Vuzix Corporation · NASDAQ:VUZI
Vuzix — Investor Presentation (December 2014)
27 slides from Vuzix's investor presentation, Dec 5, 2014
Slide 1: Corporate Overview December 2014
a VvVuZzIx View the Future Corporate Overview December 2014
Slide 2: Cautionary Note Regarding Forward Looking Statements
vuze www.vuzix.com Cautionary Note Regarding Forward Looking Statements ‘Certain statements included in this presentation may be considered forward-looking, All statements in this presentation that are not historical {facts are forward-looking statements. Such statements involve known and unknown rz
Slide 3: Vuzix Background
oo Ov Vuzix Background + Founded 1997 - Worldwide operations + Leading supplier of Wearable display technology - Initial focus US Defense markets + Cornerstone IP and Patent Portfolio - 39 patents and 10 patents pending - Over $20 million invested plus $19 million in US Government R&D dollars + Empl
Slide 4: Wearable Technology — The Revolution is Just Beginning
oo Ov Wearable Technology — The Revolution is Just Beginning The market opportunity will be huge + ABI Research forecasts the wearable computing device market will grow to 485 million annual device shipments by 2018 + More than 75 million of these will be wearable display or Smart Glasses, creating
Slide 5: Smart Glasses will Gain Traction in Enterprise First
yo vuzEs www.vuzi Smart Glasses will Gain Traction in Enterprise First + Google made popular but not ready for consumer: Monocular products aren't fashionable and so won't fit for average consumers, but will for business No killer or compelling apps over modem smart phone/tablet to attract mass mark
Slide 6: Vuzix M100 Smart Glasses Features — Focused on Enterprise
yo vuzEs www.vuzix.com Vuzix M100 Smart Glasses Features — Focused on Enterprise + Hands-free wearable display, computing & communications platform * Digital see-through display with 1080p camera + Earbud & microphone + Inertial sensors, compass & GPS + Voice recognition, gesture recognition + WiFi
Slide 7: Real Time, Hands Free, Info on Tap, Image/Video Capture, Scan Code Reading and More
Real Time, Hands Free, Info on Tap, Image/Video Capture, Scan Code Reading and More...
Slide 8: A Growing List of Industry Leading Customers & Partners
oo Ov A Growing List of Industry Leading Customers & Partners + Global fortune 500 companies have purchased M100 Smart Glasses. + Including: Transportation, Retailers, Telco's, Refiners, Medical, Manufacturing, Warehousing, Airlines, Automotive, etc... metaio pristine MarSott A> ISAPA UBIMAX, © wisc
Slide 9: SAP and Vuzix: The future of Field Service
oo OV UZ SAP and Vuzix: The future of Field Service SAP has multiple application: final test and about to release for the M100 Warehousing to Field Service http:/jwww.youtube.com/watch?v=UlpGDrSmg38
Slide 10: Beginning the Move from Initial Trials to Rolling out Programs
So Oz Beginning the Move from Initial Trials to Rolling out Programs Examples in field service, warehousing, manufacturing and more....
Slide 11: Partnerships with companies like Lenovo and NTT docomo
Partnerships with companies like Lenovo and NTT docomo Vuzix and Lenovo Partnership Building Eco-System and } Exclusive China Sales Co-Branded Vuzix “Powered by Lenovo” = décomo CEATEC JAPAN 2013 SPECIAL SITE Language Translation Visual and Voice Facial Recognition and Face Tracking Open Mobile Alli
Slide 12: Vuzix Leading the Industry with the Introduction of V720 Video Headphones
Vuzix Leading the Industry with the Introduction of V720 Video Headphones WINNER OF 4 CES 2015 AWARDS + Next Gen Video Head Phones Think Beats headphone with a 120” hi def. Video experience + HDMI 3D and streaming WiFi ready + Designed for PCs, Consoles, Smartphones + 720P - highest resolution with
Slide 13: For Mass Market the Smart Glasses Form Factor Needs Improvement
oo Ov www.vuzi: But, for Mass Market the Smart Glasses Form Factor Needs Improvement + One of the most frequent questions | get: When will Vuzix finally hire a fashion ID firm? Well, its not quite that easy + Conventional refractive and reflective optics simply have limits Conventional Optics for Vi
Slide 14: Vuzix Technology and IP - Solves the Problem
oo Ov Vuzix Technology and IP - SOLVES THE PROBLEM + Waveguides (patented) that allow true eyeglass form factors = Revolutionary way to move light and magnify = 1.4mm thin so not bulky like conventional optics = Provides significant improvements in mass, costs and optical performances. + Large FOV H
Slide 15: Purpose built Waveguide Optics for fashionable Smart Glasses
oo Ov Purpose built Waveguide Optics for fashionable Smart Glasses + New Rochester manufacturing facility operational 9/2/2014 + Proprietary Nano-Imprinting for Low Cost Manufacturing + HD very thin optics with large FOVs + Easily scalable to mass market levels
Slide 16: Smart Glasses — B Series for Enterprise and Consumer
oo OV UZ www.vuzix.com Smart Glasses — B Series for Enterprise and Consumer + Will deliver on the promise that Google Glass tried to provide + Vuzix Waveguide based optics engine + First binocular fashion-wear smart glasses coming mid 2015 + Hands-free operation by voice and gesturing + Hiresolution
Slide 17: How we do things will Evolve Again
How we do things will Evolve Again
Slide 18: Going to Market Globally
oo OE www.vuzix.com Going to Market Globally + US — Multi-year history with Direct accounts and major national distributors + EMEA — Distributors and VARs in 30+ countries + Web store with fulfillment and warehouses in US, UK, EU, and Japan + Apple.com has offered in over 22 EU countries + Exploring
Slide 19: Executive Management
oo Ov Executive Management Paul J. Travers, Founder and President and Chief Executive Officer More than 25 years experience in the consumer electronics field, and 20 years experience in the virtual reality and virtual display fields with Vuzix being his third successful startup Grant Russell, EVP an
Slide 20: Interim Financial Data — months ended Sept
oo ov Interim Financial Data — 9 months ended Sept 30 9Mths Sept30, 9 Mths Sept 31 2014 2013 Total Sales $2,186 $1,778 Cost of Sales 4372 934 Gross Margin 814 844 Operating Expenses z 4001 * 3.854 Operating Loss =3.187 Interest and Other 488 Gain (Loss) on Derivative Valuation 2125 Net Income (Loss)
Slide 21: Balance Sheet Data
Net Fixed Asset & Intangibles 4,948 4,182 TOTAL ASSETS 3, Current Liabilities 1874 661 Long-term Debt 1,122 203 Derivative Liability - Long term * 9,924 12,036 Total Liabilities 3.917 76,900 Share Capital 27,869 23,254 (Deficit) 37,842 36,292 Stockholder’s Equity (Deficit) 3573 =13,038 Total Liabili
Slide 22: Capitalization Table
oo OV UZ Capitalization Table ‘Common Shares - Outstanding Currently - 10,816,363 Preferred Stock - - Convertible Debt (excludes interest) $2.25 1,066,667 Warrants - Outstanding $2.75 6.211,411 Options - Outstanding $4.41 736,274 Fully Diluted 18,830,715 Recent Events: + 322,800 warrants exercised f
Slide 23: Vuzix 2014
oo Ov Vuzix 2014 + Have been transitioning from older products lines that were standalone video viewers with standard definition to Smart and soon HD devices + Have been focused on ‘seeding’ key accounts and developers with our M100. + Investing heavily in our OS 2.0 for our smart glasses and have a
Slide 24: Vuzix in 2015
yo vuzEs www.vuz' Vuzix in 2015 + Expecting continued growth with the M100 as an Enterprise solution with pilots soon to move to wider adoption (10s to 1000s) + Expanding developer base and continued launch of new applications, all supported with Vuzix App Store + Strengthen and expand partnerships
Slide 25: Vuzix Investment Highlights
oo Ov www.vuzix.com Vuzix Investment Highlights + Acknowledged as one the world leaders in Smart Glasses, established over the last 20 years, and at the front end of market opportunities in the billions of dollars + Extensive comerstone IP and technology base in wearable displays and smart glasses +
Slide 26: Thank You
Qa vuzpe www.vuzix.com jy VUZIX View the Future Thank You
Slide 27: Vuzix CEO Paul Travers Featured on Fox Business’ Opening Bell
Vuzix CEO Paul Travers Featured on Fox Business’ Opening Bell with Maria Bartiromo Recorded August 2014 — available at: http:/Awww.executiveinterviews.com/delivery/v1/mini/default.asp?order=U15738US OPENING BE —