January 2016 Spectra7 Microsystems, Inc. 1
What is Spectra7 We make electronic products smaller, lighter, clearer, faster and less expensive 2
Must Have Technology 39 Experts 50+ Brands 47 Patents 5 Vertical Markets Patented Single Sourced High Gross Margin Mechanical / Silicon / Speed 3
Market Opportunity 32.2% CAGR Drone Tech. NEW MARKET Augmented Reality 15.3% CAGR Wearable Tech. $5.6B by 2020 Markets and Markets $120B by 2020 Digi-Capital NEW MARKET Virtual Reality 9.2% CAGR High-End Displays $11.6B by 2020 Markets and Markets 12.55% CAGR Data Centers $30B by 2020 Digi-Capital $30.4B by 2020 Transparency Market Research $152B by 2016 Canalys
Spectra7 Team Ron Pasek CHAIRMAN CFO at Altera Corporation; VP and Corporate Treasurer Tony Stelliga CEO CEO Quellan; CEO Softcom; EVP Newbridge Micro; Divisional Director Intel Corp. Bob Dobkin DIRECTOR & INVESTOR Co-Founder of Linear Tech $11B Market Cap Dr. Andrew Kim CTO & VP, ENGINEERING PhD from MIT Dave Mier CFO 30 Years Experience in Tech; Sun Microsystems, Yahoo John Mitchell CHIEF MARKETING OFFICER 20 Years Product Marketing With Major Design Wins Charito Alcantara VP, OPERATIONS & CHANNEL MANAGEMENT 20 Years Consumer Retail Sales Experience Monster Cable, Frys Electronics, CompUSA Ebrahim Abunasrah VP, INTERCONNECT PRODUCTS GROUP 8 Years Product Development Experience Cynthia Cole VP, GENERAL COUNSEL AND CORPORATE DEVELOPMENT Over 15 years at the Intersection of Law and Technology
VR Market Opportunity
Spectra7 Announces Record Design-Ins and Expansion of Facility and Management
Multiple Design-Wins and Production Orders
Spectra7 Achieves Record Bookings in Third Quarter Appoints Vice President of Data Center Products
Revenue Growth
DisplayDirect VR VR Market Emerging Rapidly Gaming, healthcare, architecture, and business telepresence applications Spectra7 Builds Wearable VR Active InterConnects Dramatically Reduce Weight, Complexity Ultra-high bandwidth Up to 50Gbps speeds Near Zero Latency for truly immersive VR HDMI USB To a single ultra light-weight, ultra-thin VR Connect POWER From 3 heavy and bulky Cables 11
Dramatic Interconnect Miniaturization 4 1 from bulky, Data, Audio, Power, Video Cables into Ultra-thin and light VR Cable.
Diameter Reduction and Speed Improvement Up to 95% conductor cross section reduction The Resultant Cable is also up to 90% lighter and runs up to 10 Times faster. Enabled by Spectra7 s patented Active Cable Technology Enlarged cross section of bulky cable bundle Cross section of Spectra7 VR Cable Spectra7 VR Chip Technology
VR7050 For Gesture Recognition and Motion Sensing Industry Move to Gesture From Controller Extensive Processing = High Bandwidth Extensive Processing = Latency Ultra Thin Low Latency Interconnect VR7050 Addresses These Issues
VR Market Opportunity: FORECAST: Global Virtual Reality Head-Mounted Display Shipments VR: BI Intelligence (2015) Predicts: 5M Units 2016; 12M Units 2018 S7 Opportunity is $60M+ in 2018 15
AR-Connect
AR-Connect AR Purpose Built Interconnect System Ultra-Thin Wearable Interconnects Up to 50 Gbps Unified Interconnect Video, Data, Gesture, Gyro
AR Market Opportunity FORECAST: Smart Glasses Adoption AR.org (2015) Predicts 50-100M Units in 2018 S7 Opportunity is $175M+ in 2018 18
Weaveable Interconnects
DisplayDirect TM is for UltraHD Panels Industry has moved to 4K Ultra for unprecedented immersive Display Electronics requirements: 8million pixels at 50 Gb/s OEMs are still incorporating electronics behind class making display thicker and heavy
DisplayDirect TM is for UltraHD Panels DisplayDirect allows for: Video processing electronics to be removed or externalized Removal of power management Elimination of LED backlighting in favor of OLED displays Evolution of speaker technology to be replaced by a transparent vibrating membrane And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed
DisplayDirect TM is for UltraHD Panels DisplayDirect allows for: Video processing electronics to be removed or externalized Removal of power management Elimination of LED backlighting in favor of OLED displays Evolution of speaker technology to be replaced by a transparent vibrating membrane And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed
DisplayDirect TM is for UltraHD Panels DisplayDirect allows for: Video processing electronics to be removed or externalized Removal of power management Elimination of LED backlighting in favor of OLED displays Evolution of speaker technology to be replaced by a transparent vibrating membrane And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed
DisplayDirect TM is for UltraHD Panels DisplayDirect allows for: Video processing electronics to be removed or externalized Removal of power management Elimination of LED backlighting in favor of OLED displays Evolution of speaker technology to be replaced by a transparent thin vibrating membrane And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed
DisplayDirect TM is for UltraHD Panels DisplayDirect allows for: Video processing electronics to be removed or externalized Removal of power management Elimination of LED backlighting in favor of OLED displays Evolution of speaker technology to be replaced by a transparent vibrating membrane And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed, along with Metal Shielding
DisplayDirect TM is for HD Panels Glass at 3.5mm thin and 65 diagonal No need for an external power cord to stick in to the wall and ultra lite-weight Essentially a hangable, flexible poster type display The power, gesture and raw video information is delivered from the base or up to 30 ft away Interface can interpreted thru gesture recognition just like we do in VR.
HomeTheater High quality (true 1080p & 4k) Ultra Long Cables (over 30M) Over 50 Brands Using S7 Leading Customer: Monster Cable installers currently using Spectra7 Retailers and E-Tailers 27
Active-C : Ultra-Thin USB Type-C Interconnects
USB Type C For Ultra Slim Industrial Design
USB Type C Industry Initiative Worldwide shipment of USB-enabled devices - USB is the most successful interface in the history of PC - Device charging over USB has become a major consumer feature - USB installed base is 10+ billion units and growing at 4+ billion units a year - Total USB device shipments will reach 5 billion annually by 2016, an increase of 41% from 2010
Active Copper Opportunity in Data Centers $128B Market in 2016 $152B New Investment in 2016 S7 Addresses Short Reach Cluster I/C S7 Reduces OpEx and CapEx Up to 80% power reduction over fiber Reduction in data center power Up to 65% Lower Cost over Fiber Dramatically Thinner Over Copper for Increased Air Flow Much Higher Flexibility vs Copper for Greater Density
Expanding into New Vertical Markets 15M Units '14 $80M Oppy 86% CAGR 280M Base '15 $35M Oppy 9% CAGR 100M Unit Base '18 $250M Oppy 72% CAGR 70M Units Base '18 $210M Oppy >100% CAGR 150M Unit Base 18 $375M Oppy 120% CAGR 2.1B Units '14 $280M Oppy 56% CAGR 35M Units '14 $50M Oppy 12% CAGR
Share Structure and Key Statistics Shares % Common Shares Issued 125M* 100% Share Price $.415* Market Capitalization $52M* TTM Revenue (9/30/15) $4.6M USD TTM Gross Margin(9/30/15) 72% Cash Balance (9/30/15) $5.6M (USD) Attractive Financial Model Positioned for Growth 35 *As at 01/19/16 All Figures in CDN $ unless otherwise noted