Slide 1: Investor Presentation
OTCQB: FCUV Investor Presentation December 2019
Slide 2: Forward Looking Statements
2 Forward Looking Statements The statements in this presentation that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed
Slide 3: Offering Overview
3 Offering Overview Issuer Focus Universal Inc Exchange/Ticker OTCQB: FCUV Proposed listing Nasdaq Capital Market Offering Size 2,000,000 Price Range $4.00 – $6.00 Over Allotment Option 15% (100% Primary) Use of Proceeds Working capital, product development, including potential strategic acquisition
Slide 4: Focus Universal Overview
4 Focus Universal Overview n Focus Universal (Focus) is a Universal Shared Internet of Things (USIoT) developer and manufacturer. n The core technology of Focus is built on a Universal Smart Instrumentation Platform (USIP), which provides a universal solution for embedded design, industrial monitori
Slide 5: What is IOT?
5 What is IOT? n Traditional Internet of Things (IoT) is a system of interrelated computing devices, mechanical machines, digital machines or objects that are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer intera
Slide 6: What We Solve – IoT Devices
6 What We Solve – IoT Devices Traditional Machine to Machine IoT Focus USIP Wireless Network Focus PLC Network
Slide 7: What We Solve - IoT Hardware Design
7 What We Solve - IoT Hardware Design n Current hardware design from the scratch approach for each device is not efficient for the 21.5 billion IoT devices in the market today. n Customized design and lack of standardization of IoT devices results in Machine-to-Machine IoT which isn’t interoperable
Slide 8: Market Potential
8 Market Potential n The industrial control and factory automation market is expected to reach $202.42 billion by the year 2020 at a compound annual growth rate (CAGR) of 6.73% from 2015 to 2020 [1], the smart sensor market is expected to grow to $57.77 billion by the year 2022, at a CAGR of 18.1% b
Slide 9: How We Solve It
9 How We Solve It n Complexities of Making Devices Smart - The core value of the technology is the consolidated process for smart device development by reducing cost and time using and sharing the same common foundation of IoT. The Focus USIP starts from 90% completed in terms of hardware, software
Slide 10: Focus Universal IoT vs Traditional IoT
10 Focus Universal IoT vs Traditional IoT Traditional FCUV Traditional IoT Hardware Design Design foundation for all Design From Scratch Software design Auto machine design Coded From Scratch Network Backbone Power Grid Wireless Network Infrastructure Preexisting Does not exist Network Service Fee F
Slide 11: Universalization of Traditional IoT to Focus IoT
11 Universalization of Traditional IoT to Focus IoT Traditional Traditional Machine to Machine IoT USIoT Sensor Data Sensor Data Acquisition Acquisition and analysis and analysis Linux Windows Sensor-Router Software Software Android App Communication Universalization Cloud-Computer Router-Cloud Clou
Slide 12: Patented Technology - USIP
12 Patented Technology - USIP n “Universality” is the philosophy behind the Focus Universal patented technology. “Universal Smart Device” U.S. Patent No. 9924295 Issued in March 2018. n The USIP utilizes a mobile device or computer to communicate with smart devices (sensors, probes, controllers) to
Slide 13: Patented Technology – PLC
13 Patented Technology – PLC n Powerline Communication (PLC) enables sending data over existing power cables. PLC international patent application no. PCT/US2019/63880 filed 11/29/19. n This reduces new fees for new communications infrastructure, but instead uses the existing power lines. n The powe
Slide 14: Patented Technology – AGSD
14 Patented Technology – AGSD n Manual software design for 21.5 billion IoT devices using multiple foundations is costly and inefficient. n Focus invented Auto-Generating Software Design (AGSD) technology, US patent 10,251,037 to solve the software design time and cost issues. n The user interface m
Slide 15: Business Model
15 Business Model n Distributor Sales – Focus Universal currently sells $1M of 1 traditional light sensor for horticulture industry to two of the largest resellers in the US. The company plans to launch over 500 sensors compatible with our USIP to sell through the same channels. n Licensing/White La
Slide 16: Product Pipeline
16 Product Pipeline Smart Home Industrial IoT Design completed and tested Design in progress - Expected Design completed and tested Q1 2020 completion. n Lighting Control n Lighting Control n Carbon Monoxide monitoring n Air Conditional Control n Temperature Control n Motion Detector n Sprinkler n H
Slide 17: Industry Penetration
17 Industry Penetration Focus adds real time monitoring, analytics and control to any industry.
Slide 18: Competitive Advantage
18 Competitive Advantage n Universal Customization – the AGSD n Security – our devices have a sensor security technology to modifies and customizes built into the USIP. applications within our app. n Scalability – the USIP allows end users to connect n Cost Saving – design and hardware design hundre
Slide 19: Competitive Advantage – Wireless Network
19 Competitive Advantage – Wireless Network n The USIP solution is a closed loop process passing the information collected from the sensors through the gateway device and into an application through power line connection. n Wireless IoT Issues: n Cost – up to 4x more n Coverage – limited range n Dep
Slide 20: Competitive Advantage – Current Wired Issues
20 Competitive Advantage – Current Wired Issues Current wired IoT solutions utilize Cat 5 and Cat 6 cables, The lighting control and Cat Cables is eliminated by utilizing which has issues with cost and reliability. the existing power grid and USIP.
Slide 21: Growth Opportunity
21 Growth Opportunity n Product Development – With our current sales into two of the largest horticulture resellers, we plan to penetrate this market first with our products. n Large Scale Commercial Contracts – Our technology provides an opportunity to secure large scale industrial, government, edu
Slide 22: Management
22 Management Dr. Desheng Wang - Dr. Wang is the CEO, Secretary, Director and Founder. He served as a senior research fellow at California Institute of Technology from 1994- 2011. He holds a Masters degree from Dalian Institute of Chemical Physics at the Chinese Academy of Science and a Ph.D. in Che
Slide 23: Board Members
23 Board Members Michael Pope - Mr. Pope has lead over 70 M&A transactions and raised over $500 million in debt and equity financings. He brings specific experience with fundraising, investor relations, mergers and acquisitions, and corporate strategy. Mr. Pope holds an active CPA license and serves
Slide 24: Recent Acquisition
24 Recent Acquisition n Closed an acquistion of AVX Design and Integration in Q1 of 2019. n The company is an integrator and planner of IoT and AV devices for residential and commerical buildings. n The company adds an installation and planning arm to the business. This provides a sales channel and
Slide 25: Financials
25 Financials Income Statement Balance Sheet (In Thousands) As of Sept 30, 2019 (In Thousands) As of Sept 30, 2019 Revenue $995 Cash and Cash Equivalents $2,760 Cost of Sales $752 Property and Equipment $4,697 Gross Profit $243 Goodwill $162 Operating Expenses $2,074 Total Liabilities $442 Net Loss
Slide 26: FCUV Stock Analysis
26 FCUV Stock Analysis Focus Universal OTCQB: FCUV Cap Table OTCQB: FCUV Stock Price (12/2/19) $5.00 Desheng Wang (CEO) 14,392,400 35.14% Shares Outstanding 40.96 M Edward Lee (Director) 8,400,000 20.51% Public Float 9.94 M Remaining Shareholders 18,107,600 44.21% Market Cap Value $204.80 M Total Sh
Slide 27: Company Investment Highlights
27 Company Investment Highlights n Patented Technology – The Universal Smart Device patent provides an advantage in the IoT industry to build a new software network for devices to monitor and control data with hardware devices. n Innovative Product Development – Universal sensor node, gateway system
Slide 28: Corporate Information
28 Corporate Information Attorney: Corporate: Auditor: Wilson, Bradshaw & Cao LLP CEO Desheng Wang BF Borgers CPA PC 18818 Teller Ave., Suite 115, 626-272-3883 5400 West Cedar Avenue Irvine, CA 92612 desheng@focusuniversal.com Lakewood, CO 80226 917-830-6517 gbradshaw@wbc-law.com Transfer Agent: Bus
Slide 29: Appendix A: Smart Home Advantage
29 Appendix A: Smart Home Advantage n Large component racks n Miles of Wiring n Multiple machines needed n Cost exceeds 100K n Regular updates needed n Zero redundancy n Multiple Touch Pads Crestron USIP