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TRANSCRIPT
Q4 2017
CSE: HS
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.
Public Disclosure
Our Mission
It’s our goal to put a tablet into the hands of every inspector,
freeing them from time-wasting paperwork and enabling them
through unfettered mobility.
Further, we are committed to empowering commercial
enterprises into developing comprehensive auditing processes
centered around environmental health scoring, data
management, and machine learning enabled actionable
insights.
HealthSpace aims to be the leading technology vendor for
public sector & commercial enterprise environmental health
software solutions in North America.
Problems &
Challenges
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.
Government
Need to effectively manage environmental
health inspections for their cities and
constituents as well as collect and analyze
data in a cost effective and simple manner.
The
Gap
Innovation
HealthSpace CS Pro
A platform that combines inspections, reporting, management
and data through our three products.
HealthSpace
Touch
A native iOS,
Android and
Windows app for
field inspections
HealthSpace
Cloud
Cloud based
portal for
managing apps,
licensing, permits
and other data
HealthSpace
Data
Environmental
health reporting
and analytics tool
HealthSpace Touch
Conduct paperless field inspections
from any place, at any time with our
intuitive suite of native apps for iOS,
Android and Windows.
HealthSpace Cloud
A fully-customizable cloud-based portal
for managing applications, licenses,
permits, inspections and other data.
HealthSpace Data
An environmental health reporting,
analytics and monitoring platform.
HealthSpace Data is a robust platform
that turns information overload into
useful, actionable insights.
Solutions: Public Sector
Public Sector utilizes HealthSpace CS Pro across multiple jurisdictions. This delivers: Performance update,
reliability, geo-tagged data, streamlined workforce management and comprehensive technology matched to
best in class support.
Solutions: Enhanced Public Sector Engagement
HealthSpace is launching a new pilot with one large US State aimed at enabling an integration between the public and private sectors. Our pilot
partner performs 3,000 inspections per-day of which 900 are restaurant facilities—Approximately 10% of these fail or receive poor results. We
will be alerted to these negative scores and be able to act directly, endorsed by the State. Present our SaaS solution as an effective remedy
delivering value to private businesses and sharing the top-line with our State partner.
Solutions: Restaurants & Hospitality
Configurability
Our platform can be easily tailored to fit
our users needs without the need for
developers. This means they can
create custom inspections while
integrating their local health agency
requirements.
We empower restaurants to take control and protect their brand by utilizing our platform's customizability and
actionable data insights.
Proactive
We empower our users to act before
their customers complain which helps
them proactively protect their brand.
Useful Data
Our users can easily report and
aggregate their data so that they can
gain actionable insights and
understand what to do next.
Case Study: Chipotle
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.
Solutions: Hotels
Integrations
The ability to customize and integrate
data from sources such as equipment
maintenance is invaluable for the
operation of hotels.
Hotels are like small cities. They act as operational entities with lots of moving parts requiring daily,
quarterly, and weekly audits. They require constant monitoring on environmental health and facility
maintenance.
Visibility
Hotels can easily report and aggregate
their data so that they can gain
actionable insights and understand
what to do next.
Proactive
We empower hotels to act before their
customers complain which helps them
proactively protect their brand.
Case Study: Mar-a-Lago Hotel
Just recently, the Mar-a-Lago resort and hotel was cited with 15
health violations that included meat and seafood stored at
improper temperatures and other health issues by Florida health.
This is nothing new either for the Mar-a-Lago resort and hotel and
it has received 78 violations over the past 3 years.
The HealthSpace CS Pro platform enables hotels to proactively
take action to provide the best customer experience by
integrating local public inspection requirements into the facilities
custom inspection process.
Also useful to this specific vertical is the configurability of our
platform and the ability integrate data such as refrigeration
temperatures.
Solutions: Cannabis Production and Distribution
Trusted for government
compliance
Our software is used for licence and
business process tracking.
Market research has identified that there are numerous innovation gaps in the cannabis production and distribution space. HealthSpace has
partnered with 1804 Management LLC to further iterate the HealthSpace CS Pro platform which is currently being used for agribusiness
applications to provide a more fully realized cannabis technology for auditing and operations.
Extensive agriculture industry
experience
Over 20 years of experience with
agencies such as the department of
agriculture.
The right fit for the Cannabis
industry
From process, production to
compliance, HealthSpace CS Pro is a
perfect fit.
Case Study: OrganiGram Type II recall
Health Canada released their first public recall of a cannabis
product since March 2015 today, with the announcement of a
Type II recall of 69 lots of product, this is in addition to five lots
recalled under a Type III recall in late December of last year.
The public recall notice explains that five product lots in
December had tested positive for myclobutanil “and/or”
bifenazate. Both of these are unapproved pesticides under Health
Canada’s ACMPR. Then, On Jan 9 of this year, OrganiGram
initiated a second voluntary recall, this time a Type II recall based
on trace amounts of the same pesticide(s) found.
The HealthSpace CS Pro platform enables cannabises producers
to streamline their operations as well as maintain safety and
compliance with local public health regulations.
• 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
Why HealthSpace
What we do
Deliver enterprise cloud-based software to
government 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.
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 years and
launched our commercial enterprise
business development activities.
Deliver new lines of business to
commercial enterprise verticals such as
food and beverage, hospitality and long
term care.
Advantages of our software
Unified HSCloud Suite Pro is the only
environmental health tech solution that
can simultaneously service government
and commercial enterprise out-of-the-box.
Government level applications with
modern tech UI/UX that rapidly
accelerates client adoption.
Hear from some of our happy customers
We're proud to serve 300+ government and public health agencies as well
as private sector companies. Here’s what some of them have to say about
us.
It's amazing how quick HealthSpace can
produce a module to meet our needs.
This is most appreciated by all with the
Health Canada Public Health Bureau.
Again, Steve THANKS for the great job.
Gus Skinner
Public Health Agency of Canada
HealthSpace has met every one of
our requirements on time and with
great products. Our professional
staff and our clients are fully
satisfied.
Patricia Lemay
Director, P.H.B. Health Canada
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.
Brenda Ashworth
Environmental Health Specialist
2016 - Q1
Completed Initial
rollout/product completion of
the HealthSpace CS Pro Suite
2016 - Q4
First statewide implementation of the
mobile HSTouch in the field for the
State of Tennessee Dept. of
Agriculture. All inspectors for the
department of agriculture switched to
using HSTouch in the field for their
food inspections
2017 - Q1
Second statewide sale of the
HSTouch product for the
Tennessee Dept. of Health
2016 - Q2
Signed first client, East Metro
Health District in Atlanta with
the HealthSpace CS Pro
2016 - Q4
Teamed up with Keboola for
enhancing HealthSpace’s data
product solutions
2017 - Q1
Complete UI/UX
upgrade to HealthSpace
CS Pro Suite
Milestones
2017 - Q2
Signed first commercial
enterprise SaaS customer in
restaurants and hospitality
2017 - Q3
Signed first commercial
enterprise franchiser in a multi-
state deal
2017 - Q3
Awarded State of Virginia
multi-year deal
2017 - Q2
Awarded City of Fort Worth, Texas
multi-year contract
2017 - Q3
Signed first cannabis partnership
agreement with 1804 Management LLC
2017 - Q3
Launching first hotel group
client engagement*
Freemium pricing model:
First 1-3 sites are freemium - This allows for faster
onboarding and purchasing activities.
• Hotels - 50 Locations x $500/month x 24
month SaaS term x 4 Customers = $2.4m
USD Annually
• Restaurants - 25 Locations x $100/month x 24
month SaaS term x 25 Customers = $1.5m
USD Annually
• Cannabis - 10 Locations x $500/month x 24
month SaaS term x 6 Customers = $720k
USD Annually
Historical Revenue Commercial Enterprise Sales Model
Public Sector Opportunity
Fiscal 2015 Fiscal 2016 9 months 2017
Revenues $1,860,441 $1,938,684 $1,454,904
Fiscal 2018 - 12 new organizations for an additional reoccurring
revenue of $900,000
Fiscal 2019 - 20 new organizations for an additional reoccurring
revenue of $1,500,000
Fiscal 2020 - 27 new organizations for an additional reoccurring
revenue of $2,000,000
for a total of $6,400,000 annual revenue.
Management Team
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.
Independent Directors
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
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.
Peter Smyrniotis - Advisory Board
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.
Atul Jain - Advisory Board
Mr. Jain is a leader in the environmental health profession. He is the past president of the Association of
Supervisors of Public Health Inspectors of Ontario. Atul has spent over 15 years as a health protection
professional and is currently Manager of Environmental Health at Peterborough Public Health.
CSE: HS
Share Capital 112,413,688
Warrants 17,521,500
Stock Options 7,260,000