#1POSABIT INVESTOR PRESENTATION CSE:PBIT OTC:POSAF www.posabit.com May 2022 All numbers presented are in USD#2DISCLAIMER This presentation has been prepared solely for the benefit and use of certain qualifying investors. This presentation is confidential and proprietary, and may not be disclosed, reproduced, distributed or used for any other purpose without the express written consent of POSABIT. Forward-Looking Statements Certain information contained herein and certain oral statements made are forward-looking and relate to the POSABIT business strategy, product development, timing of product development, events and courses of action. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as "anticipate," "objective," "may," "will," "might," "should," "could," "can," "intend," "expect," "believe," "estimate," "predict," "potential," "plan," "is designed to" or similar expressions suggest future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding our expenses, sales and operations; our future customer concentration; our anticipated cash needs and our estimates regarding our capital requirements and our need for additional financing; our ability to anticipate the future needs of our customers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which POSABIT will operate in the future, including the demand for our products, anticipated costs and ability to achieve goals. Although we believe that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions; the ability to manage our operating expenses, which may adversely affect our financial condition; our ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; market conditions and the demand and pricing for our products; our relationships with our customers, distributors and business partners; our ability to successfully define, design and release new products in a timely manner that meet our customers' needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; our ability to maintain technological leadership; our ability to manage risks inherent in foreign operations; the impact of technology changes on our products and industry; our failure to develop new and innovative products; our ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect our business; our ability to manage working capital; and our dependence on key personnel. POSABIT is an early stage company with a short operating history; it may not achieve profitability; and it may not actually achieve its plans, projections, or expectations. Important factors that could cause actual results to differ materially from POSABIT's expectations include, consumer sentiment towards POSABIT's products and blockchain/cryptocurrency exchange technology generally, litigation, global economic climate, loss of key employees and consultants, additional funding requirements, changes in laws, technology failures, competition, and failure of counterparties to perform their contractual obligations. Except as required by law, we undertake no obligation to update or revise any forward looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither we nor any of our representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this presentation. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this presentation by you or any of your representatives or for omissions from the information in this presentation. Market And Industry Data The information contained herein could include market and industry data that has been obtained from third party sources, including industry publications. POSABIT believes that its industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, POSABIT has not independently verified any of the data from third party sources referred to in this presentation or ascertained the underlying economic assumptions relied upon by such sources. Notice to United States Investors This information contained herein does not constitute a general offer to the public, or the general solicitation from the public, of offers to subscribe or purchase any of POSABIT's securities in the United States. The distribution of this information and the offer and sale of the securities in certain jurisdictions in the United States may be restricted by law. Persons into whose possession this information comes are required to inform themselves about and to observe any such restrictions. This presentation is not, and shall not be deemed, to be, an offer to sell, or the solicitation of any offer to buy, any securities of POSABIT nor shall there be any sale of POSABIT's securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. POSaBIT's securities have not been and will not be registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act") or the securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S under the U.S. Securities Act) unless an exemption from such registration is available. The financial statements of POSABIT are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and are subject to Canadian auditing and auditor independence standards. IFRS differs in some respects from United States generally accepted accounting principles and thus may not be comparable to financial statements of United States companies. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF POSABIT AND THE TERMS OF ANY OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMISSION OR BY ANY STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES OR ANY CANADIAN SECURITIES REGULATORY AUTHORITY PASSED ON THE ACCURACY OR ADEQUACY OF THIS PRESENTATION. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. Resale Restrictions The securities are being offered on a private placement basis in reliance upon prospectus exemptions under applicable securities legislation. Resale of the securities offered will be subject to restrictions under applicable securities legislation. POSABIT 2#3COMPANY OVERVIEW POSABIT 3#4POSABIT AT A GLANCE POSABIT is the leading payments infrastructure provider for the cannabis industry. www.posabit.com INDUSTRY FOCUS LOCATIONS ACTIVE IN STATES CANNABIS 400+ CSE OTC PBIT POSAF 18 2022 GUIDANCE Revenue: $37.0 - $40.0 million Gross Profit: $9.0 - $10.0 million Transactional Sales: $675 - $730 million TOTAL 222.20 POSABIT PAYMENTS 7 9 A 3 . 00 TRXES POSABIT 4#5POSABIT OVERVIEW MILESTONES PRODUCT OFFERINGS Doubled Revenue each year since 2017 Expanded into 18 states Completed integrations with a variety of industry partners (Weedmaps, I Heart Jane, Leafly, Springbig) CURRENT Payment Processing PIN Debit Point of Banking Consumer ACH (B2C) Credit for CBD Point of Sale Mobile POS & Payments In-Store Payment Kiosk DEVELOPING POSABIT MSO Mgr. "Multi State Operator" Cash Advance Program POSABIT Connect API POSABIT 5#6POSABIT LEADERSHIP TEAM At POSABIT, we have a superior management team with significant experience in the technology field RYAN HAMLIN CEO / Co-Founder Nearly three decades of software development and management experience Former Executive at Microsoft Founded PlaceFull in 2011 and had a successful exit in 2021 to Retail Management Hero (RMH) MATT FOWLER CFO Former Senior Vice President of Finance and Accounting at AuthenticID. Former Vice President of Finance and Reporting at Phytelligence Former Director and Corporate Controller in charge of accounting and reporting for Rhapsody International Inc. JON BAUGHER CRO/Co-Founder Nearly three decades of software and technology sales experience Former VP, Sales at Placefull Has extensive senior sales leadership experience on a national and global scale ANDY SWEET CTO Brings over two decades of software start-up experience with a proven history of technical leadership Founded Diamondsoft and was an executive at Shop & Support POSABIT#7THE POSABIT TIMELINE Builds First Fully-Compliant, Non-Cash Payment Solution for Dispensaries Launches Full Point-of-Sale System for Dispensaries Launches First Fully-Mobile Point-of-Sale System, & Reached profitability Vertical Integration w/ ERP Service, New CBD POS, Credit for CBD, MSO Manager, Cash Advance Program NOV 2015 2015- 2017 2018 2019 2020 2021 2022 2016 POSABIT is Established Launches Payments Solution in WA & CO POSABIT Goes Public (CSE:PBIT) OTC Listing, Full Payment Infrastructure, Self-Serve Kiosk POSABIT 7#8KEY GROWTH DRIVERS NEW MERCHANTS DIGITAL PAYMENTS PENETRATION NEW OFFERINGS PARTNERSHIPS STATE LEGALIZATION POSABIT 8#9POSABIT MARKET EXPANSION POSABIT has dispensary partners in 18 states* across the country and plans to continue its expansion in 2022. New Markets - Currently Onboarding Merchants in: New Jersey, Illinois, Connecticut Target Markets for Expansion: Delaware, Florida, Hawaii, Louisiana, New Hampshire, New York, North Dakota, Ohio, Rhode Island, South Dakota, Vermont, Virginia, Washington D.C. *Alaska, Washington, Oregon, California, Arizona, Nevada, Colorado, Georgia, Oklahoma, Montana, Michigan, Maryland, New Mexico, Pennsylvania, Massachusetts, Missouri, Texas, and West Virginia States Where POSABIT Currently Operates Target States for POSABIT Expansion New Markets Onboarding NOW No Current Expansion Plans POSABIT 9#10POSABIT PARTNERSHIPS weedmaps Jane dutchie Leafly. ⚫HEADSET 4 ALPINEIQ Leafbuyer. Olla metrc ENLIGHTEN LEAF DATA SYSTEMS AN AKERNA COMPANY see beyond BioTrackTHC™ EYERATE W WIKILEAF springbig ● SpotOn peridot DIVVY POSABIT 10#11INVESTMENT HIGHLIGHTS POSABIT 11#12INVESTMENT HIGHLIGHTS COMPLIANCE AS A DIFFERENTIATOR/MOAT CANNABIS MARKET IS GROWING RAPIDLY DIGITAL PAYMENTS PENETRATION IS LOW, BUT RISING POSABIT HAS A BEST IN CLASS PAYMENTS AND POINT OF SALE OFFERING UNIT ECONOMICS ARE SUSTAINABLE AND HAVE UPSIDE POST-LEGALIZATION POSABIT 12#13POSABIT COMPLIANCE: OUR MOAT POSABIT IS A REGISTERED MONEY SERVICES BUSINESS WITH FINCEN AND HAS A FULL TIME CHIEF COMPLIANCE OFFICER POSABIT CREATED A DETAILED ANTI-MONEY-LAUNDERING PROGRAM AND POLICY WITH TOP TIER REGIONAL LAW FIRM POSABIT HAS DIRECT RELATIONSHIPS WITH OUR PROCESSORS AND BANKS TO ENSURE COMPLIANCE POSABIT 13#14THE OPPORTUNITY • CURRENT MARKET (BIG) ⚫9,000+ medical and recreational dispensaries in the US Average store sales of $3M annually Total processing opportunity $43b+ (2025)* • Less than 30% have some form of electronic payment processing today (and, in those stores, only 35% of transactions are electronic -65% still cash) • Additional state legalization as well as full federal legalization will eventually result in the majority of this shifting to digital commerce (away from cash) • • FUTURE MARKET (MASSIVE) States that recently passed cannabis legislation, market not yet open (e.g. New York) ⚫ Continued expansion in current legal markets (e.g. Illinois, Arizona, Michigan, New Mexico) Future full legalization, federal level • Continued normalization of electronic payments *Data on this slide comes from a combination of POSABIT internal reporting, publicly available data, and extrapolations based on those sources POSABIT 14#15U.S. LEGAL MARKET PROJECTIONS The U.S. Legal Market is Projected to Reach $43B in 2025(1) Expected to grow at a CAGR of 18%, to reach nearly $48B by 2026(1) (US$, B) 50 45 45 40 40 35 30 24.9 25 25 20 20 18.0 10.1 15 7.6 10 14.8 5 10.4 30.0 ADDRESSABLE MARKETS 47.5 $580B Prescription Drugs 2021 (2) 43.0 39.5 11.2 $223B US Alcohol Market 2020 (3) 35.0 36.3 Adult-Use 23.2% 7-year CAGR 1. 0 2020 2021 2022e 2023e 2024e 2025e 2026e $100B TOTAL US Cannabis Market (4) (legal & illicit) $24.9B ......LEGAL US Cannabis Market 2021 (1) Medical 6.7% 7-year CAGR https://www.forbes.com/sites/irisdorbian/2021/06/18/legal-cannabis-market- projected-to-rack-up-43-billion-by-2025-says-new- study/?sh=49e7edd936b4IQVIA Institute for Human Data Science, Global Use of Medicines, January 2022. 2. Statista, https://www.statista.com/topics/8803/alcoholic-beverages-industry- 3. in-the-united-states/#dossierKeyfigures Cowen, Research Themes 2021, page 49 POSABIT 15#16DIGITAL PAYMENT PENETRATION: LOW BUT RISING APPROXIMATELY 70% OF ALL DISPENSARIES ACROSS THE COUNTRY REMAIN EXCLUSIVELY CASH ONLY. CARD PAYMENTS HAVE BECOME INCREASINGLY ACCEPTED IN THE INDUSTRY AND OFTEN PREFERRED FOR SAFETY. STORES THAT USE DIGITAL PAYMENTS SEE STEADILY INCREASING ADOPTION RATES OVER TIME. WHEN STORES BEGIN TAKING DIGITAL PAYMENTS, THEY ALMOST NEVER REVERT TO CASH-ONLY. POSABIT 16#17POSABIT'S MARKET ADVANTAGE POSABIT is the best payment infrastructure in the cannabis industry. Full Regulatory Compliance Transparent Banking Relationships Custom-Built Software Robust Back-End Reporting Portal Best-in-Industry Equipment Full Suite of Payment Options Onboarding and Install Assistance Live, Expert Customer Support Host of Software & Hardware Integrations POSABIT Leading ACH Only Platform THE COMPETITION Leading POB Reseller ATM Machines (cash) Non-compliant Systems POSABIT 17#18POSABIT'S GREATEST COMPETITION IS CASH POSABIT's Advantages over Cash ATM In typical retail environments, cash is only used in 11% of all transactions (down from 16% in 2018). • In a cash-only dispensary, consumers are forced to make a trip to the ATM. • Customers artificially limit their spending power by taking out cash prior to their purchase. Cash stores are a target for criminals, digital payments create a safer environment for customers and employees • With a cap on their spending power, deciding on their purchase and discussing options with a budtender becomes a lengthier process. • The average card transaction is almost double the average cash transaction. Store employee tips skyrocket with card payments (dollar amounts vs. loose change). POSABIT 18#19FEDERAL LEGALIZATION ? The most common question we are asked is "What happens to POSABIT when cannabis is federally legalized?" The more pertinent question is "What will federal legalization even mean for the cannabis industry?" . ⚫ On day 1 of federal legalization, nothing will change. 7-11 won't begin selling marijuana. It won't be available on Amazon. • There are innumerable regulations and laws and infrastructure that must be put in place across the country. • State laws and regulations will continue to exist, including states who decide to keep cannabis illegal (see: Idaho). Similar to sports betting and online gambling. POSABIT 19#20WAVES OF LEGALIZATION WAVE 1: THE PRESENT Few payment processors in the industry POSABIT has the best infrastructure & solutions Addressable market is sizable & rapidly expanding WAVE 2: HIGH-RISK PROCESSING Immediately post-federal legalization Cannabis payments will still be considered high-risk Market opportunity will begin to rapidly accelerate POSABIT 20#21FINANCIAL OVERVIEW POSABIT 21#22POSABIT Q4 2021 RESULTS NM Not Meaningful Q4 Q4 % 2020 2021 CHANGE Payments $52.4M $104.7M 100% Revenue $3.1M $6.4M 110% Gross Profit $0.79M $1.48M 86% Gross Profit Margin 26% 23% -3% Adjusted EBITDA $0.13M ($1.1)M1 NM POSABIT 22#23POSABIT FY 2021 RESULTS 2020 2021 % CHANGE Payments $132M $362M 174% Revenue $7.8M $21.3M 172% Gross Profit $1.7M $5.8M 232% Gross Profit Margin 22% 27% 5% Adjusted EBITDA $(0.55)M ($1.2)M¹ NM NM 1 Adjusted EBITDA for the quarter ended December 31, 2021, was as expected given planned investments made in additional resources to support rapid growth. Not Meaningful POSABIT 23#24POSABIT GUIDANCE 2022 TOTAL REVENUE $37.0M - $40.0M TRANSACTION SALES FOR CARD SERVICES $675M - $730M GROSS PROFIT $9.0 - $10.0M POSABIT 24#25POSABIT QUARTERLY FINANCIALS Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2019 2020 2020 2021 2021 2021 2021 Gross Transactional $15.8M $11.4M $15.6M $26.7M $42.2M $47.3M $64M $87.3M $106.0M $104.7M Sales Revenue $1M $800K $942.2K $1.49M $2.33M $3.1M $3.55M $4.96M $6.4M $6.4M Gross Profit $154.5K $34.2K $70.8K $292K $575.1K $796.7K $899.7K $1.3M $1.4M $1.5M POSABIT 25#26POSABIT YEARLY FINANCIALS 2019 2020 2021 E2022 Gross Transactional Sales $54M $132M $362M $675 -$730M Revenue $3M $7.8M $21.3M $36.0-$40M Gross Margin Dollars $296.6K $1.68M $5.8M $9.0 - $10M POSABIT 26#27APPENDIX POSABIT 27#28POSABIT BOARD OF DIRECTORS Our board combines their collective cross-industry experience to enhance and support the POSABIT vision RYAN HAMLIN CEO / Co-Founder / Chairman Former Executive at Microsoft Founded PlaceFull in 2011 and had a successful exit in 2021 to Retail Management Hero (RMH) JON BAUGHER CRO / Co-Founder / Director Former VP, Sales at Placefull Has extensive senior sales leadership experience on a national and global scale. MIKE APKER Director Former CEO of Oberon Financial Technology, Former COO and Exec VP at Envestnet, 20 years at Hewlett-Packard and Silicon Graphics. DON TRINGALI Director Founder and Chief Executive Officer of Augusta Advisory Group, a US-based boutique financial and business consulting firm. LOUIS CAMHI Director Founder and Chief Investment Officer of RLH Capital, a SPAC Focused Investment Management and Advisory Firm, Former Analyst Citadel, Previously Analyst at Three Corner Global POSABIT 28#29POSABIT (CSE:PBIT AND OTC:POSAF) Frequency: DAILY 2 Price Mar 2021 May 2021 Jul 2021 Sep 2021 Nov 2021 Jan 2022 4M Volume 52-Week Price Range: .17 - 2.40 Shares Outstanding: 131,902,645 Board, Management and Associates Ownership: © quotemedia Fully Diluted Shares: 164,788,479 37% POSABIT 29#30SUMMARY BALANCE SHEET As of December 31, 2020 As of December 31, 2021 Cash $977,654 $4,418,788 Total current assets $3,341,840 $3,484,987 Total assets $3,685,719 $7,903,775 Total current liabilities $5,578,180 $5,873,959 Long-term debt $137,849 $134,510 Derivative Liability $1,026,676 $10,602,448 Total liabilities $6,742,704 $16,610,917 Stockholders' Equity ($3,056,985) ($8,707,142) Total liabilities & Equity $3,685,719 $7,903,775 POSABIT 30#31THANK YOU POSABIT CONTACT Investor Relations [email protected] CSE:PBIT OTC:POSAF www.posabit.com