Digerati Investor Presentation Deck

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Digerati

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March 2022

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#1D O **** **** Digerati Unified Communications as a Service (UCaaS) INVESTOR PRESENTATION March 2022#2SAFE HARBOR Digerati Technologies, Inc. | OTCQB: DTGI This presentation is for discussion purposes only. Certain material is based upon third party information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Certain statements in this presentation constitute "forward-looking statements" relating to Digerati Technologies, Inc. ("DTGI," "Digerati" or the "Company") made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as "anticipate," "assume," "began," "believe," "budget," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "would" and variations of such words and similar expressions are intended to identify such forward-looking statements. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including, without limitation, the following: the impact of the recent coronavirus outbreak on our results of operations and our business; our ability to effectively market and generate revenue from our applications; our ability to generate and maintain active subscribers and to effectively monetize our user base; the intense competition in the industries in which our business operates and our ability to effectively compete with existing competitors and new market entrants; legal and regulatory requirements related to holding and distributing cryptocurrencies and accepting cryptocurrencies as a method of payment for our services; risks related to our holdings of digital tokens, including risks related to the volatility of the trading price of the digital tokens and our ability to convert digital tokens into fiat currency; our ability to obtain additional capital or financing to execute our business plan, through offerings of debt and equity; our ability to develop, establish and maintain strong brands; the effects of current and future government regulation, including laws and regulations regarding the use of the internet, privacy and protection of user data and blockchain and cryptocurrency technologies; our ability to offset fees associated with distribution platforms that host our applications; our reliance on our executive officers; and our ability to release new applications on schedule or at all, as well as our ability to improve upon existing applications. For a more detailed discussion of these and other factors that may affect our business, see our filings with the Securities and Exchange Commission, including the discussion under "Risk Factors" set forth in our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We caution that the foregoing list of factors is not exclusive, and new factors may emerge, or changes to the foregoing factors may occur, that could impact our business. We do not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this report, except to the extent required by applicable securities laws. 2#3Only in the Cloud ™ 972 Municipalities Financial Services Digerati focuses on serving the 'high-touch' small to medium-sized business (SMB) market in various industries including Healthcare, Banking, Financial Services, Legal, Real Estate, and Construction. Our primary market is in the U.S. with a strong presence in Florida, Texas and California, respectively the 1st, 2nd and 4th largest state economies by GDP in the USA. Primary Services Sectors: + Healthcare Digerati Technologies, Inc. | OTCQB: DTGI Cloud Communications, Cloud Telephony, Cloud WAN, Cloud Call Center, Cloud Mobile Professional Services Real Estate Banking 3#4ABOUT DIGERATI TECHNOLOGIES 4,000+ Business Customers Accolades Digerati is a multi-year recipient of Deloitte's Fast500 and Fast50 Awards for recognition as one of the fastest growing technology companies in North America. Successful Integrations Synergy telecom, Inc. COMMUNICATIONS nexogy Active PBX Phone Systems > Evolved Recently Acquired SKYNET TELECOM NEXTLEVEL A Cloud-Based Communications Company Acquisitions have been a key driver in increasing market share and revenue growth Digerati Technologies, Inc. | OTCQB: DTGI Market Data (as of 3/24/22) Ticker (OTCQB) Price Enterprise Value Revenue* Adjusted EBITDA* Average Daily Volume * Annualized Consolidated DTGI $0.10 $50 million $31.5 million $2.1 million 0.2 million shares 4#5INVESTMENT HIGHLIGHTS 8 8-8 HIGHLY EXPERIENCED MANAGEMENT TEAM Over 125 years of combined experience in the telecommunication and cloud communication services industry MARKET INSIGHT Knowledge and access to high growth potential markets provides unique opportunity to rapidly expand each business line Digerati Technologies, Inc. | OTCQB: DTGI ORGANIC & ACQUISITIVE GROWTH STRATEGY Rapid advancements in communications technology and business migration towards Internet-based communications systems are driving exponential market growth Ⓒ RECURRING REVENUE STREAMS High-margin recurring revenue from multi-year contracts with business customers 5#6telecom, inc. 2017 CORPORATE TIMELINE December 5th Announces Completion of Synergy Telecom, Inc. Acquisition 2018 May 2nd Announces Completion of T3 Communications, Inc. ("T3") Acquisition BCOMMUNICATIONS TODAY TRUSTED TECHNOLOGY itellum January 22nd Announces agreement to acquire minority stake in Itellum Comunicaciones Costa Rica S.R.L. 2019 September 27th_ Announces launch of mobile 'business continuity' solution in partnership with Otarris, a division of Kajeet Inc. nexogy ActivePBXK Phone Systems > Evolved November 18th_ Digerati announces completion of Nexogy and ActivePBX Acquisitions 2020 Digerati Technologies, Inc. | OTCQB: DTGI November 24th_ Digerati Technologies Closes $20 Million Credit Facility with Post Road Group August 11th- Digerati Engages Maxim Group LLC to Assist with its Growth Strategy and Goal to Up-List to a National Exchange 2021 NEXTLEVEL A Cloud-Based Communications Company February 8th Digerati announces closing of NextLevel Internet Acquisition 2022 - Future Growth January 5th_ Digerati announces closing of SkyNet Telecom Acquisition SKYNET TELECOM 6#7HIGH GROWTH MARKET Global UCaaS Market Growth 1 USD: billions $38.7 2020 CAGR: 23.5% $169.6 BILLION Business IP Traffic By Network (EB/mo) Business Internet Business Managed IP Business Mobile Data Global UCaaS Market will be $169 Billion by 2027 15% 2027 Business IP-based voice and data traffic demand continues to accelerate as mission critical software applications migrate to the cloud Businesses are becoming increasingly comfortable with the delivery of core services in the cloud $169 $72 BILLION Source: (1) Grand View Research, Inc. https://www.grandviewresearch.com/press-release/global-unified-communications-as-a-service-market (2) Grand View Research, inc. https://www.grandviewresearch.com/press-release/global-contact-center-software-market 77% Digerati Technologies, Inc. | OTCQB: DTGI Global CCaaS Market Growth ² CAGR: 19.7% $20.5 2020 $72.3 2027 Global CCaaS Market will be $72 Billion by 2027 7#8● ● ● ● A CHANGING LANDSCAPE Businesses continue to migrate from legacy systems to cloud-based communication services Growth fueled primarily by business adoption stemming from both the cost effectiveness and innovation of cloud infrastructure vs. legacy systems SMBs prefer single source providers for their IT and communications needs and are redefining solution expectations within the cloud framework DTGI is positioned for third wave by focusing on integration with CRM and other collaboration software . . 20 Voice Wave 1 Data 20 6 Analog Telephony On- Premise VoIP Move to Internet Protocol (VoIP) Packet-switching Application-centric Digerati Technologies, Inc. | OTCQB: DTGI On-Premise Wave 2 Cloud-hosted Move to Cloud-hosted services (e.g., UCaaS, CCaaS) Individual-centric Application/task-centric Market is entering third wave of Unified Communications and Collaboration transformation driving demand for cloud native integrated and collaborative capabilities with low-code/no-code integrations to many popular cloud applications 8#9● PRODUCTS AND SERVICES - UCaaS Services Salesforce Sugar Netsuite CRM Integration ● Call Recording SMS & Messaging Voicemail to Email Voicemail to Text Fax Texting Fiber, 4G/5G, SD WAN Digital Oxygen Unity Toolbar & Google Apps Presence & Status Instant Messaging gUnify.... Video Conferencing Mobility Robust UCaaS application that supports complete cloud communication capabilities and cloud telephony applications • MS Teams integration CRM integration • Contact Center platform and application (CCaaS) Complete mobility via mobile/web platform and softclient salesforce Voice & Visual Communication ● ● Digerati Technologies, Inc. | OTCQB: DTGI MS Teams Integration ● Backup & Storage • Real time communication from anywhere on any device Voice, video, private chat, business SMS Delivery of digital oxygen and business continuity solutions Fiber broadband Simple Meetup HD Audio Conferencing ● • Cloud WAN (SD WAN) Mobile broadband over 4G/5G 9#10● STRATEGIC ACCRETIVE ACQUISITIONS LATE-2020 nexogy Miami-based provider of UCaaS and managed services Offers a portfolio of cloud-based solutions to SMB's; 1,500 business accounts and 14,000 users Serves various industries including Education, Health Care, Financial Services, and Real Estate. • Product portfolio includes diverse cloud solutions: Voice PBX Broadband data - Collaboration - Managed services $31.5 Million Annual Revenue Contribution ActivePBXK Phone Systems > Evolved • Miami-based global provider of cloud-based business phone systems that increase productivity and mobility while reducing telecom expenses. Offers CRM integration with a robust contact center platform that integrates with all major CRM platforms Key partner agreements include Oracles NetSuite that provides for the delivery of an enterprise-class contact center to any business that utilizes NetSuite ● $2.1 Million Annual EBITDA Contribution ● SKYNET TELECOM • Texas-based provider of cloud communication and broadband solutions Offers CRM integration and wireless business continuity solutions ● ● Accretive M&A Outcomes / Improvements Digerati Technologies, Inc. | OTCQB: DTGI EARLY-2022 Expands service and support capabilities in the large and growing Texas market Adds 500 business customers and 5,000 total users 4,000 Total Business Customers NEXTLEVEL. A Cloud-Based Communications Company California-based provider of cloud communication and broadband solutions Offers CRM integration and wireless business continuity solutions Expands service and support capabilities in the large and growing California market Adds 1,000 business customers and 12,000 total users 45,000 Total Users 10#11DIGERATI IS EXECUTING ON A WELL-DEFINED GROWTH PLAN Secure Adequate Growth Capital Continued balance sheet clean up and improve access to equity markets. Well-position the Company to act on strategic and accretive acquisition opportunities. + Acquire Synergistic Business Identify and acquire local and/or regional UCaaS/cloud telephony providers with high gross margins and predictable revenue streams. Provides greater access to similar customers in banking/insurance, financial services, legal, municipalities, food service, etc. KI Digerati Technologies, Inc. | OTCQB: DTGI Drive Revenue Growth Focus on integration of recently acquired businesses. Targeting a range of YoY organic revenue growth between 5% and 10%. Continued enhancements to its broadband product portfolio, improving the Company's UCaaS solutions, and implementing a total support model. Future Growth and National Listing Continue to evaluate opportunistic and accretive acquisitions. Drive operational efficiencies to increase EBITDA. Work with Investment Banking partner to achieve a listing onto a national U.S. exchange. 11#12● ● ● ● ACCRETIVE M&A STRATEGY Digerati Technologies, Inc. | OTCQB: DTGI Disciplined Approach in a Very Fragmented UCaaS Industry! NEXTLEVEL. A Cloud-Based Communications Company Complements organic growth Greater than 50% of UCaaS industry is made up of local/regional providers Ability to replicate acquisition success of integration and re-energizing sales efforts Identify and implement best practices of acquisition targets Support by strong financial partner Post Road Group Potential to use public company stock currency in the future SKYNET TELECOM ActivePBXK Phone Systems > Evolved nexogy Synergy B COMMUNICATIONS 12#13● COMPETITION Competition for SMB's is largely through fragmented market of local, regional providers. Larger competitors are primarily focused on enterprise customers (Fortune 1000 enterprise accounts). Larger competitors include: Vonage Description Primary Industry HQ Location Provider of cloud communication services. Communication Software Holmdel, NJ RingCentral® Provider of SaaS-based cloud unified communications and collaboration technology. Communication Software Belmont, CA 8x8 Provider of cloud-based enterprise-class telecommunication services created to enable mobility and global connectivity. Global Cloud Communications Telecommunication Service Providers Digerati Technologies, Inc. | OTCQB: DTGI San Jose, CA ooma Provider of cloud-based smart platform intended to transform the landscape of home phone services. Telecommunication Service Providers Sunnyvale, CA nextiva Developer of a communication platform designed to provide small scale companies with big-business phone features. Communication Software Scottsdale, AZ 13#14FINANCIAL HIGHLIGHTS Q2 Fiscal Quarter ended January 31, 2022 • 21% increase in revenue to $4.019 million • $16.1 million LQA revenue ● ● • $209K Adjusted EBITDA** • $591K in OPCO EBITDA* Fiscal Quarter Ended ($000s) Revenue ** Digerati Technologies, Inc. | OTCQB: DTGI Net income (loss)* Adjusted EBITDA** Cash/Cash Equivalents Ending Balance January 31, 2022 $4,019 $(11,047) $209 $2,844 January 31, 2021 $3,326 $(1,955) $251 $1,875 *For January 31, 2022 includes loss on derivative instruments of $3,265 million and loss on extinguishment of debt of $5,480 million, both non-cash losses **Adjusted EBITDA and OPCO EBITDA excludes all non-cash items and one-time transactional expenses 14#15● ● ● STRONG FINANCIAL PARTNER Digerati Technologies, Inc. | OTCQB: DTGI Post Road Group - $30 million Senior Debt Facility Private investment firm located in Stamford, Connecticut investing in corporate credit and real estate Initial funding used to close the acquisitions of Nexogy, Inc. and ActivePBX, and refinance existing debt Future draws may be used to fund additional acquisitions within the Company's robust M&A pipeline Andrew Runk, Managing Director of Post Road Group, added, "We are excited to become Digerati's capital partner. With these recent acquisitions, Digerati's platform represents a springboard to growth and considerable scale in the SMB marketplace." Since its founding in 2015, Post Road Group has completed over $1 billion of investments. PRG's Corporate Credit platform provides growth capital through senior secured loans and structured equity investments in the Technology, Media, Telecommunications (“TMT”), and business service industries, with a focus on telecom infrastructure and communications services in the lower-middle market, providing high-growth companies with flexible capital for strategic acquisitions, organic growth, and other special situations. 15#16COMPARABLE VALUATIONS DTGI trades at over 60% discount Enterprise Value to Revenue multiple when compared to peer group average in $millions, as per 2/15/22 Company (Stock Symbol) ClearOne, Inc. (CLRO) Crexendo (CXDO) 8x8 Inc. (EGHT) Lantronix (LTRX) Nextiva (private) Ooma (OOMA) Vonage Holdings (VG) Group Average Digerati Technologies (DTGI) Enterprise Value $28 $107 $2,270 $263 $2,500 $433 $5,680 $50 *DTGI revenue based on annualized consolidated Revenue $30.3 $23.4 $581.3 $82.0 $250.0 $186.1 $1,366.0 $31.5 Digerati Technologies, Inc. | OTCQB: DTGI TTM Growth Operating P/L 13% 48% 18% 28% ΝΑ 12% 11% 22% 30% ($5.8) ($1.9) ($151.3) ($4.9) ΝΑ ($2.4) $30.7 $2.1 Enterprise Multiples Revenue Operating P/L 0.9 4.6 3.9 3.2 10.0 2.3 4.2 4.2 1.6 NMF NMF NMF NMF ΝΑ NMF 185.0 185.0 23.8 16#17SEASONED LEADERSHIP Craig K. Clement Executive Chairman Over 25 years of Telecom, Technology Industry, and public company experience Former Chief Operating Officer of XPEL Technologies Corp. (NASDAQ: XPEL); responsible for taking XPEL public in 2004 Sr. VP Corporate Development with ATSI Communications, Inc. (AMEX: Al) that achieved a public market valuation of $615 million Founding CEO of GlobalSCAPE, Inc. (NYSE: GSB) that achieved nearly $300 million in market value 4 Ryan McDowell VP Business Development Ken Ryon CTO Arthur L. Smith Chief Executive Officer Over 30 years of Telecom, Technology Industry, and public company experience Founded and launched DTGI as International Telecom Business that reached a $615 million market value on AMEX (AMEX: AI) Founded and Spun-Off Internet Software Business: GlobalSCAPE, Inc. (NYSE: GSB) in 2000 Has Completed 12 Acquisitions and Secured Investment of $220 Million Felipe Lahrssen Executive VP Sales & Operations Bryan Asher VP Channel Sales ● ● . Digerati Technologies, Inc. | OTCQB: DTGI Antonio Estrada Chief Financial Officer Over 22 Years of Telecom Industry Experience and Accounting/Finance Experience 16 Years of CFO Public Company Experience With Over $45 Million in Annual Revenue Completed 2 Acquisitions in the Oilfield Services Industry With Over $40 Million in Annual Revenue Completed 5 Acquisitions in the Telecom Industry Colin Anderson Executive Director MIS and Technology Derek M. Gietzen President NextLevel Jennifer Crisp Controller and HR 17#18Digerati Thank you! Digerati Technologies, Inc. www.digerati-inc.com 825 W. Bitters Road, Phone: (210) GET-VOIP Suite 104 San Antonio, TX 78216 Digerati Technologies, Inc. | OTCQB: DTGI CA

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