2. Statements in this presentation may constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve a number of risks and uncertainties such as competitive
factors, technological development, market demand and the Company's ability to
obtain new contracts and accurately estimate net revenue due to variability in size,
scope and duration of projects, and internal issues in the sponsoring client. Further
information on potential factors that could affect the Company's financial results
can be found in the Company's Annual Report on Form 10-K and other periodic
reports filed with the Securities and Exchange Commission. Forward-looking
statements contained herein are made as of the date of this presentation, and we
undertake no obligation to revise or update any forward-looking statements in
order to reflect events or circumstances that may arise after the date of this
presentation, unless otherwise required by law.
All Company, brand or product names are registered trademarks or trademarks of
their respective holders.
Safe Harbor Statement
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3. • Intelligent Automation (IoT) Company
• Publicly Traded OTCQB:TKOI
• Established History of 17+ Years
• Headquartered in Milwaukee, WI
• Experienced Team of 107
Company Summary
3
4. • Successful Turn-Around Story
• Development-Stage as Market Leader
• Increasing Pace of Revenue & Profitability
• New $2 Million Revolving Line-of-Credit
• Experienced Management Team
• Evolutionary Internet of Things Platform
Company Overview
4
5. Mature Industry providing
10% growth
Shared
Synergies
Install
Support
Network
Customer-Base
300,000
Rooms
Installed
Emerging Industry showing
escalating growth
Less than 20%
developed
235,000
Rooms
Installed
10%
Growth
5%
Of Market
8M
Monthly
Users
Complimentary Divisions
5
11. Energy Management Systems Market is Expected to
Reach $44.4 Billion Globally by 2020
Allied Market Research (March 2, 2015)
Home Energy Management Revenue Is Expected to
Total More than $22 Billion from 2014 to 2023
Navigant Research (March 2, 2015)
Recent Headlines
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14. Ongoing Development
Intelligent Platform
Automated Monitor
Innovative Alerts
Self-Awareness
Evolutionary Architecture
3rd Party Integration
35%-45%+ Savings
Operational Savings
Equipment Longevity
Increased Comfort
Increased Communication
EcoSmart Benefits
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15. • 35%-45% Reduction in HVAC Alone
• Average Hospitality ROI Less Than 3 Years
• Zero Cost Deployment Option with Tier 1 Bank Partner
• Reduced Further Through Utility Rebate & Incentives
• Simple Upgrade Path
• Extensive Competitive Differentiation
EcoSmart Savings
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17. (in millions) 2013 2014 Change
Growth Q3 - Quarter Q3 - YTD Q3 - Quarter Q3 - YTD
Q3 -
Year over Year
YTD -
Year over Year
Revenue $3.50 $10.20 $4.10 $11.10 16% 8%
Gross Profit $1.80 $4.70 $2.10 $5.30 21% 13%
Operating Income ($0.20) ($1.30) $0.50 $0.00 363% 102%
Net Income ($0.50) ($1.50) $0.30 ($0.20) 180% 88%
EBITDA ($0.10) ($1.00) $0.50 $0.20 595% 124%
Model Q3 - Quarter Q3 - YTD Q3 - Quarter Q3 - YTD
Q3 -
Year over Year
YTD -
Year over Year
Revenue 100% 100% 100% 100% 100% 100%
COGS 49% 54% 48% 52% (1%) (2%)
Gross Profit 51% 46% 52% 48% 1% 2%
SG&A 45% 47% 31% 37% (14%) (10%)
Operating Profit (5%) (12%) 11% 0% 16% 12%
Net Income (14%) (15%) 9% (2%) 23% 13%
EBITDA (3%) (9%) 13% 2% 16% 11%
Financial Overview
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18. • Revenue of $4.1 million, up 16% from $3.5 million in 3Q13
• Product Revenue of $3.1 million, up 20% from $2.6 million in 3Q13
• Gross Profit of $2.1 million, up 21% from $1.8 million in 3Q13
• Gross Profit Margin of 52%, up from 51% in 3Q13
• SG&A expense of $1.3 million, down 20% from $1.6 million in 3Q13; SG&A declined
year-over-year from 45% to 31%
• Continued investment in R&D led to spending increase of 13% from prior year quarter
but decreased as a percent of revenue to 8.5% in 3Q14 from 8.7% in 3Q13
• Income from Operations of $457,528 compared to a Loss from Operations of
$(171,141) in 3Q13
• Net income of $326,318 for 3Q14 compared to a Net Loss of $(480,478) in 3Q13
• Adjusted EBITDA* of $531,255, compared to $(107,387) in 3Q13
• Significantly strengthened financial position with $2 million revolving line of credit
Recent Financial Highlights – Q3 2014
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19. Jason Tienor
CEO
Business & Platform
Development, Strategy,
Technology, Wireless
Matt Koch
COO
Wireless, Operations,
Platform Development
Gerrit Reinders
Exec. VP of Sales
& Marketing
Energy Efficiency, Channel
Development, ESCO
Gene Mushrush
CFO
Finance, Cost Containment,
Systems Development
Jeff Sobieski
CTO
Technology, Platform
Development, Engineering,
Business Development
Executive Management Team
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21. • EcoSmart offers a unique value proposition for automated intelligence, efficient
energy consumption, return on investment, and user comfort and convenience
exemplifying the Internet of Things (IoT) space
• Strong IP position and technological leadership with numerous differentiators
• 2014 demonstrated enormous growth in secondary markets including Education
and partnership development
• Growing backlog positioning business for rapid expansion
• Large and growing markets bolstered by secular trends seen through 2020
• Expanding base of highly recognizable channel partners and referral network
• Profitable with significant leverage in financial model remaining
• Experienced management team and accomplished Board of Directors
Key Investment Factors
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