 4: HealthSpace Data Systems - Corporate Presentation

Client Based Web Based Enterprise Level

Short Project Cycle

Immediate Deployment Field Product Cloud

Product

Our CompetitorsEnvironmental Health Service Market:

20% Market Penetration

33% Market Penetration

Page 5: HealthSpace Data Systems - Corporate Presentation

Problem

Government: Need to effectively manage environmental health inspections for their cities and constituents, collect and analyze data in a cost effective and simple manner.

Commercial Enterprise:

Outside the scope of government auditing to ensure citizens’ safety; private businesses have no unified operation management and reporting tool that is designed around environmental health. These organizations have low visibility into how prepared they are for environmental health audits—almost always operating reactively.

The

Gap

Page 6: HealthSpace Data Systems - Corporate Presentation

Solution

HSCloud Suite Pro A platform that combines inspections, reporting, management and data through our three products.

[Product Screenshot] Could be a few here

HSTouch A native iOS, Android and

Windows app for field inspections

HSCloud Cloud based

portal for managing apps,

licensing, permits and other data

HSData Environmental

health reporting and analytics tool

Page 7: HealthSpace Data Systems - Corporate Presentation

• Agriculture

• Hospitality

• Food & Beverage

• Government & Public Sector

• Health Care

• Cannabis

• Retail

2015

$3 Billion USD Market Size 2024 - 12% CAGR

$8.3 Billion USD Market Size

HealthSpace Components: • Software

• Quality & Risk Assessment

• Data Analytics

• Environmental Compliance

• Auditing

• Certification

Page 8: HealthSpace Data Systems - Corporate Presentation

Why HealthSpace

Advantages Of Our Software

• Unified HSCloud Suite Pro is the only environmental health tech solution that can simultaneously service g o v e r n m e n t a n d c o m m e rc i a l enterprise out-of-the-box.

• Government level applications with modern tech UI/UX that rapidly accelerates client adoption.

How We Generate Revenue

• Through Software-as-a-Service (SaaS), via subscriptions or termed contracts.

• Serving over 300+ government agencies, with contracts averaging 3 - 5 y e a r s a n d l a u n c h e d o u r commercial enterprise business development activities.

• Deliver new lines of business to commercial enterprise verticals such as food and beverage, hospitality and long term care.

What We Do • Deliver enterprise cloud-based

s o f t w a r e t o g o v e r n m e n t organizations, such as Environmental Health Departments.

• Deliver current and historical data-sets to government and commercial businesses.

• Ultimately, Health Space enables organizations to deliver value to their communities and customers.

Page 9: HealthSpace Data Systems - Corporate Presentation

Brenda Ashworth Environmental Health Specialist

I have been extremely satisfied with the quality of the Healthspace system. This is our first computer program for inspections and I have found the program to be easy to use. The recording, reporting, tracking violations and scheduling of inspections has improved dramatically with the Healthspace system. Healthspace customer service has been fantastic in response to our changing needs and requests.

Patricia Lemay Director Public Health Bureau, Health Canada

Healthspace has met every one of our requirements ... on time and with great products. Our professional staff and our clients are fully satisfied ... the quality of HealthSpace’s work contributes significantly to the quality of our work.

“ “Our Customers

Page 10: HealthSpace Data Systems - Corporate Presentation

Use Case: Chipotle Outbreak

National & Local health departments did investigations and were able to pinpoint the chains with the issue, the food being served, where it came from and ultimately the illness.

A class action lawsuit was brought against Chipotle resulting in a sales drop of 30%, which lost the company USD$6 billion in market capitalization

Outbreaks & Health Department Response

Food borne illness outbreaks are frequent. When they do happen, its the job of the Health department to investigate and determine the source of the outbreak and the illness.

With adequate data management technology from previous inspections, they can provide faster investigation results and response to these outbreaks.

As more outbreaks occur and are nationally distributed throughout the media, more health departments are interested in having proper technology and software to track the data. Additionally, more chains and companies would like to monitor their inspection data from these heath departments.

HealthSpace Touch can be configured for internal auditing processes using the same standards as the government inspectors.

Page 11: HealthSpace Data Systems - Corporate Presentation

$2M USD

$4M USD

$6M USD

Feb 1st 2017 Jan 31st 2018

Forecasted Revenue Commercial Enterprise Sales Model

Freemium pricing model: First 3-5 sites are no charge for customers - this allows for faster pilots and purchasing activities

• Small / Med Business - 25 Sites25 x $200 x 12 = $60,000 Annually

• Small Enterprise - 200 Sites 200 x $150 x 12 = $360,000 Annually

• Large Business - 500 Sites500 x $100 x 12 = $600,000 Annually

Page 12: HealthSpace Data Systems - Corporate Presentation

What’s Next: HSData

HealthSpace will complete the aggregation of Canada’s publicly available environmental health data to develop a composite health data-set to sell into the US market

Page 13: HealthSpace Data Systems - Corporate Presentation

One More Thing

Cannabis We will bring our product to the red hot

commercial and government cannabis market.

We already do this With direct partnerships in the agricultural sector

Page 14: HealthSpace Data Systems - Corporate Presentation

Management Team

Peter Smyrniotis - CEO

• Commercialization professional, technology advisor & entrepreneur-in-residence with Victory Square Labs and the Hillcore Group.

• Worked with both private and public companies providing business development, strategic sales, channel & partnership and cloud brokerage strategic planning and execution.

Joseph Willmott - President & Director

• Over 35 years of business experience

• Acted as a policy advisor to the Saskatchewan Minister of Agriculture

• Chair of the Canadian Veterinary Medical Association’s Animal Health Research Fund

• Chair of the Organizing Committee for International Centre for Agricultural Science & Technology

Ali Hakimzadeh, Chairman of the Board of Directors

• Over 20 years experience in the financial services industry, senior Investment Banker at Canaccord Genuity.

• Involved in over $1 billion of financing and Merger and Acquisition activities in the small cap sector

Maureen Garrison - COO

• Worked for local newspaper that provided public with information regarding public health inspection scores for local restaurants & daycares.

• Project manager, senior project manager and director of operations for one of the leading providers of software to Environmental Health Departments in the US.

Silas Garrison, CTO and Director

• Leads the design and development of HealthSpace’s suite of software technologies.

• Designed and built the company’s industry-first iPad and Android environmental health inspection apps.

Page 15: HealthSpace Data Systems - Corporate Presentation

George Moen - Advisory Board Chairman

Mr. Moen is a serial entrepreneur and business leader who specializes in top-line growth across a variety of industries, including extensive experience in the food and beverage industry. He founded his first business, Sandwich Tree, while in university, and grew the restaurant chain to over a hundred stores across Canada. He subsequently founded and exited a number of successful businesses in technology, media and hospitality.

Ian Tostenson - Advisory Board

Mr. Tostenson is an appointed director to the premier's permanent small business roundtable (advising government on issues and opportunities for small business) and took on the challenge as an appointed member of British Columbia's climate team to chart out B.C.'s carbon future.

Warwick Smith - Advisory Board

Mr. Smith is a venture capitalist specializing in corporate finance and development for publicly traded companies. Mr. Smith has a background in capital marketing and finance, and he formerly served as the Chief Executive Officer of Health Space DataSystems. Previously Mr. Smith was Chief Executive Officer of Western Pacific Resources Corp.

Steven Lee - Advisory Board

Mr. Lee is a dynamic leader and experienced financial executive with a career focused on hypergrowth companies. As an early employee of Mobify, a privately owned SaaS (software as a service) company with a staff size of 160, Mr. Lee successfully secured the company's first financing (plus $10-million), led the M&A (mergers and acquisitions) process of multiple U.S.-based companies, oversaw a 300-per-cent growth in revenue and a 400-per-cent increase in staff with expansion into the United Kingdom and United States, while providing strategic advice to the chief executive officer and board of advisers.

David Eaton - Director

Mr. Eaton has over 25 years experience in public markets with exposure to all aspects of the business as a trader, financier and market maker. Over his career, Mr. Eaton has started many public companies, managing the process from creating the structure, organizing the initial public offering and post listing administration.

Alnesh Mohan - Director

Mr. Mohan has been a partner at Quantum Advisory Partners LLP, a professional services firm focused on providing chief financial officer and full-cycle accounting services to private and public companies, since 2005. Mr. Mohan has over 20 years of accounting, auditing and tax experience providing advisory services to a wide array of clients

Advisory Board

Independent Directors

Page 16: HealthSpace Data Systems - Corporate Presentation

Share Capital 92,702,438

Warrants 18,847,860

Stock Options 7,580,000

CSE: HS