NamSys (CTZ) Planet MicroCap Showcase: TORONTO 2025 summary

Industry trends and cash supply chain challenges

• Cash usage has declined over the past decade but remains stable at 14%-16% of payments post-COVID, especially for in-person transactions and among unbanked populations.

• Cash handling incurs significant fixed costs, including transportation, compliance, and insurance, making its relative cost rise as usage declines.

• Cash in circulation grows at 2%-3% annually, with $2.3 trillion in U.S. cash circulating globally, 80% in $100 bills, often used as a store of value.

• The cash supply chain is cyclical, involving ATMs, retailers, banks, and cash-in-transit companies, each with unique operational needs.

Product offerings and business model

• Provides software-as-a-service for retailers, cash-in-transit companies, and cash processing centers, focusing on efficiency and security.

• Revenue is highly U.S. dollar-centric (96%), with 75% from the U.S. and the rest from international markets like Mexico and the Caribbean.

• Cash-in-transit companies serve as both customers and distribution channels, reselling solutions to retailers and processing centers.

• Pricing is usage-based: per truck for transit, per store for retail, and per workstation for processing.

• Maintains hardware agnosticism, allowing customers flexibility and reducing vendor lock-in.

Financial performance and operational strategy

• Achieved consistent 10%-20% annual revenue growth over the past decade, with 99.5% recurring revenue and minimal customer churn.

• Gross margins are around 60%, net margins 40%, and annual recurring revenue is $7.6 million.

• Operates with no debt, a lean workforce (20 employees), and a focus on organic growth and customer success.

• Financials are straightforward, with clear ownership and minimal dilution; top 10 shareholders own 70% of shares.