Vislink Technologies, Inc. · OTC:VISL
Vislink Technologies — xG Technology — IPO Roadshow (April 2014)
22 slides from Vislink Technologies's IPO roadshow presentation, Apr 4, 2014
Slide 1: Solving the Spectrum Crisis
xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Solving the Spectrum Crisis Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration No. 333 - 194810 April 3, 2014
Slide 2: Free Writing Prospectus Disclosure
2 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Free Writing Prospectus Disclosure Link to documents on www.sec.gov On April 3, 2014, the issuer, xG Technology, Inc., filed a Registration Statement on Form S - 1/A Amendment N
Slide 3: Safe Harbor Statement
3 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Safe Harbor Statement These materials have been prepared by xG Technology, Inc . (“xG” or the “Company”) solely for use at the presentation and have not been independently verif
Slide 4: Offering
4 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Offering Offering $10 million Over - Allotment $1.5 million Market Cap (4/1/14) $47.7 million Exchange/Ticker NASDAQ Capital Market / XGTI and XGTIW Use of Proceeds Working capi
Slide 5: About xG Technology
5 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com About xG Technology THE COMPANY • 10 years experience developing wireless communications technologies • Headquartered in Sarasota, FL; engineering facilities in Fort Lauderdale,
Slide 6: Investment Considerations
6 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Investment Considerations • Imminent spectrum crisis not solvable with existing approaches • xG’s industry - leading technology provides unique solution • $35 billion market opp
Slide 7: Problem
7 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Problem Wireless demand will far exceed capacity in only three years time * • Global mobile data traffic will increase 11X from 2013 to 2018 , 61 % CAGR • Driven by increased us
Slide 8: Cognitive Radio Solution
8 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Cognitive Radio Solution xMax ‘sees through’ the spectrum clutter, eliminates interference and allows optimal use of licensed and unlicensed spectrum Provides benefits to users
Slide 9: Leader in Cognitive Radio
9 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com System on a Chip Extent of Competitors’ Cognitive Radio Technology xG’s Cognitive Radio Network Solution MANET (Mobile Ad - Hoc Network) Interference Mitigation MIMO (Multiple i
Slide 10: Intellectual Property
10 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Foreign patents 138 64 issued/ 74 pending US patents 60 49 issued/ 11 pending US PATENTS Area Issued Pending Cognitive Radio - Cognitive media access control layer 17 7 - Cogni
Slide 11: xMax Cognitive Radio Network
11 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Public (Internet) or Private Networks xMSC SMS server xMax Cognitive Radio Network Network core xMod Intellectual Property Breakdown Smart phones, laptops or any device with Wi
Slide 12: Addressable Markets = $35B
12 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Rural Telcos - $1.2B Time to Market Penetration LTE - $2B Cable - $3B Incumbent Carriers - $13B Cumulative Addressable Market = $35B = markets from which xG has received orders
Slide 13: Key Milestones
13 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com • Regulatory: FCC certification of all four radio components of xMax product suite • Performance: – xMax enhanced for reliable delivery of key cognitive capabilities – Dynamic
Slide 14: Backlog: $34.6M
14 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com DoD/PUBLIC SAFETY/DHS DHS $5.9M RURAL TELECOM $17.9M OTHER $10.8M TELEMEDICINE Booked business secured by purchase order or purchase contract Backlog: $34.6M
Slide 15: 2014 Strategy
15 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com • Finalize external production and testing • Sales and marketing efforts focused on three key markets – Rural telco – Public safety – Security • Continuous innovation – Double/
Slide 16: Capitalization Table
16 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Capitalization Table Security As of March 31, 2014 % Fully Diluted Common Shares 18,800,654 78.4% Outstanding Warrants 4,246,096 17.7% Outstanding Options 931,873 3.9% Fully Di
Slide 17: Balance Sheet
17 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Balance Sheet AUDITED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA)
Slide 18: Income Statement (Three Months)
18 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Income Statement AUDITED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) For the Three Months Ended December 31, 2013 2012 Revenue $ 373 $ — Cost of revenue and
Slide 19: Income Statement (Year)
19 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Income Statement AUDITED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) For the Year Ended December 31, 2013 2012 Revenue $ 406 $ — Cost of revenue and operatin
Slide 20: 2013 Current Market Development
20 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com 2013 Current Market Development
Slide 21: Management Team
21 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Rick Rotondo VP Marketing • Cofounder, Spectrum Bridge • Motorola, Lucent, Mesh Networks Chris Whiteley VP Bus. Dev. • 10+ years wireless networking • @Link Networks James Wood
Slide 22: Investment Considerations
22 xG® and xMax® are registered trademarks of xG Technology, Inc. Copyright 2014, All Rights Reserved. www.xgtechnology.com Investment Considerations • Imminent spectrum crisis not solvable with existing approaches • xG’s industry - leading technology provides unique solution • $35 billion market op