Maduabuchi (Sam) Nkwodinma

Problem - Tier One 85 Frequent Travelers Surveyed 52% loose key card at least once 38% have stayed in hotels that required the return of the key card upon departure 73% value high-tech innovation

Problem - Tier Two Average of 28 issues with card keys on a monthly basis leading to service recovery Average per year cost: about $3,600 Hotels spend between $450 and $1,000+ on replacement keys and key packets monthly Average per year cost: about $10,000 Employees mistakes lead to giving guests the wrong keys Major security issues can result in lawsuits

Solutions Product: A biometric thumbprint scanning system to replace hotel key card access systems Features: 1 x 0.5 inch scanner Numbered keypad 1 x 2.2 inch digital information screen Battery backup Benefits: Codes prints to biometrics Allows override access Provides local restaurant ads No issue of non-functionality

Customer Validation Our Enterprise Sales, marketing, and information technology Partnership M2SYS Core Technology: marketing services Fulcrum Biometrics: manufacturing Branded Hotel Chains Software Program Restricts access to authorized users Tracks employees more efficiently Survey Results Approximately 70% are interested in our service Willing to pay, on average, $17.50 more/night for this service

Industry Trends

Security Alarm Services Industry Attributes Mature Projected to grow, entrance of higher technology Marketing Segments Served Security alarms & monitoring devices Locksmith services Follows state of economy Trend, challenge 2-tiered industry Low barriers to entry Security Alarm Services Industry Hotel Equipment Wholesaling Industry Hotel/Motel Industry

Hotel Equipment Wholesaling Industry Declining Private nonresidential construction declining Price: competitive factor Role of technology Hotels focus on more technologically advanced equipment: improving economic conditions Low barrier to entry Security Alarm Services Industry Hotel Equipment Wholesaling Industry Hotel/Motel Industry

Hotel and Motel Industry Mature industry Declined due to price wars Recovering with economy High barrier to industry Brand recognition Client base Increasing use of technology Especially in upscale hotels Security Alarm Services Industry Hotel Equipment Wholesaling Industry Hotel/Motel Industry

Industry Trends Low barrier to entry Varies with economy Technology- oriented: save $, up-to-date Mature Industry

Competitive Advantage Cost Direct competition None: No biometric entrance systems used in the hospitality industry Indirect Competition VingCard and Onity: major key card companies

Opportunities Hotel/Motel Industry barrier to entry Technology in economy Why SecuriKey? Unique After a one-time installation cost, comparable yearly subscription fee Competitive Advantage Technology increases hotel’s value Reduces hotel’s long-term cost: lower prices, higher profitability Competitive Advantage

Competitive Matrix FactorSecuriKeyKey CardsKeys Safety955 Convenience1055 Functionality9510 Environmental Friendliness 959 Low Price528

Business and Revenue Model Relevant Local Restaurant Ads Possible avenue of additional revenue 100 Suite Hotel: SecuriKeyVingCard* Installation (parts/labor)$75,000.00$71, Yearly Contractual Cost$36,400.00$33, Bi-Yearly UpdatesIncludedVaries Technical Repairs$75.00/hour Replacement PartsVaries **VingCard prices are based on Residence Inn by Marriott Dallas/Addison

Marketing Plan Enter market Utilize direct sales method Develop product Test in select 5 hotels Charge half the normal rate Provide free technical support visits for first year Expand to major brands after testing Install in 10 branded hotels in Year 2 Install in 100 branded hotels in Year 3 Target new brands and hotels to be constructed Attend trade shows

Timeline Work with Fulcrum Biometrics to build Prototype Consult with Test Hotels Contract with test hotels at discounted rate Install system in Test Hotels Begin gathering data of successes and failures Work closely with Test Hotels to monitor issues Work on any issues/kinks Begin compiling data to give to Hotel Chains First contact with Hotel Chain Finalize any changes in product or pricing Work with M2SYS to develop marketing campaign with increased budget

Financial Projections Y1 5 Hotels Y2 10 Hotels Y3 100 Hotels Revenue $212,500.00$800, BRBR $8,000, COGS $323,445.30$646, EAEA $6,468, Gross Profit $(110,945.30)$215, K $2,093, Operating Expense $570,475.70$1,324, EVEV $1,485, Net Income $(681,421.00)$(1,108,670.00) ENEN $608, **50% discount for test hotels

Startup Costs/Funding First Year Budget Cost Sales Salary (3 Sales Representatives)$124, Managerial Salary (1 Call Center Manager)$58, Customer Service Representatives (10 Representatives)$300, Office Space Rental$13, Accounting and Legal$50, Internet and TelephoneIncluded in Rent Office Computers/Equipment$11, Manufacturing/Materials/Biometric Software$58, Installation/Labor Contract Costs$265, Marketing$10, Training$3,010 Total $893,921.00

Management Team/Advisors Call Center Management Jasmine Linguist Sales Sam Nkwodinma Hotel Industry Advisor Abigail Turner Marketing Miguel Juarez Financial Advisor Open Human Resources Open Technical Advisor Open Customer Relations Shan Su