TSXV:SCAN OTCQB:LDDFF - Frankfurt:LD2 - Q3 / 2021 - Liberty Defense
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TSXV:SCAN
OTCQB:LDDFF
Frankfurt:LD2
©2021 Liberty Defense. All rights reserved. Q3 / 2021
FORWARD LOOKING STATEMENTS │DISCLAIMER
This corporate presentation and the information contained herein (the “Presentation”) is proprietary and for authorized use only. It is being provided for the use of prospective investors with the express understanding that, without the prior
permission in writing from Liberty Defense Holdings, Ltd. (“Liberty” or the “Company”), the investor will not copy this Presentation or any portion of it or use any information contained herein for any purpose other than evaluating a potential
investment in securities of Liberty.
This Presentation provides general background information about the activities of the Company. Information disclosed in this Presentation is current as of April 19, 2021, except as otherwise provided herein, the Company does not undertake or
agree to update this Presentation after the date hereof. All information is derived solely from management of the Company and otherwise publicly available third-party information that has not been independently verified by the Company. Further,
it does not purport to be complete nor is it intended to be relied upon as advice (legal, financial, tax or otherwise) to current or potential investors. Each prospective investor should contact his, her or its own legal adviser, independent financial
adviser or tax adviser for legal, financial or tax advice.
No person has been authorized to give any information or make any representations other than those contained in this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so
authorized.
This Presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws. This information and these statements, referred to herein as “forward looking statements”, are made as of the date of this
Presentation or as of the date of the effective date of information described in this Presentation, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or
beliefs regarding future events and include, without limitation, statements with respect to: (i) expectations as to future operations of the Company; (ii) the Company’s anticipated financial performance and ability to generate revenue; (iii) the
Company’s ability to complete Beta Testing and the timing of the commencement of commercialization; (iv) the Company’s ability to move swiftly from the Beta to Low Rate Production and then to Full Rate Manufacturing; (v) future development
and growth prospects; (vi) expected operating costs, general and administrative costs, costs of services and other costs and expenses; (vii) ability to meet current and future obligations; (viii) treatment under governmental regulatory regimes; (ix)
ability to obtain financing on acceptable terms or at all; and (x) the Company’s expectations as to the effect of the COVID-19 pandemic on its business and operations.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", “projects”, “targets”, "forecasts", "intends",
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"occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking information, including without
limitation: (i) failure of the Company to operate and grow its business effectively; (ii) the availability of financial resources to fund the Company’s expenditures; (iii) impact of competition and the competitive response to the Company’s business
strategy, including the competitive response from existing technology firms and potential new market entrants which may compete with the Company; (iv) protection of intellectual property; (v) third party performance of obligations under
contractual arrangements; (vi) prevailing regulatory, tax and other applicable laws and regulations; (vii) network security risks and theft and risk of products offered by the Company; (viii) the effects of product development and the need for
continued technology change; (ix) stock market volatility and market valuations; (x) uncertainty in global financial markets; and (xi) COVID-19 and its potential effects on the Company’s third-party suppliers, service providers and distributors.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue
reliance on forward-looking information contained in this Presentation or in certain of the other documents on file with Canadian securities regulatory authorities, which are available on the Company’s SEDAR profile at www.sedar.com. The
Company and its directors, officers and employees each disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.
Accordingly, current and potential investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. All forward-looking information is expressly qualified in its entirety by this cautionary statement.
An investor should read this Presentation with the understanding that the Company’s actual future results may be materially different from what is expected.
This Presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such jurisdiction. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities
laws and may not be offered or sold within the United States, unless an exemption from such registration is available, information concerning the assets and operations of the Company included in this Presentation has been prepared in
accordance with Canadian standards and is not comparable in all respects to similar information for United States companies.
No securities regulatory authority has expressed an opinion about these securities and it is an offense to claim otherwise.
2
Protecting communities
and preserving peace of mind through
next generation security detection
solutions
NEED SOLUTIONS TEAM
§ In 2020, there were 39 million Disruptive technology under exclusive § Led by a seasoned leadership
gun background checks1 in license providing touchless security team in security, product
the US and mass shootings detection. Developing flagship HEXWAVE™ development, management, and
increased over 40% from the product. Newly licensed (March 2021) body corporate finance
previous year2 scanner and shoe scanner technology for
airport security checkpoints. Awarded grant § Supported by Board of Directors and
§ Expected market
for weapons
US$5B from BIRD Foundation and DHS for tech advisors who provide unparalleled
CAGR 7.2%* advancement. market access
detection3
1
3
https://www.fbi.gov/file-repository/nics_firearm_checks_-_month_year.pdf/view | 2 https://www.gunviolencearchive.org/reports/ past-tolls | 3 Explosives & Weapons Detection Systems Market, Technologies & Industry Volume 1, Homeland Security Research Corp. | *Compound annual growth rate (CAGR)
LIBERTY DEFENSE AT A GLANCE
Positioned to bring new contactless security to the urban security market
PRODUCTS TEAM
™
§ Executive leadership proven in
§ Real-Time Metal and Non-metal threat detection
security industry. Former L3
§ High throughput screening. Video rate 3D management
imaging for better detection
§ Deep market access through
§ Alpha integration & testing completed management and advisors
§ Beta design in progress § R&D team of leading engineers and
§ Exclusive worldwide license (until 2035) developers
§ Technology transferred from MIT § Strong network of partners and
consultants in software, hardware,
regulatory testing, manufacturing,
CHECKPOINT SECURITY and sales
§ High Definition Advanced Imaging Technology
body scanner and shoe scanner
§ Airport security screening technology
for threat detection
§ Exclusive license from Battelle
§ PNNL-developed, DHS funded 4
Contactless screening and threat detection
of all weapon types.
5
Automatic
Antenna 3D Radar Threat
= Array
& Transceiver
+ Image
Generation
+ Detection
AI & Deep
+ Smart IoT
Functionality
Learning
CONVERTS CAPTURED DATA INTERPRETS THE DATA AND PROVIDES CONNECTIVITY TO
CAPTURES REAL-TIME DATA
INTO 3D RADAR IMAGES 3D RADAR IMAGES EXISTING SECURITY SYSTEMS
EMIT CAPTURE RICH DATA INTERPRET ACTION
Low power signal is transmitted Each standalone unit ~400,000 datapoints create Artificial intelligence models interpret Smart loT functionality allows
to reflect off the individual captures reflected signals a 3D image rich data and provide go/no-go notification & interaction with existing
decisions infrastructure
6
PATH TO COMMERCIALIZATION (HEXWAVE)
– TECHNOLOGY RISK MITIGATED
§ Technology development: 7+ years and $20M investment in research system development and testing
§ Research and testing: 4+ years by MIT Lincoln Lab, technology transfer to Liberty completed
§ Liberty product development 2+ years (Antenna Array, UWB Transceiver, AI, UI, Product features) Regulatory,
Safety, Manufacturing
Risk 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023+
TTM 2023+
Research Testing Alpha Phase
Real-Time Beta Phase Product
System Imaging Launch
Development
FCC Cert
NPI Phase
0.25m Array Tile
Tech Transfer Field Trials
from MIT
Product Development
Antenna Mobile Product Ramp up,
Array Testbed Market Expansion
7
HEXWAVE ADVANTAGE: ACTIVE 3D CONCEALED WEAPON DETECTION TECHNOLOGY
System features that will provide the most versatile detection solution
Traditional Airport Key Differentiators (HEXWAVE)
Liberty Evolv ThruVision Patriot
Metal MMW
HEXWAVE Terahertz PatScan
Detectors Systems
§ Detect Broader Spectrum of Threats
(Metallic and Non-Metallic)
Metallic Threats
§ Indoor and Outdoor Application
Non-Metallic Threats X X X
§ High Throughput (video-rate Imaging
Solid Explosives X and real-time ATD)
Outdoor Use X X
§ No divestment of keys, wallets, or cell
phones is required
High Throughput X X X
§ No Privacy Concerns
3D Imaging for ATD X X X X § Mobile, scalable & smart IoT
functionality to match security
ATD Algorithms (AI) X X operations
Cost $$ $ $$$ $$$$ $$$ $$ Feature
Limited
X Non-Feature
MMW – Millimeter-Wave
ATD -- Automatic Threat Detection 8
ADVANCING AVIATION SECURITY
TSA and aviation authorities seek improved detection capability, reduced false alarms (leading to fewer pat
downs), and higher throughput capability:
§ Current technology is outdated and requires upgrades to meet evolving threats
§ Liberty is providing an open architecture platform to allow best in class technology to create a total system
Liberty is advancing passenger screening and solving the shoe removal problem. Liberty has exclusive licenses
for two innovative solutions developed by PNNL and funded by Department of Homeland Security:
§ High definition millimeter-wave body scanner for upgrades or new deployments
§ Footwear screener based on proven millimeter-wave technology
HD Advanced Imaging Technology Footwear Screener
§ Next-generation high-resolution imaging § System enables automated threat
system detection without shoe removal
§ Private, safe detection of threats § Based on AIT technology
concealed beneath clothing § Can integrate within existing AIT
§ Arms DOWN passenger stance systems or use as stand-alone system
§ Upgrade worldwide installed base or § Eliminates currently unsolved and
new system deployment inconvenient problem at checkpoint
HD AIT image clarity greatly Footwear screener creates
PNNL – Pacific Northwest National Laboratory improves private detection private detection without the
HD AIT – High Definition Advanced Imaging Technology and lowers pat downs need to remove shoes
9
BOARD OF DIRECTORS*
BILL FRAIN DARYL REBECK LINDA JACKSTA JOHN MCCOACH ARJUN GREWAL
CEO/ Director Executive Chairman Independent Director Lead Independent Director Independent Director
Former SVP of L3 (LHX-NYSE) Capital Markets Executive Customs & Border Protection Executive Past President of the TSX.V IBM Program Lead and 19-year Veteran
with 20+ years experience with 35 years experience (9 years) of the Canadian Armed Forces.
MANAGEMENT & DEVELOPMENT TEAM
BILL FRAIN MIKE LANZARO AMAN BHARDWAJ OMAR GARCIA JAY ADELAAR DAVID G. ALBERT
CEO President/CTO COO CFO SVP Capital Markets VP, External Affairs
Former SVP of L3 Former VP of Engineering Product Development and Operations Public Company Marketing and Capital 25+ years in Public Affairs &
(LHX-NYSE) at L3 (LHX-NYSE) Executive with 25+ years of experience Finance Executive with Markets Executive with 15 Government Relations at
15+ years experience years experience State and Federal levels
Leaders in the security industry, product development, technology and manufacturing
10OUR ADVISORS*
Experience and Leadership
CRAIG J. CALLENS JOHN MAY
Royal Canadian Mounted Police (RCMP) Management – Live Nation Canada
CHARLES H. RAMSEY HUBERT RICHARD
Commissioner – Major city police departments
Management – Ad agency sales for sports and events
RICK STANLEY z
Law Enforcement – Former police chief
CRAIG PETERS
Management – CBRE Real Estate
JOHN FRAIN
Law Enforcement – FBI; Security, NFL MIT SHAH
Hospitality Industry
VICTOR MONTAGLIANI Part-owner, NBA; Investments
Management – FIFA football
ANTHONY T. SLEIMAN
AL GRASSO Management – Real estate development
Advisory – The MITRE Corporation
1112
LIBERTY DEFENSE BUSINESS MODEL
Liberty aims to improve the customer experience and safeguard clients, customers, employees, students, and property.
Customers have the potential to capture additional revenues through either increased throughput or in-venue sales.
REVENUE STREAMS
Hardware Sales (HEXWAVE)
§ Each unit is standalone and may be deployed individually or as a portal configuration (two units) or
more
Maintenance and AI Updates
§ A 5-year maintenance plan to include Software and AI updates (recurring annual revenue stream,
based on hardware sales)
Implementation
§ HEXWAVE can be used as a standalone system or integrated into existing security platforms
§ Implementations will vary from basic to more fully integrated
MARGINS MARKET
§ High product gross margins after 2022 § Initial focus will be on US and Canada but there is an international need
§ Volume, technology curve, and value § Will look to use channel partners where appropriate and direct sales
engineering will further enhance § Amsource Capital Ltd. engaged to facilitate large and small ticket leasing
margins and financing of HEXWAVE
13URBAN SECURITY MARKET OVERVIEW
Threat-driven global requirements for urban security market ($5B):
§ Proactively detect concealed threats in real-time, even covert “ghost” IN A of Americans are concerned
plastic guns RECENT 83% about a criminal attack
causing physical harm
§ General mode of attack – unchallenged entry into venue with a STUDY1 of Americans have considered
military style weapon, blade, or explosive with high-volume lethal
canceling plans to attend large -
capacity 22% scale public events due to
§ Need to buy time to isolate, contain, and deploy response in both concerns about physical attacks
indoor and outdoors environments
§ Efficiently secure high-traffic areas
CONTACTLESS
High throughput, low impact = Positive customer experience
§ Sports & § Offices § Airports § Hotels
entertainment
venues § Corporate § Cruise ships § Places of
campuses worship
§ Shopping malls § Public
§ School transport § Military
§ Tourist sites campuses bases
1 https://securitytoday.com/articles/2019/06/12/many-americans-have-considered-cancelling-plans-due-to-safety-concerns.aspx
14MARKET VALIDATION
Liberty Defense’s agreements include beta testing with:
FC BAYERN MÜNCHEN MARYLAND STADIUM AUTHORITY (MSA)
SLEIMAN ENTERPRISES A German sports club, best known for its Established by the Maryland legislature in 1986 with
professional team, the most successful in German the mission to build, manage, and maintain quality
One of Florida’s largest privately held real estate
football history. Allianz Arena is the second largest facilities to keep professional baseball in the city of
companies; develops and manages shopping
arena in Germany Baltimore
centers, malls, hotels in Florida & Southeast
Georgia
METRO TORONTO CONVENTION CENTRE
(MTCC)
VIRGINIA DIVISION OF CAPITOL
POLICE (VDCP) Canada’s number one convention and trade show
OFFICE OF THE UTAH ATTORNEY
facility. Over the past 35 years, the Centre has
GENERAL The USA’s oldest police force responsible for the hosted over 21,000 events
Utah Attorney General is Sean Reyes is an security of Virginia’s seat of government & protects
independently elected constitutional officer of the the Virginia Capitol complex, including screening ~
executive department and serves four-year terms a half- million visitors each year
GREATER TORONTO AIRPORTS AUTHORITY
(GTAA)
Operates and maintains Canada’s largest airport,
HINDU TEMPLE Toronto Pearson, under a ground lease agreement
with the Government of Canada
A global Hindu religious and social organization UNIVERSITY OF WISCONSIN POLICE
with 3,300 temples around the world with a DEPARTMENT (UW)
number of temples located throughout North
The first public university established in Wisconsin PORT TAMPA BAY
America
and remains the oldest and largest public
university in the state Florida’s largest port and a top 10 U.S. cruise port,
supporting nearly 85,000 jobs and generating $18
billion in annual economic impact
10 varied beta test partners
15RECENT NEWS
“The Liberty Defense team provides the leadership, engineering skills, and experience in the
TECHNOLOGY security industry…to bring technologies to the defense of our nation.”
▸ Liberty Signs License Agreement for Next-Generation Aviation Security Technologies
“DHS S&T has invested in developing the next generation screening HD-AIT and shoe scanner that offer
significant improvements to current systems.”
RELATIONSHIPS
▸ Homeland Security: DHS-Funded Security Technology Licensed for Commercialization
“These strategic partnerships will develop innovative solutions that will enhance safety and security
around the globe.”
LEADERSHIP ▸ Liberty Announces $1 Million Grant from BIRD Foundation and Dept of Homeland Security
“25 years of management experience…responsible for the development and certification of the
company’s millimeter wave body scanner...”
▸ Liberty Defense Appoints Michael Lanzaro as President & CTO
FINANCIAL
STABILITY “Due to significant market demand, the Company has increased the size of its previously announced
brokered private placement from C$5 million to C$6.2 million.”
▸ Liberty Announces Closing of C$7.13M Oversubscribed Brokered Private Placement
16CAPITALIZATION STRUCTURE
§ Located in Greater Atlanta, GA and Greater Boston, MA
§ Recently Closed C$7.13M oversubscribed financing
§ Exchanges: TSXV:SCAN; OTCQB:LDDFF; FWB:LD2
§ Shares Outstanding: 63,993,345
§ Warrants Outstanding: 21,395,564
§ Options: 2,863,145 (662,729 vested)
§ Market cap: C$32M
§ Treasury: C$7.3M
As of August 30, 2021
17LIBERTY DEFENSE – WHY INVEST?
$5B Market Threat detection requirements in the urban
Potential security market are growing substantially
Next-gen security HEXWAVE ticks all the boxes for threat detection.
Contactless, seamless security for metal and non-
metal threats with high throughput. Expanding
technology portfolio with recent agreements.
Compelling value
proposition of experienced
Recent financings create well-funded treasury for management. Coupled
Well-funded commercialization
with growing demand for
Experienced executive and advisors with proven track disruptive contactless
Established record in security, management, and corporate technology to yield high
expertise finance. Former L3 management – contributed to the
sale of the security division of L3 for $1B in 2020
potential for profitability.
Multi-technology security
$20M invested to date to de-risk technology and product portfolio.
Clear pathway prove-out market applications. Recent award by BIRD
Foundation and DHS for technology advancement.
18REVOLUTIONARY WEAPONS & THREAT DETECTION
For further information, contact:
Telephone: 604.809.2500
Email: info@libertydefense.com
Visit our website: LibertyDefense.com
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