Investor Frequently Asked Questions

 

+ Tell us about your company and what you do.

+ What are biometrics?

+ What are your product lines?

+ What devices does your software support?

+ Which industry standards do you comply with?

+ Who are your clients?

+ Do you have any initiatives outside the U.S.?

+ What about your management team? How would you describe it?

+ What have you done lately?

+ Why doesn't Sequiam make quarterly or annual revenue projections?

+ Please clarify Sequiam’s accounting treatment for recognizing royalty income. Does Sequiam recognize royalty income when paid by its partner, or do they accrue royalty income for products manufactured/sold in one quarter but paid for in the following quarter?

+ I'm trying to understand the royalty income number (approx $17,700) Sequiam reported in the 3rd Quarter 2007 10-Q. Was this for the June 1 to June 30 period or for June I - September 30?

+ Please comment on outstanding stock warrants - who holds these, what are the exercise prices, etc.

+ Is it true that Sequiam shares of common stock have not been registered by qualification, notification or coordination and no permit has been granted, also known as a "Blue Sky Exemption" for their sale in Texas?

 

 

Sequiam provides innovative, secure and convenient technology solutions that simplify the way we work and live.

Founded in 1999 by Nick VandenBrekel, Sequiam is an OEM provider that extends and enhances the products and solutions of global brands by adding identity management capabilities.

We have invested extensively in the research and development of consumer biometric technologies that can be integrated into real-world environments while ensuring the evolved product or solution is affordable, intuitive and non-intrusive.

Our team understands the landscape of the emerging identity management market is confusing and difficult to navigate. We also recognize that each company looking to incorporate identity management technology into their products has specific feature, function and benefit requirements that differ on a project-by-project basis. Since this is the case, we have developed a robust services platform that can be tailored to the exacting specifications of each client thereby ensuring results of the highest quality are achieved while simultaneously reducing Time to Market from years to months when integrating identity management technology into their solutions.

Services we offer include: Design for Test/Manufacture product development and prototyping, Technical Engineering which includes end-to-end biometric technology integration into virtually any consumer product, Sourcing & Manufacturing Management which provides clients with the option of a “one-stop-shop” for their sourcing, tooling, manufacturing and packaging needs and OEM/Retail Build where Sequiam not only puts the product together but also ensures that it is received by the appropriate channel partners for distribution or sales.

This wide array of capabilities means we count OEM and Retail companies of all sizes amongst our client base.  With over 80 staff members in sales offices, manufacturing facilities and development centers in North America, China, Taiwan and South Africa all focused on the needs of each client, Sequiam is quickly emerging as a leader in the identity management market.  We look forward to working with you soon.

Biometrics eliminate the problems associated with password management by measuring human characteristics such as voiceprint, fingerprint, iris pattern, and facial contours, which are virtually impossible to duplicate and cannot be lost like traditional passwords. Biometrics make it more convenient for end-users to access their computer accounts, while maintaining a secure method of user authentication.

Our primary product is to provide biometric solutions to Original Equipment Manufacturers (OEM's) however Sequiam does have a number of proprietary products. Click here to view our product offerings.

Sequiam offers a wide range of multi-biometric security software products that enable biometric logon to computer workstations, networks, and enterprise single-sign on systems and electronic locking systems. Since our products are based on open-system industry standards, we are able to support many different devices.

These include:
  • Fingerprint scanners
  • Facial recognition devices
  • Iris scanners
  • RF badges
  • Smart cards
  • Proximity cards
  • Proximity sonar
  • Voice recognition devices

Sequiam Corporation endorses and complies with the Human Authentication Application Programming Interface (HA-API) standard and its successor, the Biometrics Application Programming Interface (BioAPI). As an active participant on the BioAPI standards committee, Sequiam keeps abreast of the latest industry advances-allowing us to offer what we believe is the most progressive authentication technology on the market.

We have many active Sequiam clients, based on OEM services, products and software shipped since January 2001. Our clients include Black & Decker, Changjiang Computer Company (CJCC), Davenport Sales International, Bank of Uganda, Shell Oil Company, South Africa and many other clients, some of whom prefer to remain anonymous for security reasons.

Sequiam has offices in Cape Town South Africa, Taipei Taiwan, Guangzhou China, and soon in Switzerland. These offices give us a global sales initiative, economical and talented engineers and programmers and access to contact manufacturing. Sequiam also owns 30% of Shanghai Changjiang Intelligent Information Technology Ltd., a joint venture in Shanghai China that develops and markets biometric enabled devices for the Chinese market.

Our management team is very experienced. Click here to view management team biographies.

All recent company developments can be found here.

Sequiam refrains from making any revenue projections specifically because it is an early-stage company dependent on a targeted sales approach. Since this is the case, it is likely that the loss of any one contract would have a material impact on revenue forecasts in both quarterly and annual settings. Once the company matures and develops renewable revenue streams that can be annuitized we will look to change this policy.

Sequiam Corporation follows Generally Accepted Accounting Principles (GAAP). Revenue is recognized when earned and is accrued until collected.

Royalties from the Smart Scan are paid to Sequiam Corporation in the month following the calendar quarter in which they are earned.

Sequiam Corporation's potentially dilutive issuances of common stock equivalents are summarized below by range of exercise price, both in total and by purpose:

Sequiam Corporation

Summary of Dilutive Issuances

Convertible Preferred Stock, Warrants and Options

As of December 20, 2007

 

 

 

Price Ranges

 Shares

 

$0.01

      105,150,465

 

$0.14 to $0.20

        14,887,893

 

$0.21 to $0.30

        42,856,361

 

$0.32 to $0.35

         2,675,000

 

$0.58 to $075

         1,317,222

 

$1.00

            350,000

 

$1.17

            500,000

 

Total

      167,736,941

 

 

 

 

Purpose of Issuance

 Shares

Price Ranges

Warrants issued to Biometric Investors LLC

      105,150,465

 $0.01

Warrants acquired by Biometric Investors LLC

         8,600,000

$0.14 to $1.00

Convertible Preferred Stock

         7,109,523

$0.21

Convertible Preferred Stock Warrants Series 'A'

        13,300,411

$0.21

Convertible Preferred Stock Warrants Series 'B'

        16,646,427

$0.30

Employee Stock Options

         9,640,834

$0.17 to $0.187

Warrants issued to other investors

         7,289,281

$0.14 to $1.17

Total

      167,736,941

 

Sequiam subscribes to Standard & Poor's "Corporation Records" service that, among other things, serves as a recognized securities manual in many states (38 including Texas) for "Blue Sky Exemption" trading This does satisfy manual exemption requirements.

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