CYNERGISTEK C O R P O R AT E S T R AT E G Y N O V 2 0 1 9 NYSE - PowerPoint PPT Presentation

CYNERGISTEK C O R P O R AT E S T R AT E G Y N O V 2 0 1 9 NYSE AMERICAN: CTEK Confidential and Proprietary to CynergisTek Inc.

SAFE HARBOR STATEMENTS This presentation contains, and our officers and representatives may from time to time make, “forward - looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make (herein or otherwise) regarding the size of the potential market for our services; the number of potential customers/clients for our services; plans and strategies of CynergisTek and its subsidiaries for future growth and performance; market acceptance of our business model; our ability to integrate acquisitions and merged companies; and timelines relating to growth, milestones, and strategic focus. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on ma nagement’s current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors discussed throughout Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and in Par t I, Item 1A. Risk Factors of our Annual Report on Form 10- K for the year ended December 31, 2018; and throughout Part I, Item 2. Management’s Discussion and Anal ysis of Financial Condition and Results of Operations of our Quarterly Reports on Form 10-Q for the quarters ending March, June and September. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We expressly disclaim any obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise. Confidential and Proprietary to CynergisTek Inc. 2

Topics For Today Market Direction • The latest data and opportunities we see in the healthcare security and privacy market First 100 Days 100 • Growth strategy coming out of the first 100 days as President and CEO Backbone Consultants Acquisition • Accretive growth executing on our strategy Q3 Earnings • Earnings call scheduled for November 11 th at 11AM EST Confidential and Proprietary to CynergisTek Inc. 3

Healthcare Security Market Direction Highly Targeted Industry • Every year Healthcare is in the top ten most likely to be attacked industries 1 • New research shows that 59% of all threat actors attacking the Healthcare industry come from the inside 2 • One in eight Americans have had their medical records exposed in a data breach 5 Highest Cost of a Data Breach • New research shows that data breaches in Healthcare are 65% more costly than breaches in any other industry • Average cost of a Healthcare data breach is $6.45M or $429/record 3 Skills Gap to Address the Problem Continues to Widen • 300,000 open security jobs in the United States and over 2 million world wide 4 • Particularly problematic for health systems outside major metropolitan areas Healthcare Remains Largely Unsophisticated with Information Security • Only 26% of the healthcare market is using two factor authentication – less than half the rate of the rest of the industry • Healthcare workers average 71 passwords per employee and reuse passwords across 10 systems on average 6 • Networks are almost universally not segmented Rise in Ransomware and Destructive Attacks has Kinetic Implications • In the first 10 months of 2019, 140 local governments, police stations and hospitals have been held hostage by ransomware attacks • In September a California provider was forced to close as they could no longer access medical records 8 • In October three hospitals in Alabama had to turn away patients due to a ransomware incident 9 Increasing Regulatory Pressure in Adjacent Markets • There are now 52 different breach disclosure laws in the United States and they are all different 10 • Fines are becoming real with GDPR leading the way: British Airways was fined 229M Euro; two hospitals in Europe fined over 400,000 Euro 11 • California Consumer Privacy Act comes into affect in 2020 and is modeled after GDPR • First cybersecurity claims have been paid under the False Claims Act Confidential and Proprietary to CynergisTek Inc. 4

Strategic Imperatives Deliver 1 Return to Growth - double digit growth rate by mid next year with a focus on managed services growth • Continue and strengthen CAPP growth with Threat Intelligence growth from • Grow and mature privacy monitoring, medical device monitoring and vendor security areas of • Optimize offerings and address strategic gaps strength • Reboot penetration testing / red teaming offering • Backbone Consultants acquisition 2 Reduce Managed Services Delivery Backlog • Focus on maintaining customer satisfaction Build a team 3 Strengthen our Team • Invest in stronger security and privacy skills for success Rebuild 4 Rebuild Go-To-Market • New leadership go-to-market • Return sales team to full strength • Elevate communications and brand awareness • Reboot digital presence Control costs 5 Balance Infrastructure and Overhead Requirements • Redeploy some resources to delivery and R&D • Targeted cost reductions over the next six months Confidential and Proprietary to CynergisTek Inc. 5

NIST Cybersecurity Framework IDENTIFY PROTECT DETECT RESPOND RECOVER Asset Management Access Control Anomalies and Response Planning Recovery Planning ▪ ▪ ▪ ▪ ▪ Events Business Awareness and Communications Improvements ▪ ▪ ▪ ▪ Environment Training Security ▪ Analysis Communications ▪ ▪ Continuous Governance Data Security ▪ ▪ Mitigation ▪ Monitoring Risk Assessment Information ▪ ▪ Improvements ▪ Detection ▪ Protection Risk Assessment ▪ Processes Processes and Strategy Procedures Supply Chain Risk ▪ Maintenance ▪ Management Protective ▪ Technology Confidential and Proprietary to CynergisTek Inc. 6

CynergisTek Services Strength IDENTIFY PROTECT DETECT RESPOND RECOVER CynergisTek Services Strength Security Product Marketplace 1200+ vendors Emerging Opportunity With Destructive Incidents & Data Manipulation Left of Boom BOOM Right of Boom Confidential and Proprietary to CynergisTek Inc. 7

Emerging Opportunities IDENTIFY PROTECT DETECT RESPOND RECOVER CynergisTek Services Strength Emerging Opportunity With Destructive Incidents & Data Manipulation Security Product Marketplace 1200+ vendors Security Runbooks Response Planning Incident Response Incident Management Crisis Communications Immersive Simulation Business Continuity Left of Boom BOOM Right of Boom Confidential and Proprietary to CynergisTek Inc. 8

Uniquely Positioned IDENTIFY PROTECT DETECT RESPOND RECOVER Emerging Opportunity With Destructive Incidents STRENGTH IN IDENTIFY ENABLES RESPONSE & Data Manipulation Security Runbooks Response Planning Trusted Advisor at the Executive Level Incident Response Respected Security and Industry Knowledge Incident Management Up-To-Date Local Knowledge of Environment Crisis Communications Immersive Simulation Understanding of Business Risk and Impact Business Continuity Left of Boom BOOM Right of Boom Confidential and Proprietary to CynergisTek Inc. 9

KEY HIGHLIGHTS Backbone at a Glance: • Provides cybersecurity, IT Audit and compliance and data privacy consulting services. • Led by seasoned team of former Big 4 executives who built an organization of talented and certified professionals. • Trusted advisor to some of the largest and most respected companies in healthcare and other industries. • 99% Client Retention with multiple Fortune 1,000 clients. • #1 leader in the Drug Enforcement Agency (DEA) Electronic Prescriptions for Controlled Substances (EPCS) compliance third party audit market and trusted by the top EHR vendors to certify product security. Confidential and Proprietary to CynergisTek Inc. 10

OUR MISSION: LONG-TERM GROWTH Five Year Revenue Growth Strategy to $75M $80 $75M Revenue Target Millions $70 $24 M $60 $50 $8 M $40 $30 $43 M $20 $21 M $10 $- 2018 2019 2020 2021 2022 2023 2024 Organic Adjacent Markets M&A Confidential and Proprietary to CynergisTek Inc. 11

THANK YOU! cynergistek.com NYSE AMERICA: CTEK InvestorRelations@cynergistek.com Confidential and Proprietary to CynergisTek Inc. 12