Precision Optics Corporation, Inc. · NASDAQ:POCI
Precision Optics — Investor Presentation (October 2019)
24 slides from Precision Optics's investor presentation, Oct 3, 2019
Slide 1: Corporate Presentation October 2019
Corporate Presentation October 2019 OTCQB: PEYE
Slide 2: Forward-Looking Statements
Forward - Looking Statements This presentation contains forward - looking statements. Forward - looking statements include, but are not limited to, statements th at express the Company’s intentions, beliefs, expectations, strategies, predictions or any other statements related to the Co mpa ny’s fut
Slide 3: Enabling Next Generation Technologies
Enabling Next Generation Technologies Precision Optics ENABLES leading medical devices companies around the world to meet the increasing demands of the surgical community who are requiring more enhanced and SMALLER IMAGING SYSTEMS FOR MINIMALLY INVASIVE SURGERY as well as the rapid proliferation of
Slide 4: Company Overview
Company Overview ► Precision Optics (PEYE) has been a leading developer and manufacturer of advanced optical instruments for more than 35 years addressing the medical device and defense market. Recent focus has been on: ► Micro Optics ► 3D Endoscopes ► Business model transition driving rapid growth
Slide 5: Year Old Growth Story
35 Year Old Growth Story 1980’s ► Founded in 1982 ► Focused on medical devices, introducing first sterilizable endocouplers ► Expansion into defense sector as sole supplier of optics for night vision goggles to ITT 1990’s 2000’s 2010’s Today 5 ► Went public in 1990 to support night vision work and p
Slide 6: Financial Highlights
Financial Highlights $950,305 $1,528,325 $3,668,737 $3,668,737 $828,585 $1,226,191 $1,165,657 $1,165,657 $1,375,658 $1,283,532 $1,313,543 $1,313,543 $656,232 $4,391,686 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2017 2018 2019 2019 Pro Forma Production Optical Components
Slide 7: Leader in Micro and 3D Optics
LEADER IN MICRO AND 3D OPTICS
Slide 8: MicroPrecision Optics
MicroPrecision Optics ► Millimeter sized and smaller cameras with low manufacturing costs ► Small size can provide visualization for new procedures in new parts of the body and for existing procedures that are currently performed blind or with sub - optimal imaging. Facilitates the development of ne
Slide 9: 3D Endoscopes and Robotic Surgery Systems
3D Endoscopes and Robotic Surgery Systems ► One of only a handful of companies in the world to design and provide 3D endoscopes ► Precision Optics 3D endoscopes provide next generation optical imaging for minimally invasive surgical procedures, many employing medical robotic technology, by using the
Slide 10: Traditional Applications
Traditional Applications ► Complex endocoupler production for more than 30 years ► Specialized endoscope for top tier medical company for more than 20 years ► Custom spinal surgery product utilizing Precision Optics illumination technology for top tier medical company for more than 10 years ► Multip
Slide 11: Vertically Integrated Capabilities
Vertically Integrated Capabilities 11 Onsite Engineering, Machine Shop, Optics Lab & Assembly Design To Production Design For Manufacturability Rapid Development Of New Concepts Efficient Manufacturing High Volume Production Material Sourcing ► Vertically integrated capabilities enable Precision Opt
Slide 12: Current Products Recently Transitioned From Pipeline To Production
CardioFocus , Inc. Cardiovascular Endoscope ► HeartLight Endoscopic Ablation System ► $2.2 million follow - on order in April 2019 ► Monthly deliveries are scheduled to be made over two years 1 2 Undisclosed Medical Device Customer Otoscopy Device ► Next generation technology for custom hearing aids
Slide 13: Rapid Commercialized Product Growth
Rapid Commercialized Product Growth $1,778,890 $2,754,516 $4,834,394 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2017 2018 2019 Production and Optical Components ► 3 products that have reached commercialization level production since beginning of 2018 ► Early indications are
Slide 14: Expanding Product Pipeline (September 2019)
Expanding Product Pipeline (September 2019) Product Feasibility Study Prototype Design Prototype Fabrication Pilot Production Industry Subsegment Customer Cardiovascular Endoscope Medical Device Cardiac CardioFocus Otoscopy Device Medical Device Otoscopy Large Medical Device Micro Optics Components
Slide 15: Expanding Markets for Micro Optics & 3D
Expanding Markets for Micro Optics & 3D 15
Slide 16: Ross Optical Industries Acquisition
Ross Optical Industries Acquisition ► Extends product offering to include a wider range of lens and optical system sizes ► Expands presence in the U.S. defense sector where Ross has a significant number of customers that do not overlap with POC ► Allows the combined company to leverage Precision Opt
Slide 17: Go Forward Strategy Summary
17 ► Drive growth and efficiencies in currently commercialized products ► Advance pipeline projects to commercialization ► Maintain competitive advantages in micro optics and 3D imaging in medical devices, while expanding applications of existing technologies to defense market ► Disciplined investme
Slide 18: Financials
FINANCIALS
Slide 19: Revenue
Revenue 19 $3.9 $3.2 $4.0 $6.8 $10.5 $0 $2 $4 $6 $8 $10 $12 2016 2017 2018 2019 2019 Pro Forma Annual FY ends June $1.5 $2.4 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Q418 Q419 Quarterly FY ends June $ Million $ Million Pro forma as included in 10 - K filed on September 26, 2019
Slide 20: Gross Margins
Gross Margins 20 24.1% 24.5% 36.7% 31.2% 36.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 2016 2017 2018 2019 2019 Pro Forma Annual FY ends June 38.2% 35.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Q418 Q419 Quarterly FY ends June Pro forma as included in 10 - K filed on September 26, 2019
Slide 21: Adjusted EBITDA
Adjusted EBITDA 21 ($43,421) $35,835 $700,163 ($100,000) $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2018 2019 2019 Pro Forma Annual FY ends June $147,481 $161,966 $140,000 $145,000 $150,000 $155,000 $160,000 $165,000 Q418 Q419 Quarterly FY ends June See page 22 for Ad
Slide 22: Income Statement
Income Statement 22 Q1 Q2 Q3 Q4 FY 2018 Q1 Q2 Q3 Q4 FY 2019 Revenues 1,028,746 812,773 735,597 1,460,932 4,038,048 1,559,458 1,477,851 1,386,454 2,380,406 6,804,169 Stock option expense 8,669 - - - 8,669 - - - 11,233 11,233 Other 633,335 512,551 499,444 902,131 2,547,461 1,096,951 1,122,129 930,518
Slide 23: Pro Forma Income Statement Adjustments
Pro Forma Income Statement 23 Adjustments Precision Optics Corporation, Year Ended 6/30/2019 Ross Optical Industries, Inc. Year Ended 6/30/2019 Owners’ Compensation and Acquisition Expenses Bank Debt Interest Added Depreciation Expense Federal Income Tax Expense Pro Forma Year Ended 6/30/19 (Note 1)
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights 24 6/30/2016 6/30/2017 6/30/2018 6/30/2019 As if Ross Closed 6/30/19 Cash and cash equivalents $50,059 $118,405 $402,738 $2,288,426 $870,085 Accounts receivable, net $750,380 $468,548 $796,923 $2,165,107 $2,165,107 Inventory $1,133,451 $1,055,447 $1,144,068 $1,734,604 $1,734
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