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| 8-K - 8-K - FINJAN HOLDINGS, INC. | form8k-090517irprezo.htm |
Investor Presentation
September 2017
NASDAQ: FNJN
Safe Harbor Statement
The following presentation is prepared as of September, 2017
and outlines matters for informational purposes only. This
document does not constitute an offer to sell or a solicitation of an
offer to buy any securities of Finjan Holdings, Inc. (“Finjan”, “we”
or “us”).
This presentation includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These statements include statements
regarding our expectations, intentions, beliefs and projections
about our future results, performance, prospects and
opportunities. These statements can be identified by the fact that
they do not relate strictly to historical or current facts or by the
use of words such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “project,” “potential,” “should,”
“will,” “will be,” “would,” the negative of these terms and similar
expressions, but this is not an exclusive way of identifying such
statements. Readers are cautioned that forward-looking
statements are not guarantees of future performance. Our actual
results, performance and achievements may differ materially from
those expressed in, or implied by, the forward-looking statements
contained in this presentation as a result of various risks,
uncertainties and other factors. Important factors that could cause
our actual results to differ materially from our expectations
include, without limitation, our ability to execute our business
plan, the outcome of pending or future enforcement actions, our
ability to expand our technology portfolio, the enforceability of our
patents, the continued use of our technology in the market, the
development of a liquid trading market for our securities and other
factors described under Item 1A, “Risk Factors,” as set forth in
the Company’s Annual Report on Form 10-K filed on March 27,
2017 or Quarterly Report on Form 10-Q filed with the SEC and
any subsequent quarterly or current reports.
The Company will continue to file annual, quarterly and current
reports, proxy statements and other information with the SEC.
Forward looking statements speak only as of the dates specified
in such filings or presentations. Except as expressly required
under federal securities laws and the rules and regulations of the
Securities and Exchange Commission, we do not undertake any
obligation to update any forward-looking statements to reflect
events or circumstances arising after any such date, whether as a
result of new information or future events or otherwise. You
should not place undue reliance on the forward-looking
statements included in this presentations or that may be made
elsewhere from time to time by us, or on our behalf. All forward-
looking statements attributable to us are expressly qualified by
these cautionary statements.
Our filings with the SEC are available to the public on, and may
be reviewed at, the SEC’s internet website www.sec.gov and on
Finjan’s web site www.finjan.com. You may also read and copy
any document that Finjan files with the SEC at the SEC’s Public
Reference Room, 100 F Street, N.E., Washington, D.C. 20549.
Please call the SEC at 1-800-SEC-0330 for further information on
the Public Reference Room and their copy charges.
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
2
* Retirement of Series A Preferred shares and Contingencies (totaling $9.5M), Series A-1 and Common share offering raised $25.7M
** Does not include Jury awards currently >$40M and does not include contracted revenue
Strong Momentum Entering 2nd Half of 2017
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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$15.3M
Series A-1 Preferred
2017
$13M
Public Offering
2017
• 15.3M Series A Preferred Stock;
153K shares @ $100 per share
• Warrant to purchase 2.3M
common shares at $3.18;
exercisable following 3 month
anniversary up to 36 months
• Issued 3.6M common shares
at $3.15. Approximately
$11.3M to Company
• Exercised over-allotment
option of 540,000 shares
closed on July 25 an
additional $1.7M to Company
4
Cash
$40M
Capital Raise Activity in the Second Quarter
Finjan Sends Strong Message with Strengthened Balance Sheet
Balance Sheet
as of 6/30/17
Finjan Highlights
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Investment in Innovation
Landmark
Patented Technology:
(1) Finjan, Inc. (2) Finjan
Mobile (3) Finjan Blue
Experienced
Management Team
Successful Licensing &
Enforcement History
Mobile Security
Products
Strong Revenue Momentum
Bolstered Balance Sheet
Advisory Services and
Cybersecurity Thought
Leadership
Proven Innovator with Multiple Pathways Towards Future Growth
Cybersecurity: An Escalating Challenge Across Industries
Business/Retail
• 495 breaches (45%)
• 5,669,711 records
compromised
Cybersecurity Products and Services – to grow from $75 billion in 2015 to $175 billion by 2020*
Cyber Risk Insurance Market – projected to triple from $2.5 billion in 2015 to $7.5 billion by 2020**
Healthcare
• 376 breaches (34%)
• 15,942,053 records
compromised
Banking/Credit/Financial
• 52 breaches (5%)
• 72,262 records compromised
Government/Military
• 72 breaches (7%)
• 13,869,571 records
compromised
Data from 2016 ITRC Breaches as of January 18, 2017. Logos from companies having highly visible breaches over the last 18 months
*Nigam, founder of security advisory firm SSP Blue, expert in online safety and privacy; led security efforts at Microsoft and News.
** PwC Global State of Information Security Survey 2016.
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Global Issue
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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“Rome wasn’t built in a day, but
data breaches frequently were.
The time to compromise is
almost always days or less, if
not minutes or less.”
– Verizon Data Breach Report 2016
64,199
Security Incidents
82
Countries Reporting
2,260
Confirmed Data Breaches
700M
Compromised
Records
$400B
Cost Quadrupled
From 2013 – 2015*
$1.2T
Costs To Quadruple
by 2019**
Verizon Data Breach Investigation Report for
2016: countries represented in combined
caseload
* Lloyd’s of London
** Juniper Research
20 Years at the
Center of
Cybersecurity
Finjan Technology
& Patent Licensing
Software &
Hardware
Malicious Code
Research Center
M86/Trustwave
Merger
Innovation Fund
(JVP)
NASDAQ: FNJN Finjan Mobile Cyberisk Advisory
Services
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Finjan Blue
Finjan Blue
+25 Patents
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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IP Licensing
Portfolio of landmark cybersecurity patents
resulting from internal R&D, in-house
product development and strategic
partnerships
Patents cover core functionality
and features used in modern
security architectures Finjan
Cybersecurity
Business
Diversified public company
focused in four areas
Finjan Mobile
VitalSecurity™ to protect consumer’s mobile
devices from the internet’s malicious content;
incorporates Finjan patented technologies
Exploring protecting mobile phones
in the workplace while securing
personal and corporate data
Cybersecurity
Advisory Services
CybeRisk™ Security Solutions Ltd.
Based in Palo Alto with offices in Tel Aviv
Risk assessment & Risk advisory
services tailored to meet compliance and
governance needs from “server room to
the board room”
Investments In
Innovation
$5M commitment to innovation
fund managed by Jerusalem
Venture Partners (JVP)
Limited Partner in early-stage
cybersecurity technology companies
alongside Cisco, Qihoo360 and Alibaba
Expansive and Growing License Opportunity
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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>$250M in Licensing Fees Generated, to-date
Large and
untapped universe
remains
NDCA
Judge Freeman
BC1: Jury Award of $39.5M;
CAFC September 8, 2017
BC2: Trial October 30, 2017
Germany Trial: November 27,
2017
Blue Coat acquired by
Symantec for $4.65B
NDCA
Judge Gilliam
Claim Construction Completed Trial April 9, 2018
SDCA
Judge Bencivengo
Transferred to San Diego;
Markman September 26, 2017
Germany Trial: October 5, 2017
NDCA
Judge Freeman
Recently assigned to presiding
Judge in BC cases
Markman April 20, 2017; Trial
June 1, 2020
NDCA
Judge Hamilton
All IPR’s resolved, Stay still in
place
NDCA
Judge Armstrong
Stay lifted March 28; Markman
January 19, 2018
NDCA
Judge Freeman
Case initiated August 4, 2017
NDCA
Judge TBD
Case initiated August 16, 2017
Select Litigation Catalysts
11
Recent trial victories with >$40M in outstanding judgments;
3 trials and 1 CAFC appeal in 2017
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
“Finjan shows patent owner
can prevail at IPR institution
stage”
~ Practicing Law
Institute
“Finjan Scores 2 USPTO
Wins Over Cybersecurity
Patents”
~ Law360
“USPTO rulings on Finjan
patents strengthen cases
against Blue Coat Systems
and others”
~ ThePatentInvestor
“Finjan wins big patent
victory as USPTO denies
institution on 6 Symantec
IPR petitions”
~ IP Watchdog
“Sophos was hit by a $15 million
infringement verdict in a case brought
by publicly traded Finjan Holdings,
Inc., The latest development
in a litigation campaign that has
stretched on for over a decade.”
~ RPX
“Comb through records of intellectual
property disputes in the cybersecurity
market and one name comes up again
and again….Finjan Holdings Inc.”
~ Bloomberg
“Finjan patents ranked #4 of “patent
owners that had their patents
challenged in petitions
for IPR, CBM or PGR Review in 2015.”
~ Docket Navigator
Finjan, Inc.: Durable Cybersecurity Patent Portfolio
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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80% Success Rate in Defeating Administrative Challenges at the USPTO and PTAB
12
99% Patent Claims Remain Unchanged
VitalSecurityVPNTM Features at Launch
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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1. Pass code and opt-in biometric security
2. Walk through tutorial screens for new users
3. Standard browser features and options
4. Best-in-class malicious code scanning
5. Tracker opt-out toggles
6. VPN selection and confirmation screens
7. Available on Mac and Windows PC platforms
Browser Represents Best of Class Technologies in a Number of Categories
1 2 3 4 5 6 7
$51.99
CybeRisk Advisory Services
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© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Australian Embassy Israel
• Risk Assessment & Risk Advisory Services
– Attack and penetration testing
– Risk and oversight
– Threat intelligence
– Defense optimization
– Thought leadership
Finjan Blue, Inc. - New Subsidiary in Collaboration with IBM
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Cooperative Relationship with IBM
• IBM and Finjan Blue to cooperatively monetize assigned patents
• Two companies will evaluate new opportunities from these or additional assets
in the future
Key Terms
• IBM assigns 25 issued US and 16 issued and pending patents worldwide
• IBM to support licensing and development efforts
• Finjan Holdings to invest $8.5M over 5 years with IBM
• Finjan to manage the monetization and retain all net proceeds from Finjan Blue
Investor Summary
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Key Statistics As of June 30, 2017
Ticker FNJN (NASDAQ)
52-Week Trading Range $1.00 - $4.06
Common Shares Outstanding 27.5M
Current Cash $39.9M
Licensing Fees Under Contract* $5.9M
Preferred Shares Outstanding 15.3M
Debt $0
* Licensing Fees Under Contract over the next 12 months
Contact Us
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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www.finjan.com
Vanessa Winter
Director of Investor Relations
Finjan Holdings, Inc.
650-282-3245
vanessa@finjan.com
2000 University Ave., Suite 600
E. Palo Alto, CA 94303
@FinjanHoldings
Linkedin.com/company/finjan
Facebook.com/FinjanHoldings