Slide 1: Investor Presentation
Nasdaq: FCUV Investor Presentation 2022
Slide 2: Internet of Things (IoT) Today
Internet of Things (“IoT”) Today IoT refers to the overarching network created by billions of internet-compatible devices and machines that share data and information between each other. Photo Credit: samyakinfotech.com (May 2021)
Slide 3: Market Potential
The Internet of Things (IoT) Market 2019-2030 24.1 billion $1.5 trillion loT connected devices in 2030 (7 19) loT revenue in 2030 gus: TRANSFORMAG INSIGHTS Market Potential
Slide 4: Core Extensions of Physics Laws
Core Extensions of Physics Laws Universal Smart Instrumentation Platform (USIP), the universal hardware and software integration platform allows ICs to be integrated from component level up to device level. Introducing universal software to IC allows multiple ICs be further integrated together, push
Slide 5: Focus Universal Overview
Focus Universal Overview Universal Shared Internet of Things (US-IoT) Our patented universal smart technologies integrate multiple integrated circuits on the device level, pushing the frontier of semiconductor technology to the limits of Moore's law. Current technology can only integrate on the comp
Slide 6: Focus Universal Overview (cont.)
Focus Universal Overview (cont.) 3. Ultranarrow Band Wireless Communications (UNBWC), next generation wireless communication technology, 100x faster than current 5G, UNBWC allows a two order of magnitude longer range coverage, 100,000x more energy efficiency, 4,000x more bandwidth efficiency, and mu
Slide 7: Ultranarrow Band (UNB) Communication Technology
Ultranarrow Band (UNB) Communication Technology 7
Slide 8: What We Solve – Communication Networks
What We Solve – Communication Networks 5G 5G+ • Data Rate – 1 Gbps • Data Rate – 1 Gbps • Range – 1/3 mile • Range – 20+ miles • Power Consumption – • Power Consumption – 2X to 9X more than 4G Up to 6,000X less than 5G Wireless Router Communication Power Line Communication (PLC) 8
Slide 9: 5G Technical Limitations and Challenges
5G Technical Limitations and Challenges Frequency Band • 4G LTE already operates on established frequency bands below 6GHz, 5G requires frequencies — all the way up to 300GHz. In the US, millimeter wave spectrum auctions netted $4.47 billion. • Limited range requires further infrastructure. • Higher
Slide 10: 4G, 5G and Ultranarrow Band (UNB) Technology
4G, 5G and Ultranarrow Band (UNB) Technology Technology Bandwidth(MHz) No. of subcarriers Operating Frequency Speed Spectral efficiency MHz GHz Mbps bits/s/Hz 4G 20 1200 6 4-60 6 5G 100 3276 up to 300 40-1100 10 • If UNB speed will increase propoationally if it adopts multiple subcarriers (equivalen
Slide 11: Ultra Narrowband Powerline Communication
Ultra Narrowband Powerline Communication Power Line Communication (PLC) The current PLC market is dominated by Narrowband and Broadband Communications. The primary issue holding back widespread adoption of PLC is the harsh electrical noise disturbance present in power lines. UNB-PLC overcomes the PL
Slide 12: Patented Technology – PLC
Patented Technology – PLC Powerline Communication (PLC) enables sending data over existing power cables. PLC international patent application no. PCT/US2019/63880 filed 11/29/19. Uses the existing power lines and reduces new fees for communications infrastructure. The harsh noise environment of the
Slide 13: Competitive Advantage – Legacy Wiring
Competitive Advantage – Legacy Wiring 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. 13
Slide 14: 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 existing power cables. Wireless IoT Issues: • Cost – up to 4x more • Coverage – limited range • Dependabil
Slide 15: Ultra Narrowband Wireless Communication (UNBWC)
Ultra Narrowband Wireless Communication (UNBWC) 5G++ Current 5G cellular communication has reached several critical operational limits, including high energy costs for 5G base stations. Focus Universal 5G++ has the potential to provide longer range and higher data rate than current 5G systems. 5G++
Slide 16: Patented Technology
Patented Technology • “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 an
Slide 17: Universal Smart Instrumentation Platform
Universal Smart Instrumentation Platform USIP unifies heterogeneous measurement and control devices into a single universal device (Ubiquitor). The USIP utilizes a mobile device or computer to communicate with smart devices (sensors, probes, controllers) to monitor and control any functions, thus re
Slide 18: Natural Integrated Programmable Language
Natural Integrated Programmable Language Source: Cowen Software Developer Survey, Getting In On The Ground Floor: Surveying Software Developers On Key Tech Trends, September 18, 2017 18
Slide 19: Universal Shared Distributed IoT Devices
Universal Shared Distributed IoT Devices are easy to implement and enjoy significant cost savings, design and production efficiency Traditional Machine to Machine IoT Focus IoT Wireless Network Focus PLC Network 19
Slide 20: Device On A Chip (DoC)
Device On A Chip (DoC) DoC technology has the potential to offer lower costs, greater reliability, faster time-to-market and simpler product design in a compact size for the next generation of IoT device production. The platform utilizes a mobile device or computer to communicate with smart devices
Slide 21: Products and Execution
Products and Execution ❖ Currently Selling into Controlled Agriculture and Home Automation Markets – The company sells the main controller / metering solution for the controlled Ag industry to Hydrofarm (Nasdaq: HYFM) and through our fully owned subsidiary sells home automation products like Crestro
Slide 22: Smart Greenhouse
22 Smart Greenhouse Smart Greenhouse
Slide 23: IoT Smart Meter For Agriculture
Ten separate interoperable and interchangeable sensors allows collaborative interaction. Kits will contain 9 different sensors that will measure CO2, O2, Ph Balance, Humidity, Temperature, Lighting. IoT Smart Meter For Agriculture
Slide 24: Product Pipeline: Smart City/building IoT
24 Product Pipeline: Smart City/building IoT ■ Focus has developed a suite IoT devices to using the Smart Building USIP for Home, Office, Warehouse, Golf Course, Community, Campus, City lights, Parks, and etc. Design completed and tested Lighting Controls ■ Carbon Monoxide Air Conditioning Contr
Slide 25: Products and Execution
Products and Execution ❖ Currently Selling into Controlled Agriculture and Home Automation Markets – The company sells the main controller / metering solution for the controlled Ag industry to Hydrofarm (Nasdaq: HYFM) and through our fully owned subsidiary sells home automation products like Crestro
Slide 26: Company Investment Highlights
Company Investment • Patented Technology – The Universal Smart Device patent provides an advantage in the IoT industry to build a new software network for devices to monitor Highlights and control data with hardware devices. • Innovative Product Development – Universal sensor node, gateway system, s
Slide 27: Thank You
Thank You
Slide 28: Current Opportunity
Current 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 indu
Slide 29: Business Model
• Distributor Sales – Focus Universal currently grosses $1M of 3 traditional light sensors 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 – The compa
Slide 30: Significant Market
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% between 2016 and 2022 [
Slide 31: Industry Penetration
Focus Universal adds real time monitoring, analytics, and control to any industry Industry Penetration
Slide 32: Focus Universal IoT
Focus Universal Traditional FCUV Traditional IoT IoT Hardware Design Unified foundation for all Design From Scratch Software design Auto machine design Coded From Scratch Network Backbone Power Grid Wireless vs Network Infrastructure Preexisting Does not exist Network Service Fee Free At a cost Over
Slide 33: Fundamental Challenges of IoT
IoT Challenges Communication Challenges • Lack of universal Fundamental operating system • Wired – cost of materials and Challenges • No interoperability between smart devices installation too high of IoT • Security risks with • Wireless – poor signal quality, short distance industrial and range, sl
Slide 34: Problems Solved
• Extend Moore’s law. Increasing the degree of IC integration from components to device level, shifting focus from making small transistor only to massive scale of integration. Problems • Break through the Shannon Law’s critical limit which current 5G cellar communication is reaching, overcome the c
Slide 35: 5 Disruptive Platform Technologies
Security – sensor security built into the USIP. 5 Disruptive Scalability – allow end users to connect hundreds and eventually thousands of sensors together. Platform Fast prototyping – design cycle reduced from a few years to a few weeks for developer and manufacturers. Technologies Universality – o
Slide 36: Competitive Advantage
Universality – one device works for Competitive customized applications. Advantage Cost Saving –different instruments share the same USIP, which leads to up to 90% cost saving. Interoperability - centralizing all sensors and measuring equipment into one device allows for reusability and interoperabi
Slide 37: Focus' Common Foundation
Traditional software programming requires software engineers to write complex programs and provide consistent maintenance for the coding between physical devices and smartphones. By standardizing the hardware design and simplifying software development and coding, we believe Focus’ technology may sa
Slide 38: Product Pipeline
Industrial IoT Smart Home Design completed and tested Design completed and tested Design in progress - Carbon Monoxide monitoring • Lighting Control • Lighting Control • Motion Detector • Temperature Control • Air Conditional Control • Flood Detector • Humidity Control • Sprinkler • Doorbell • Carbo
Slide 39: Understanding Ultranarrow Band (UNB)
• UNB employs an ultra-narrow spectrum channel (<1KHz) to establish an ultra-long-distance link between transmitter and receiver. Understanding • It offers superb link budget due to the concentration of power in a narrow frequency band and low in-band Ultranarrow receiver noise. Band (UNB) • It allo
Slide 40: Natural Integrated Programmable Language
Focus Software Machine Auto Design Manual software design is time (SMAD) technology, U.S. Patent Numbers consuming and inefficient. Software 9924295 and 10,251,037 generates the engineer is not required. software via machines. Natural Integrated The USIP saved at the display unit utilizes the microc
Slide 41: Natural Integrated Programmable Language
NIPL an efficient middle layer between programming languages and app software. Natural The user interface microcode is saved at the sensor node module. This interface Integrated microcode is sent to the centralized controller (Ubiquitor) and then to the display unit. The USIP saved at the Programmab
Slide 42: Universal Smart Devices enjoy significant cost savings
Switching sensors in our universal smart Universal Smart Devices platform requires solely changing from one kind of device to another without any software enjoy significant cost revision or hardware redesign. savings, design and Customized design and lack of standardization production efficiency, an
Slide 43: Ubiqutor Consolidates Household Devices
Ubiqutor Consolidates Household Devices
Slide 44: Commercial controls are not compatible or interoperable
Air conditioner controller Swimming pool controller Sprinkler controller Commercial controls are not compatible or interoperable
Slide 45: FOCUS Educational Training
FOCUS Educational Training • Focus’s Educational Training program fosters and strengthens the skills for both employees and local entrepreneurs by enabling access to new capital. The program provides entrepreneurs with extensive access to tools and experiences • The program aims to educate and raise
Slide 46: FCUV Certification Program
FCUV Certification Program • Focus Universal (FCUV) Certification program trains developers and engineers to master interoperable device design using Focus Platforms: Natural Integrated Programmable Language (NIPL) and universal smart implementation platform • Designers will be FCUV certified after
Slide 47: FOCUS Innovation & Incubation Program
FOCUS Innovation & Incubation Program • Focus Universal’s Incubator Program is designed for individuals and businesses to explore, incubate, and ultimately, accelerate the launch of new products • Together with our IoT solutions, they can offer innovative products to consumers and business customers
Slide 48: Incubator for IoT Project
Incubator for IoT Project • FCUV’s expert technology analysts will evaluate and approve select technologies and companies that could prove disruptive to the IoT industry. These companies will collaborate with the FCUV team and utilize the company’s resources to further refine and deploy these techno
Slide 49: Notable Board Members
Carine Clark- Ms. Clark is a talented executive serving as president and CEO of four high- growth tech companies, specializing in helping companies scale exponentially. She has 49 received numerous awards including the EY Entrepreneur Of The Year® Award in the Utah Region and Utah Business Magazine'
Slide 50: Corporate Information
Corporate Information Investor Relations: Attorney: The Blueshirt Group Wilson, Bradshaw & Cao LLP 100 Montgomery St., Suite 1600 18818 Teller Ave., Suite 115, Irvine, CA 92612 San Francisco, CA 94104 917-830-6517 415.217.2632 gbradshaw@wbc-law.com lauren@blueshirtgroup.com Transfer Agent: Island St
Slide 51: APPENDICES
APPENDICES
Slide 52: Appendix A: FCUV Financials
Income Statement (In Thousands) As of Dec 31, 2021 Revenue $ Cost of Sales $ Gross Profit $ Operating $ Appendix A: Expenses Net Loss $ FCUV Balance Sheet (In Thousands) As of Dec Financials Cash and Cash 31, 2021 $ Equivalents Property and $ Equipment Goodwill $ Total Liabilities $ Equity $ 52
Slide 53: Appendix B: Equity Overview
Company Focus Universal Inc. Exchange Nasdaq Ticker FCUV Analyst Argus Research (BUY, $15.00 price target) Coverage Media Benzinga: “Focus Universal Optimizing Appendix B: Coverage Widespread IoT and 5G Adaptation” (11/29/21) Equity https://www.benzinga.com/markets/eme rging-markets/21/11/24354179/f
Slide 54: Appendix C: FCUV Stock Analysis
Focus Universal Nasdaq: FCUV Stock Price (12/31/21) $10.00 Shares Outstanding 40.96 M Appendix C: Public Float 15.7M Market Cap Value $400 M FCUV Stock Cap Table Desheng Wang (CEO) Nasdaq: FCUV 14,392,400 35.14% Analysis Edward Lee (Director) 8,400,000 20.51% Remaining Shareholders 18,107,600 44.21%
Slide 55: Appendix D: References
[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.com/industries/semiconductors/our- insights/the-interne
Slide 56: Appendix E: Case Study – AVX Design
• 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. Appendix E: • The company adds an installation and planning arm to the business. This provides a sales channel and installati
Slide 57: Appendix F: Legal Disclaimer
Appendix F: 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
Slide 58: Appendix G: Risk Factors
Appendix G: Risk Factors • The size and future growth in the market for our Ubiquitor device or our PLC technology under development has not been established with precision and may be smaller than we estimate, possibly materially. If our estimates and projections overestimate the size of this market
Slide 59: Appendix H: Cautionary Statement Regarding Forward Looking Statements
Appendix H: Cautionary Statement Regarding Forward Looking Statements Filed pursuant to Rule 433 of the Securities Act of 1933, as amended. This free writing prospectus related to the proposed initial public offering of ordinary shares of Focus Universal Inc. (“FCUV” or the “Company””), which are be