Crowdfunding Investor Deck, March...
Transcript of Crowdfunding Investor Deck, March...
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THIS DOCUMENT IS NOT A PROSPECTUS OR OFFERING MEMORANDUM AND CANNOT BE RELIED UPON BY THE READER OR AUDIENCE IN ANY WAY. All statements, trend analysis and other information contained in this presentation relative to markets for our services and products and trends in revenue, gross margin and anticipated expenses levels, as well as other statements about anticipated future events or results constitute forward-looking statements. Forward-looking statements are subject to known and unknown business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on current estimates and opinions of management and speak only as of the date the statements are made. Potential investors should not place any reliance on forward-looking statements contained in this presentation.
Crowdfunding Investor Deck, March 2017
Confidential -- Not for Distribution
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Overview
3D interaction is here today but
prices are still too high for adoption
in most consumer electronics
XYZ licenses its patented low-cost
3D sensor technology that enables
mass-market adoption in ALL
consumer electronics devices
Annual revenue now at 2m, mostly
from stable licensing sources. 93%
CAGR for the last 5 years.
Entering new revenue areas with
significant growth potential
Additional investment and partnerships will fuel growth
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Gartner July 2015 Hype-CycleOur technology fuels both maturing and nascent markets
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XYZ firmware + 1$ common components = 3D magicXYZ uses a highly scalable licensing business model
Our code fits easily
on sub-dollar
microcontrollers
All components
are already
mass-produced
Pitch to product designers: “Add touchless, 3D positioning, and gesture
control to your products for the cost of a cup of regular coffee”
Technology – simple to implement
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Technology - protected
5
Patents and Trademarks -- Granted and Pending
5
Unique core
methods allow for
novel range
measurement
Patents cover broad
range of licensable
implementation
options
Pursuing nationally
in key customer
geographies
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Competitive Summary: 3D Sensing
Technology BaseOptical
LEDs & Receivers
Optical
(Camera)
Capacitive /
ElectrostaticAcoustic
Use at 6+ inches Yes Yes No Yes
Good response time Yes Yes No No
Low Power Yes No Yes Yes
No Blind Spots Yes No Yes Yes
M2M Beacon
SensingYes No No No
Cost to OEM 1x 10x 2x 2x
Breakthrough performance and price point through technical differentiation
GestIC®
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Market Traction
7
Identify
Market
Develop
& CalibrateMarket
Design
& Optimize
Growth from within existing verticals and new market entry
Toys
Lighting
Automotive
Wearables
Retail
Robotics
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1st Deal in
Toys
WowWee using XYZ’s techas Robot Toy’s vision system
1st Deal in
Lighting / IoT
Ubiquilux launched the e-motion GestureSwitch for smart lighting
1st Deal in
Robotics
SparkFun supplying sensors for Robotics and Maker markets
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MiPosaur – in marketUses BeaconSense to chase his ball!
Around head
With ball
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R.E.V. – in marketUses BeaconSense for AI chasing and tracking
• AI mode uses
BeaconSense to
navigate, chase, and
fire automatically
• Beacons in SmartRamps for enhanced and autonomous gameplay
• Relative angular position for determining hit/miss & location on enemy car!
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R.E.V. AIR – in marketUses BeaconSense for AI chasing and tracking
• AI mode uses
BeaconSense to
navigate, chase, and
fire automatically
• Wearable for follow-me functionality
• Base-station for automomous hover and guard mode
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CHiP – in marketUses BeaconSense for AI chasing and tracking
• BeaconSense in a watch accessory allows CHiP to follow his owner
• BeaconSense in a dock accessory allows CHiP to recharge autonomously
• BeaconSense in his ball allow CHiP to track and fetch
• GestureSense provides situational awareness
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Key Project in Automotive
XYZ was selected as one of 10 Canadian companies to be
showcased in a fully operational demonstrator vehicle
• Toyota donated Lexus RX-350
• QNX completed in-vehicle integration
• Canadian government support and funding
Demo vehicle now on tour
Initial use-cases:
• Infotainment control
• Phone answering
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What’s next – Robotics
• Obstacle avoidance
• Wall following
• Simple commands
• In-room positioning
• Docking
• Following
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What’s next – Retail Analytics
• People Counting
• Dwell Time
• Measure simple interactions (e.g.
proximity, stock level change, etc.)
• In-room positioning
• Orientation
• Proximity
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What’s next – Wearables
• Watches and pendants for Humans
• Simple infotainment controls
• Proximity effects
• Collars and pendants for Pets
• Beacons on household items
• Training, Playing, Feeding use-cases
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Michael Kosic
P.Eng (UofT), MBA (INSEAD)
CEO
20 Years in technology leadership and business
development including angel and venture-
backed technology start-ups, as well as 4 years
as a senior director at a fortune 100.
25 Years technical experience and patenting
(including 14 authored, and others while at
Nortel), RF engineering, analog and digital
circuits, DSP software, at Litton and Honeywell.
Andrew Lohbihler
M.Math (Waterloo)
CTO
Valentin Burtea
P.Eng, Ph.D.
Head of Software
15 Years Post-Doctoral experience in signal
processing, software and product development.
Technical leadership at Northrop Grumman,
Xerox, Nortel, and Texas Instruments.
Core TeamSeasoned technologists and leaders with previous startup experience
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Validation: Social Proof
Named one of the “Top 25 Up and Coming ICT Companies”
Launched in prestigious Toronto-based MaRS Incubator
Winner of 2011 Plug and Play EXPO in Sunnyvale, California
Winner of BNN “The Pitch” competition
Winner of Canada 3.0 Road to Banff
Early Press Wins:
Advisors include experienced tech executives and industry luminaries
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FinancialsAggressive growth possible with additional funding
FYE – May 31st
Amounts in M $CAD2013 2014 2015 2016
Total Revenue $0.13 $0.48 $1.0 $1.9
Total Expenses $0.15 $0.36 $0.6 $0.7
Headcount 3 3 3 5
Simplified EBITDA -$0.02 $0.12 $0.4 $1.2
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Ask & Use of Proceeds Raise Target: $3-5M
Use of Proceeds :
– Increase core team – Day to day activities (from operations to research and
development); Customer development
– Compress sales cycles with use-case specific prototypes – Sales Demos
– Add engineering staff to service customer demand – Fuel the Funnel
– Increase marketing and sales staff and improve demos – Create more Pull
– Expand patent portfolio – Create and claim more IP
– If >5M raised then invest in JVs with customers (WowWee, Ubiquilux, etc…)
Prior Investments and Share transactions:
–2009 Friends and Family: $460K debt
–2012 Angel Round: $230K, $460 previous debt converted into common shares
–2016 Share Buyback: $325K
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Summary
Market is experiencing explosive growth
Disruptive value proposition (more for less)
Defensible competitive position
Relevant traction with the industry
– XYZ has design wins and licensing deals in CE, Lighting and Robotics
– Generating licensing revenue from industry players; customers shipping product
– Early Press Wins:
Investment enables explosive growth for an already solid company with highly
stable revenues
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For more information contact
Michael Kosic
CEO
+1 416 898 0820
Thank You