Focus Universal Inc. · NASDAQ:FCUV
Focus Universal — IPO Roadshow (December 2019)
30 slides from Focus Universal's IPO roadshow presentation, Dec 13, 2019
Slide 1: Investor Presentation December 2019
December 2019 OTCQB: FCUV Investor Presentation
Slide 2: Legal Disclaimer
Legal Disclaimer 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 or implied
Slide 3: Offering Overview
Offering Overview 3 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
Focus Universal Overview Focus Universal (Focus) is a Universal Shared Internet of Things ( USIoT ) developer and manufacturer. The core technology of Focus is built on a Universal Smart Instrumentation Platform (USIP), which provides a universal solution for embedded design, industrial monitoring a
Slide 5: What is IoT?
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 interaction. Fo
Slide 6: What We Solve – IoT Devices
What We Solve – IoT Devices 6 Traditional Machine to Machine IoT Focus USIP Wireless Network Focus PLC Network
Slide 7: What We Solve - IoT Hardware Design
Current hardware design from the scratch approach for each device is not efficient for the IoT devices in the market today. Customized design and lack of standardization of IoT devices results in Machine - to - Machine IoT which isn’t interoperable or interchangeable with other devices. Generalizati
Slide 8: Market Potential
Market Potential The industrial control and factory automation market is expected to reach $269.5 billion by the year 2024 at a compound annual growth rate (CAGR) of 9.08% from 2018 to 2024 [1], the smart sensor market is expected to grow to $57.77 billion by the year 2022, at a CAGR of 18.1% betwee
Slide 9: How We Solve It
How We Solve It 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 and
Slide 10: Focus Universal IoT vs Traditional IoT
Focus Universal IoT vs Traditional IoT 10 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 Traditional Sensor - Router Communication Cloud - Smartphone Communication Cloud - Computer Communication Windows Software Router - Cloud Communication IOS App Android App Internet Security Linux Software Mobile Software Sensor Data Acquisition and analysis USIP Sensor Data Acquisition and analys
Slide 12: Patented Technology - USIP
Patented Technology - USIP “Universality” is the philosophy behind the Focus Universal patented technology. “Universal Smart Device” U.S. Patent No. 9924295 Issued in March 2018. The USIP utilizes a mobile device or computer to communicate with smart devices (sensors, probes, controllers) to monitor
Slide 13: Patented Technology – PLC
Patented Technology – PLC 13 Powerline Communication (PLC) enables sending data over existing power cables. PLC international patent application no. PCT/US2019/63880 filed 11/29/19. This reduces new fees for new communications infrastructure, but instead uses the existing power lines. The power line
Slide 14: Patented Technology – AGSD
Patented Technology – AGSD 14 Manual software design for IoT devices using multiple foundations is often time costly and inefficient. Focus invented Auto - Generating Software Design (AGSD) technology, U.S. Patent Numbers 9924295 and 10,251,037 to solve the software design time and cost issues. The
Slide 15: Business Model
Business Model Distributor Sales – Focus Universal currently grosses $1M of 3 traditional light sensor s for horticulture industry to the largest reseller in the US. The company plans to launch over 500 sensors compatible with our USIP by 2020 to sell through the same channels. Licensing/White Label
Slide 16: Product Pipeline
Product Pipeline 16 Smart Home Design completed and tested Lighting Control Air Conditional Control Sprinkler Garden Light Heating Floor Control Motorized Curtain Pool Filtration control Pool Algae Chlorine Control Smoke detector Design in progress - Expected Q1 2020 completion. Carbon Monoxide moni
Slide 17: Industry Penetration
Industry Penetration Focus adds real time monitoring, analytics and control to any industry. 17
Slide 18: Competitive Advantage
Competitive Advantage Universal Customization – the AGSD technology to modifies and customizes applications within our app. Cost Saving – design and hardware design for monitor and control functions is reduced. Interoperability - centralizing all sensors and measuring equipment into one device allow
Slide 19: Competitive Advantage – Wireless Network
Competitive Advantage – Wireless Network 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. Wireless IoT Issues: Cost – up to 4x more Coverage – limited range Dependability –
Slide 20: Competitive Advantage – Current Wired Issues
Competitive Advantage – Current Wired Issues 20 The lighting control and Cat Cables is eliminated by utilizing the existing power grid and USIP. Current wired IoT solutions utilize Cat 5 and Cat 6 cables, which has issues with cost and reliability.
Slide 21: Growth Opportunity
Growth Opportunity Product Development – With our current sales into the largest horticulture reseller in two markets (the U.S. and EU), we plan to penetrate this market first with our products. Large Scale Commercial Contracts – Our technology provides an opportunity to secure large scale industria
Slide 22: Management
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 Chemi
Slide 23: Board Members
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 on
Slide 24: Recent Acquisition
Recent Acquisition Closed an acquistion of AVX Design and Integration in Q1 of 2019. The company is an integrator and planner of IoT and AV devices for residential and commerical buildings. The company adds an installation and planning arm to the business. This provides a sales channel and installat
Slide 25: Financials
Financials 25 (In Thousands) As of Sept 30, 2019 Cash and Cash Equivalents $2,760 Property and Equipment $4,697 Goodwill $162 Total Liabilities $444 Equity $7,769 Income Statement Balance Sheet (In Thousands) As of Sept 30, 2019 Revenue $995 Cost of Sales $752 Gross Profit $243 Operating Expenses $2
Slide 26: FCUV Stock Analysis
FCUV Stock Analysis 26 Focus Universal OTCQB: FCUV Stock Price (12/2/19) $5.00 Shares Outstanding 40.96 M Public Float 9.94 M Market Cap Value $204.80 M Cap Table OTCQB: FCUV Desheng Wang (CEO) 14,392,400 35.14% Edward Lee (Director) 8,400,000 20.51% Remaining Shareholders 18,107,600 44.21% Total Sh
Slide 27: Company Investment Highlights
Company Investment Highlights 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. Innovative Product Development – Universal sensor node, gateway system, smart
Slide 28: Corporate Information
Corporate Information 28 Attorney: Wilson, Bradshaw & Cao LLP 18818 Teller Ave., Suite 115, Irvine, CA 92612 917 - 830 - 6517 gbradshaw@wbc - law.com Transfer Agent: Island Stock Transfer 15500 Roosevelt Blvd, Suite 301 Clearwater, FL 33760 727 - 289 - 0010 Auditor: BF Borgers CPA PC 5400 West Cedar
Slide 29: Appendix A: Smart Home Advantage
Appendix A: Smart Home Advantage 29 Large component racks Miles of Wiring Multiple machines needed Cost exceeds 100K Regular updates needed Zero redundancy Multiple Touch Pads Crestron USIP
Slide 30: Appendix B: References
Appendix B: References 30 [1] - https://www.marketsandmarkets.com/Market - Reports/factory - industrial - automation - sme - smb - market - 541.html. [2] - http:// www.marketsandmarkets.com /Market - Reports/smart - sensor - market - 43119772.htmlMultiple machines needed [3] - https://www.mckinsey.c