Usio (USIO) investor relations material

Business overview and strategy

• Vertical Data operates as a full-stack AI infrastructure company, focusing on turnkey solutions for AI deployments globally, with a capital-light model that avoids heavy balance sheet risk.

• The company specializes in financing, sourcing, and managing AI hardware, data center capacity, and managed services, targeting large-scale deployments for cloud providers, data centers, and sovereign clients.

• Its business model integrates hardware sales, data center sourcing, managed services, and hardware financing, generating both upfront and recurring revenue streams.

• The company is building its own network of data centers, aiming for 10-20 locations, leveraging customer demand and partnerships to minimize capital outlay.

• Vertical Data positions itself as the GE Capital of AI, leading with financing to capture value across the AI infrastructure stack.

Market opportunity and competitive positioning

• The AI hardware market is as large as the U.S. consumer automotive sector, with significant growth expected, especially outside North America.

• Vertical Data focuses on global markets, particularly regions like India and Sweden, where AI infrastructure demand is rapidly expanding.

• The company differentiates itself by being vertically integrated and global from inception, offering a one-stop solution for complex AI deployments.

• Partnerships with OEMs, data center operators, and logistics providers create a robust referral ecosystem and recurring business opportunities.

• There are currently no dominant players in AI hardware financing, positioning Vertical Data to become a top global provider.

Financial performance and growth plans

• The company recently completed a $43 million hardware deployment for Alpha10 Capital, earning upfront and recurring revenues at attractive margins.

• Pipeline includes about 15 deployments for 2026, with expectations to add 10 more customers and scale recurring managed services revenue.

• Operates with about 25 employees, aiming to grow to 30, with a lean cost structure and a monthly spend of $150,000, primarily on middle and back office roles.

• Cash flow positive, with $7-8 million in cash and no need for significant capital raises due to the capital-light approach.

• Plans to uplist from OTC and expand shareholder base, targeting 12-24 large-scale deployments over the next several years.