Fast, Friendly, Secure Authentication

Sentinel Authenticatio

n

Hackers favor authentication-based attacks, report shows.

*The ProblemSummary: A suitable password

replacement could disrupt or defeat 80% of these attacks, report concludes.By John Fontana for Identity Matters | April 24, 2013 -- 13:52 GMT

(06:52 PDT)

“It’s not a matter of “if” when it comes to these attacks; it’s just a matter of when.”

Barry Rich – CFO CapitalMark Bank & Trust.

The average cost to a business for a data breach, not including soft, yet very real costs

(e.g. customer confidence/loyalty, brand/reputation, etc.) in 2010 was $7.2

million, or $214 per compromised record.

Enterprise Sentinel is an extremely secure yet user friendly corporate authentication

solution that can be cost effectively utilized on most platforms and end points.

*The Solution

Enterprise Sentinel® utilizes the Passrules® authentication process to allow users to

quickly and easily create one-time passcodes that are extremely resistant to today’s forms

of hacking.

The Passrules® authentication process has been patented in the U.S., Canada, China and

is pending throughout most of the world.

*The Solution

Enterprise Sentinel® is completely software based which means it can be used to secure

almost any device or platform including corporate servers, mobile devices, banking machines, personal computers, and many

more.

Gartner Research estimated the size of the authentication market in 2012 to over $2

Billion U.S. with an anticipated 30% annual growth rate.

*Market OpportunityThere is a fast growing movement driven by many top CISO’s to eliminate our reliance on passwords and to adopt more secure yet user

friendly methods of authentication.

- Targeting innovative and agile SMB’s.

*Go to MarketOur go to market strategy incorporates four

major streams.

- Partnering with other security providers to create a range of products. - Working with industry players (Gartner, FIDO, etc.) to gain exposure & credibility. - Drive by opportunities with big, profile customers.

Enterprise Sentinel® software is ready for market and operates on most Microsoft

operating systems.

*Our TechnologyEnterprise Sentinel® provides entities with

cost effective strong authentication alternative to legacy passwords and expensive and non-

user friendly 2 factor systems.

To date we have 2 pilot installations, a health care provider and a technology company.

- Independent consultants that recommend IT to services to SMB’s.

*Sales ChannelsThe market channels we will focus on are:

- Strategic partner’s existing client bases and joint prospects - Direct sales through leveraging alliance partner and industry contacts.

- Enterprise Sentinel® is sold on an initial installation and on-going annual license fees basis.

- Developing a cloud based ID as a Service capability to reduce installation costs and to make it easier for SMB’s to acquire and use our technology.

There are a few solution providers targeting this market including SecureMatrix, Syferlock,

SafeNet and RSA.

*Market PositioningWe will position our products in the relatively

uncontested market space that exists between legacy passwords and 2 factor authentication

systems.

Our strategy to lead this market is to leverage our superior technology product and to focus

our main sales efforts on more agile and innovative entities.

*The Numbers

2013 2014 2015 2016 2017

Initial License Fees

331875 836250 1706250 3180000 6337500 Annual Maint. Fees

0 132750 300000 641250 1277250

R&D Grants

150000 50000 0 0 0 Total Gross Revenue

481875 1019000 2006250 3821250 7614750

Expenses

Salaries --- Executives x 3

180000 180000 180000 180000 180000 Salaries --- VAR Mgr.

80000 252000 617400

Salaries --- Tech Support

60000 189000 463050 Salaries --- Admin Support

40000

88200 138915

Benefits

27000 33000 48000 106380 209905 Operating Expenses

20000 254750 501563 955313 1903688

Marketing

24094 50950 100313 191063 380738 Product Res. & Devel.

200000 200000 200000 200000 200000

Patents & Trademark

35000 35000 35000 35000 35000 Professional Services

9637.5 20380 40125 76425 152295

Total Expenses

495731 814080 1245000 2273380 4280990

EBITDA

-13856 204920 761250 1547870 3333760 EBITDA as % of Revenue

-2.88 20.11 37.94 40.51 43.78

S/W Devel. Amortization

200,000 200,000 200,000 200,000 200,000 Interest Expense (8% p.a.)

80,000 64,000 48,000 32,000 16,000

Other Depreciation

NEBT

-293,856 -59,080 513,250 1,315,870 3,117,760 NEBT as % of Revenue

-60.98 -5.80 25.58 34.44 40.94

Provision for Bonuses

0 0 102650 263174 623552.05 Provision for Taxes

Potential Net Income (Before Taxes)

-293,856 -59,080 410,600 1,052,696 2,494,208

Independent board has not yet been established. “Friends” include:

- Lon Hoffman – Partner - Accenture- General Harry Ruduege (ret) – Head of Cyber

Security - Deloitte- Rajesh Ahuja – Information Security,

Authorization Controls - Boeing

*The PeopleThe management team collectively - Has over 50 years of experience in bringing concepts to market successfully- Is familiar with the challenges at the various stages of growth - Has extensive experience in leading organizations to successful outcomes - Has a broad network of resources at their disposal

Key elements required:- Greater market profile - Marque client/partner- Additional capital

*Important StepsSo far we have:

- Completed our Microsoft based applications plus Android & iPhone apps- Defined our go to market strategy - Performed external testing on the strength and usability - Patented and Trade-Marked - Won awards for innovation, security and interoperability.

Future initiatives include:- enhancing our direct sales capabilities - building our VAR/Partner network globally- further programming enhancements - developing of a cloud based identification

(IDaaS) service - developing of “password broker” technology

*Financial ResourcesWe are looking to connect with strategic to accelerate our market entry and capitalize on

the growing trend to replace passwords.

Enterprise Sentinel® delivers the best characteristics of legacy technologies while eliminating the weaknesses that are making them obsolete.

*Why we will winMost business successes are the result of having a product or service available to meet the demands caused by changes in the external environment. Our game changing technology is extremely well positioned to meet demand for enhanced authentication security as the market continues to adopt and employ better alternatives to passwords.

*System Benefits

More secure

Resistant to all forms of authentication hacking

Fast and Easy to use

Can be used on multiple platforms and devices

Cost effective