Forward-looking Statements

Transcription

1 September 2011

2 Forward-looking Statements Information contained in this presentation may contain forward-looking statements, including, but not limited to: the expectation that Easy Check and GlucoChip will eliminate the patient s need to prick his/her finger multiple times per day, the expectation that GlucoChip will have a one-year life span, that the product launch of iglucose is expected by early 2012, and the development timeline provided for iglucose, Easy Check and GlucoChip. These forward-looking statements are not statements of historical fact and represent only PositiveID Corporation's beliefs regarding future performance, which is inherently uncertain. There are a variety of factors, many of which are beyond the control of PositiveID Corporation, which affect operations, performance, business strategy and results and could cause actual results and experience to differ materially from the expectations and objectives expressed in any forward-looking statements. Additional information about these and other factors that could affect PositiveID Corporation's business is set forth in PositiveID Corporation's various filings with the Securities and Exchange Commission, including those set forth in PositiveID Corporation's Form 10-K filed on March 25, 2011, and Forms 10-Q filed on May 13, 2011 and August 15, 2011, under the caption Risk Factors. PositiveID Corporation undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. 2

3 Key Facts Symbol Corporate Headquarters OTCBB: PSID Delray Beach, FL Stock Price (9/6/11) 52-Week Range $0.22 $0.18-$1.09 Shares Outstanding 45,122,076 Market Cap $9.9M Volume (Daily 90-Day Average) 151,737 Long-Term Debt (6/30/11) $0.00 Cash (6/30/11) $1,200,000 Insider Ownership 35% Full-Time Employees 18 Fiscal Year December 31 Accounting Firm EisnerAmper LLP 3

4 PositiveID Summary PositiveID Corporation (NASDAQ: PSID) develops unique medical devices and biological detection systems, focused primarily on diabetes management, rapid medical testing and airborne threat detection products. iglucose automatic wireless communication of blood sugar readings Easy Check non-invasive breath detection of glucose levels GlucoChip implantable RFID glucose-sensing microchip M-BAND sample processing and detection of airborne bio-threats Dragonfly disposable cartridge for biological sample processing and detection (rapid PCR) for biodefense and clinical applications 4

5 TM Easy-to-use, patent-pending wireless device that connects and communicates automatically from existing data-capable glucometers FDA 510(k) Pre-Market Notification application submitted in July 2011 Collects, records and transmits a patient s blood glucose data from a data-capable glucometer to the iglucose online database iglucose correlates data and automatically sends glucose readings via text message, or fax to family member, caregiver, physician or other designee Data collected can be integrated into online patient portals The global market for glucometers and strips is forecast to reach $18 billion by 2015* Three-year wireless communication agreement with AT&T Wireless communication agreement with Rogers Wireless and MobiCare to launch in Canada Commitment to purchase a minimum of 28,000 units 5 *Source: Global Industry Analysts Blood Glucose Meters and Strips: A Global Strategic Business Report, October 2010

6 Easy Check Breath Device Easy Check breath glucose detection device, under development, is a non-invasive glucose detection system that measures acetone levels in a patient s exhaled breath The association between acetone levels in the breath and glucose is well documented A handheld, battery-operated, portable, easy-to-use device that includes: An advanced laser optical sensor, state-of-the-art microprocessor, and patent-pending chemical sensors The goal: patient exhales into the device to test glucose levels without the sample of blood presently required by existing glucometers Utilizes single-use capsule containing proprietary sodium nitroprusside-based reagent that triggers a chemical reaction that can be measured and correlated to glucose levels Preliminary lab tests reveal positive results within industry standards for glucometers as set by the National Committee of Clinical Laboratory Standards (currently Clinical and Laboratory Standards Institute NCCL) and the International Organization for Standardization (ISO) Could eliminate a patient s need to prick his/her finger multiple times a day to get glucose readings 6

7 Glucose-Sensing Microchip (GlucoChip) From our historical base with the original VeriChip the shift from identification to diagnostic In vivo glucose-sensing RFID microchip, the GlucoChip, based on PositiveID s Patent No. 7,125,382 for Embedded Bio-Sensor System and Receptors patented CARA platform Filed additional utility patent covering the interface between an RF powered resonant electromechanical drive and the fluids in the interstitial space of a patient for continuous detection of glucose levels in a patient GlucoChip will lie completely under the skin to provide continuous glucose sensing; communicates glucose levels to an external scanner Phase II development completed successfully created a stable, reproducible glucosesensing system and filed related patent GlucoChip could negate the need for diabetics to prick their fingers multiple times per day: the Holy Grail of diabetic treatment According to the American Diabetes Association, 25.8 million people in the U.S., or 8.3% of the population, have diabetes Annual cost of treating diabetics in U.S. exceeds $110 billion; expected to triple in 25 years, reaching $336 billion* * According to University of Chicago research published in Diabetes Care, November

8 GlucoChip Functionality Integrated sensor device design Components of the sensing/communication device Glucose Sensor Complete Assembly Mass Detection Type BLOODSTREAM GLUCOSE Bloodstream Glucose BIOCOMPATABLE MEMBRANE Biocompatible membrane COMPETITION/SIGNALING COMPONENT GLUCOSE BINDING ENVIRONMENT Competition / Signaling Component Glucose Binding Environment (Receptors in crystal) Reference Environment (No receptors) SENSING SYSTEM Mass Signal Detection SIGNAL TRANSDUCTION AND RFID ELECTRONICS Application Specific Integrated Circuit (electrical sensor circuitry) Antenna coil (RFID enabled communication) SENSOR ELECTRONICS 8

9 PositiveID Acquires MicroFluidic Systems On May 23, 2011, PositiveID Corporation (NASDAQ: PSID) completed its acquisition of MicroFluidic Systems ( MFS ), a leader in biological testing and sample preparation applications. MFS strong portfolio of intellectual property related to sample preparation and rapid automated biological detection is complementary to PositiveID s virus detection/sample prep application and diabetes management products. 9

10 MicroFluidic Systems ( MFS ) MFS specializes in the development and production of automated systems for a wide range of applications in the detection and processing of biological samples Founded in 2001, MFS has received over $45 million in government and commercial contracts in the last 10 years Core technologies include sample prep, nucleic acid (DNA and RNA) and protein detection, automated fluidics and integrated systems Focused on homeland security and pathogen diagnostic testing (field/clinical/hospital) opportunities Strong IP portfolio (29 U.S. Patents and Patents pending) and world-class scientific expertise MFS has submitted or in-process bids totaling $40 million, several of which are expected to be awarded in 2011 Initial consideration of $1.2 million, $950,000 of which was paid in stock and the remainder paid in cash; total potential consideration for the acquisition is $8.2 million through 2014 based on revenue and earnings targets over the fouryear period 10

11 M-BAND Overview M-BAND Integrated Pathogen Detection Systems Description: Bio-aerosol monitors with fully integrated systems with sample collection, processing and detection modules. Each module is fully functional and adaptable. MFS has implemented its own biological assays. Key technologies: Multiplexed assays Networked, remotely operating Cell lysis, nucleic acid purification Homogeneous, Taqman PCR Monoclonal antibody-based toxin detection Product differentiators: Rapid confirmation High sensitivity Fully autonomous operation Complete integration of sample collection through toxin and pathogen detection 11

12 DragonFly Overview Dragonfly Integrated Diagnostic Systems Description: Microfluidic cartridges for biological sample processing and detection including differential extraction cartridges, sample processing and amplification for biodefense applications, and clinical sample processing and detection. Key technologies: Rapid PCR Amplification Fluorescent detection Microfluidic Disposable Cartridges Automated fluidics Rapid cell lysis, nucleic acid purification Product differentiators: Fast results with high integrity Affordability Disposable Automated and easy to use Portable Small operating footprint 12

13 Investment Highlights Unique, patent-pending technologies addressing large markets with significant unmet needs for new products Strong management team and outstanding scientists with proven track records Submitted for FDA clearance for iglucose device product launch expected by early 2012 Strong pipeline of $40 million in potential new government contract opportunities Initial partnerships in place 13

14 Development Timeline iglucose Complete product development; prep & submit to FDA FDA approval process Manufacture & distribution ramp Global market for glucometers and strips forecast to reach $18B by 2015 Commercialization Key for success: sales/distribution partners Easy Check Prototype Multi-variable/sensitivity testing Research partner By 2020, an estimated 52% of U.S. adults will have diabetes or pre-diabetes 1 Commercial prototype Membrane diffusion & biocompatibility Self monitoring of blood glucose market totaled approx. $8.8B in Gluco- Chip Chemistry / optimization MEMS development ASIC & miniaturization Animal test & commercialization partner Q Q Q Q Q Q Q Q : United Health; 2: Enterprise Analysis Corporation

15 iglucose Market Opportunity Assumptions Total market size equals 25 million diabetics in the U.S. End user sale price of $90 device Monthly subscription of $10 (annualized $120) Strip sales - $0.05 per strip per three readings/day (Device sales and recurring revenue in $ millions on annual basis) Total annual market size for monthly subscription $1,500 Total annual market size for device sales $113 $225 $563 $1,125 5% 10% 25% 50% Market penetration* Total annual market size for strip sales $684 $750 $342 $150 $300 $68 $137 5% 10% 25% 50% Market penetration* 5% 10% 25% 50% Market penetration* 15

16 Easy Check Market Opportunity Assumptions Total market size equals 25 million diabetics in the U.S. End user sale price of $100 device Replaceable single-use cartridge at $1.00 each Five readings/day = over 1,800 readings/year (Device sales and recurring revenue in $ millions on annual basis) Total annual market size for device sales $1,250 Annual recurring one reading/day $456 $913 $2,281 $4,563 5% 10% 25% 50% Market penetration* Annual recurring five readings/day $22,813 $625 $11,406 $125 $250 $2,281 $4,563 5% 10% 25% 50% Market penetration* 5% 10% 25% 50% Market penetration* 16 *Does not include any assumption of growth in diabetic market.

17 GlucoChip Market Opportunity Assumptions Total market size equals 25 million diabetics in the U.S. End user sale price of $90 per device Estimated one-year life of device No sales of scanners or other revenue streams assumed (Device sales in $ millions on annual basis) Total market size for device sales $563 $1,125 $225 $113 5% 10% 25% 50% Market penetration* *Does not include any assumption of growth in diabetic market. 17

18 Balance Sheet (all amount in 000s) 6/30/ /31/2010 Assets Current assets: Cash and cash equivalents $ 1,191 $ 1,764 Other current assets 923 1,478 Total current assets 2,114 3,242 Property and equipment, net Goodwill 1, Intangibles 1, Other Assets Total assets $ 5,204 $ 3,315 Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 738 $ 490 Accrued expenses and other current liabilities 1,079 1,219 Total current liabilities 1,817 1,709 Contingent Earnout liability 1, Total stockholders equity 1,987 1,606 Total liabilities and stockholders equity $ 5,204 $ 3,315 18

19 Cap Structure (Amounts in thousands) Ownership % Current Basic Full Dil. Common & Preferred Shares Board and Management 15, % 32.8% Public Float 29, % 60.0% Total Shares 45, % 92.8% Stock Options 3, % Warrants % Total Diluted Shares 3, % Fully Diluted 48, % 19

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