Zaio Corporation

COMPANY DATAINTRODUCTION PRODUCTS AND SERVICES
SALES AND MARKETING CONCEPT | INVESTMENT ATTRIBUTES | MANAGEMENT
NEWS UPDATE  | CHINESE

Address:  Suite 340, 1324 17th Ave. S.W.
Calgary, Alberta
Canada T2P 3S8
Tel No.:  (403) 802-2033
Fax No.: (403) 232-6711
Web Site:  www.zaio.com 
Corporate Email: rod@zaio.com 
Contact Person: Rod Mitton
Position:  CFO

COMPANY DATA

Traded Market:  TSX-V 
Traded Symbol: ZAO 
Outstanding Shares:  32.4 Million 
Public Float: 13 Million 
52 Week High: $ 2.60 
52 Week Low:  $ 0.16 
Present Price: Click Here 

INTRODUCTION

Zaio Corporation is a Canadian public company. Shares trade on the TSX Venture Exchange under the symbol ZAO. In the USA, investors can also use the trading symbol ZAOFF where the stock can be purchased in US dollars. Zaio Corporation was formed in February 2004 by an amalgamation of four companies. Since that time capital has been raised by way of private placements of stock.zaio1.jpg (27854 bytes)

Zaio is in the process of photographing and appraising each and every property in cities across the United States. That means every house, commercial building, industrial and institutional structure is being photographed and appraised property-by-property and street-by-street. This historic event is called "Photographing America." The resulting database of images and valuations is called "GeoPic," and is a useful resource for real estate, mortgage and insurance industries. The photographs are also an effective aid to police, fire and ambulance dispatching. Zaio has developed proprietary software and systems to continuously maintain and update the database as properties change and redevelopment occurs.

PRODUCTS AND SERVICES

The following are some of the proprietary technology developed and used by Zaio:

  • GeoPic Collector software: Organizes the photographer's photos and data, and transmits it to Zaio.

  • Quality Control software: Used by Zaio's quality control to review every photo collected. All data must pass strict quality standards; deficient records are rejected and reworked.

  • Integration software: Acceptable data is integrated into a master database and matched up with parcel data from local assessment offices. Images and data are then available for viewing online.

  • Market Value Control Panel: Web-based software used by appraisers to view and interact with images and data from Zaio's servers. Allows an appraiser to enter GeoScore ratings, sort records, select and balance comparable sales, and produces report cards that show predicted values against actual sales over time.

  • GeoScore PDA: Pocket PC application with synchronization software that interacts with Zaio's servers to transfer images, property data and values onto the storage card of the handheld for appraiser field inspection. Changes made on the PDA are synchronized back to Zaio's main servers.

  • GeoPic Online Search: Allows clients to search and view individual address photos and then immediately receive the attached appraisal or valuation report. The GeoPic search engine may be placed on or linked from any real estate related website such as websites of a participating Zone Appraiser, MLS websites or mortgage lender intranet sites.

  • Data Backup Systems: All of the data received by Zaio is fully backed up and duplicated for offsite storage and disaster recovery should the need arise.

GeoPic is licensed for business use by real estate boards, banks and insurance companies. Zaio manages and monitors access to the residential database and has installed measures to ensure its security. Only those with a legitimate requirement for a photo are given access.

GeoPic may be used free of charge by the police, fire and emergency service departments. This can help emergency service providers respond to an emergency more quickly by making visual images available to dispatch centers and responding units before rescuers arrive at the scene of a call. By using GeoPic images, emergency services personnel have an accurate assessment of properties in question and can plan their response accordingly.

SALES AND MARKETING CONCEPT

All cities across the United States have been segmented into photography "Zones". Each Zone has a population of approximately 30,000 people and is independently owned and operated by a Zaio "Zone Photographer" and "Zone Appraiser". The Zone Photographer's initial task is to photograph the front exterior view of every property in the Zone as it appears from the street or other public space. When a Zone Photographer has photographed an entire Zone, the photographs are catalogued and integrated with other Zones to form Zaio's GeoPic database. Commercial images appear on Zaio's visual search engine while residential images are secured and password protected. Zone Photographers are then available to generate interior images and content of products, services, inventories, staff and decor for businesses within each Zone. Zone Photographers also deliver visual content for real estate sales, financing and insurance and other custom digital photography orders in a consistent and timely fashion.

Zaio has mapped out a five year program for launching a comprehensive nationwide database that has garnered the attention of national lenders and the appraisal industry.

The database will include 7,500 zones and 75 million properties in 250 major centers in the United States on completion in 2011.

  • Started in 2006, Zaio has so far sold 600 zones throughout the United States

  • Zaio's current database of 2.5 million properties should triple by the end of 2007

INVESTMENT ATTRIBUTES

  • The only known company in the world that develops and maintains a site-verified database of photos, valuations and property information offering

  • A unique business model with a revolutionary approach to the appraisal industry which allows appraisers to produce instantaneous, accurate and objective reports for its clients

  • A high growth company with an estimated potential market of $7 billion including residential appraisals, real estate databases, directories and advertising media

  • Multiple revenue streams including residential lenders, portfolio managers, appraisal management firms, real estate professionals, property insurance companies and homeowners

  • A strong management team of experienced managers and appraisers with 100+ years of combined experience

  • Cash flow positive with no debt

  • Strategic growth through acquisition (Realink acquisition agreement announced March 12th, 2007)

MANAGEMENT

Zaio Corporation has a well management team with experience in different areas.

Thomas J. Inserra, Chief Executive Officer
Mr. Inserra was elected to the roles of President, CEO and Board Member on 7/1/2006, and was recruited by the Board to lead the Company through what is expected to be a period of rapid growth. He has an extensive background in the real estate valuation and lending industries including roles as National Chief Appraiser for the Federal Deposit Insurance Corporation (FDIC) and Resolution Trust Corporation (RTC) in Washington DC. The FDIC is a federal agency that insures and regulates banks in the United States and the RTC was established in 1989 by Congress to help resolve the $402 billion banking and S&L crisis. In those roles Mr. Inserra co-authored federal appraisal regulations for all U.S. banks that remain in affect today, and testified before the U.S. Congress on banking and real estate appraisal issues.

Rodney Mitton, Chief Financial Officer
Mr. Mitton, CA is Chief Financial Officer and a director of Zaio Corporation. From October 2001 until November 2002 Mr. Mitton was the Chief Financial Officer of Nevis Energy Services Ltd., a TSX-V listed company providing directional drilling services to the oil and gas industry. Since September 1994, he has been the President of RTK Enterprises Inc., a private financial consulting company.

Kirk Slone, Vice President, Technology
Prior to joining Zaio, Mr. Slone was the Senior Software Engineering Manager for Captaris Inc. Mr. Slone was the lead architect for a world-class enterprise .NET Workflow software application. He successfully managed a software development team committed to following industry-leading development methodologies.

Brad Stinson, Vice President, Business Development
Mr. Stinson is the founder of Zaio. He began photographing entire cities from the street in 1995 while operating a successful residential appraisal business. Mr. Stinson's early systems captures and catalogued 1.7 million digital real estate images across Canada. He was a mortgage underwriter prior to his appraisal career.

Frank O'Neill, Jr., SRA - Director, Appraiser Training and Operations
Mr. O'Neill is the National Director, Appraiser Training and Operations for Zaio. His role is to lead training, develop advanced market analysis techniques, and coordinate appraisal operational efforts of thousands of appraiser experts throughout the United States. His career as an appraiser began in 1985 and since then he has developed experience appraising a wide variety of single family, multifamily, and commercial properties. Mr. O'Neill is an SRA designated member of the Appraisal Institute.

John W. Ross, Vice President, Sales
Mr. Ross of Chicago, Illinois is Vice President for Market Development and Strategy. Mr. Ross most recently served as CEO of the Appraisal Institute, a position he held for the past nine years. Founded in 1932, the Appraisal Institute is the largest appraisal organization in the USA., and is known for its "MAI" and "SRA" professional appraisal designations.

Douglas Vincent, Managing Director, National Chief Appraiser
Mr. Vincent has over 20 years appraisal and management related experience in various capacities; promoted through roles as Independent Appraiser, Staff Appraiser, National Reviewer, National Review Manager, Chief Reviewer, Chief Quality Assurance Analyst, Chief Appraiser, and Chief Collateral Officer. His most recent role just prior to joining Zaio Corporation was as an Executive-Vice President for Countrywide Bank, where he served as the Chief Appraiser prior to taking on the broader role as Chief Collateral Officer.


NEWS UPDATE

On April 11, 2007 Zaio Corporation announced that their fourth quarter and 2006 year-end financial results. The company demonstrated improvement in its balance sheet by ending 2006 debt-free with CDN$3.2 million cash compared with CDN$107,000 at year end 2005. Revenue in the fourth quarter of 2006 increased by 241% to CDN$175,000 (US$154,000) compared to CDN$51,000 (US$46,000) in the third quarter of 2006 and increased 262% compared to CDN$48,000 (US$41,000) in the fourth quarter of 2005. Net Income in the fourth quarter of 2006 was a loss of CDN$775,000 (US$680,000) compared to a loss of CDN$121,000 (US$103,000) in the fourth quarter of 2005.

On April 4, 2007, Zaio Corporation announced that its board of directors, on April 3, 2007, approved the issue of 150,000 share options to an officer of Zaio at an exercise price of $1.90 per share. The options have a term of five years and vest one-third immediately, one-third after one year and the balance after two years from the date issued.

On April 3, 2007, Zaio Corporation announced that it has completed the acquisition of the assets of Realink Corporation, a privately held company with offices in Tempe, Ariz. The assets will be owned by the Company's wholly owned U.S. subsidiary, Zaio Inc.

"We are excited about the combined capabilities of the Zaio and Realink teams," said Thomas J. Inserra, Chief Executive Officer of Zaio. "Our group now includes a much larger well-trained and experienced staff having relationships with over 4,000 local appraiser experts and 30 lenders located throughout the United States. In addition, the Company now has the capital, technology, human resources, products and customer relationships necessary to fully expand our business."

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