Slide 1: Investor Presentation June 2016
Investor Presentation June 2016
Slide 2: Forward-looking statements
This presentation contains certain forward-looking statements that we believe are within the meaning of the federal securities laws. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements, including the regarding our strategy, futur
Slide 3: PEN: Company Overview
PEN: Company Overview - Groundbreaking consumer and industrial products nanotechnology company (OTCQB: PENC) - Roll up of nanotechnology pioneers Nanofilm Ltd. and Applied Nanotech, Inc. in August 2014 - 30 years experience commercializing products enabled by nanotechnology - Portfolio of 25 product
Slide 4: Investment Highlights
Investment Highlights IP and R&D talent drive new product development Growth strategy focused on value creation i Leap in innovation from 2014 business combination Experience taking Products command products to high profit margins commercial reality ec INC. Products Enabled by Nanotechnology 4 ee)
Slide 5: Solid market position and respected brands
cuneity - Solid market position and respected brands DEFOG it) STOP memwumes - 25 commercial and industrial products YOU NEVER SAW COMING - Flagship products: Ultra Clarity® eyeglass cleaners and Defog It™ anti-fog products eu - Gross margins ~40% - 45% - Other product categories: ~ * Precision inje
Slide 6: CLARITY Brand Expansion: New Products, Categories and Channels
CLARITY™ Brand Expansion: New Products, Categories and Channels - New CLARITY™ branded products = CLARITY™ ADVANCED 6:1 cleaner targeting consumer electronics category = CLARITY™ FREE alcohol free eyeglass cleaner - Expanding into mass market retail channel = Targeting national drug store chains, co
Slide 7: Applied Nanotech R&D in Austin, Texas
- Located in Austin, Texas - Focused on new product R&D for PEN and contract R&D for government and private entities - 20+ years of nanotechnology R&D expertise - IP portfolio with 75 patents in a broad range of technical areas - Latest breakthroughs = Graphene foils used in medical imaging = Multif
Slide 8: Environmentally friendly surface protector and fortifier
- Environmentally friendly surface protector and fortifier - Uses the natural antimicrobial properties of copper salt at the nanometer scale - Protects surfaces against bacteria, germs and viruses - Consumers want safe and effective solutions that protect against pathogens without using harsh chemic
Slide 9: 50,000 square-foot facility in Valley View, Ohio
- 50,000 square-foot facility in Valley View, Ohio - Fill and package over 500,000 units per week - Manufactures all formulations in-house to ensure quality control and protect technology Bottle Line Individual Foil Packaging Line - B77 inc. Products Enabled by Nanotechnology
Slide 10: Experienced Management Team
Experienced Management Team Dr. Scott E. Rickert: Chairman of the Board, CEO, President + 25 years of experience in commercialization of nanotechnology-enabled products * Founded Nanofilm in 1985, launched his first commercial product within two years * B.S. from Cornell University and a Ph.D. from
Slide 11: Experienced Management Team
Experienced Management Team Dr. Zvi Yaniv: Vice President Strategic Innovation * Globally recognized scientist and innovator with over 300 patents + Degrees in physics, mathematics, and electro-optics as well as a Ph.D. in Physics Dr. Richard Fink: President Applied Technology * Over 20 years experi
Slide 12: Financial results
Product revenue 9,177,568 R&D services revenue 772,909 Total revenues 9,950,477 Gross profit 5,650,116 Gross profit margin 43.2% Gross profit product segment 45.4% Operating expenses? 4,657,035 Net loss (non-GAAP)? (437,110) Net loss per share (non-GAAP)54 Weighted avg shares — diluted* 2,203,563 Ca
Slide 13: Growth strategy
+ Identify growing markets with unmet needs * Create innovative, best- in-class products in new categories + Expand existing brands into new channels (PO ine Products Enable + Leverage rich IP portfolio and nanotechnology expertise * Develop effective products which use nature’s methods to keep us s
Slide 14: Thank you!
Thank you! Investor Relations Contact Elaine Ketchmere 844-273-6462 ir@pen-technology.com www.penc.us SEC Attorney: Legal & Compliance LLC Auditor: Salberg & Company, P.A ec INC. Products Enabled by Nanotechnology 14 ee)
Slide 15: Appendix 1: Corporate Structure
Appendix 1: Corporate Structure PEN Inc. a Delaware Corporation Nanofilm, Ltd. Applied Nanotech, Inc. PEN Technology LLC an Ohio LLC a Delaware Corporation a Florida LLC PS INC. Products Enabled by Nanotechnology 15
Slide 16: Appendix 2: Equity Overview and Ownership
Appendix 2: Equity Overview and Ownership - Symbol PENC - Exchange OTCQB - Price (May 24, 2016) $2.99 - Market Cap $9.0 million (shares in thousands) ights % % Total Common Equity Shares? 10,000.0 2,999.4 Class A Common Stock 7,200.0 1,340.5 44 44.8% 0.9% Class B Common Stock 2,500.0 1,396.3 100:1 4
Slide 17: Appendix 3: Reconciliation of Non-GAAP Financial Measures
Appendix 3: Reconciliation of Non-GAAP Financial Measures Po imc Operating Expenses $6,590,179 $5,081,142 Add back: impairment of intangible assets $1,933,144 $188,051 Adjusted non-GAAP operating expenses $4,657,035 $4,893,091 Net Loss ($2,370,254) ($1,869,247) Add back: impairment of intangible ass