Slide 1: Corporate Presentation October 2021
OTCQB: PEYE Corporate Presentation October 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements. Forward-looking statements include, but are not limited to, statements that express the Company’s intentions, beliefs, expectations, strategies, predictions or any other statements related to the Company’s future activ
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: 35 Year Old Growth Story
35 Year Old Growth Story 1980’s 1990’s 2000’s 2010’s Today ► Founded in 1982 ► Went public in 1990 to ► Entry into telecom ► Joe Forkey becomes CEO ► Products moving into ► Focused on medical support night vision industry developing in 2011 to drive new commercial level devices, introducing work and
Slide 6: Revenue Ramp
Revenue Ramp FY End June $15,197,574 $16,000,000 $14,000,000 $12,000,000 $10,674,907 $9,923,337 $9,436,814 $10,000,000 $8,000,000 $6,804,169 $7,904,427 $6,000,000 $8,533,032 $4,038,048 $4,000,000 $3,154,547 $5,490,626 $2,754,516 $5,760,760 $2,000,000 $1,778,890 $2,770,480 $1,375,658 $1,283,532 $1,31
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 new
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: Imaging Electronics and Systems
Imaging Electronics and Systems ► With the growing movement towards CMOS sensors in next generation devices, imaging system electronics are becoming increasingly critical to creating optimal solutions to our customer’s requirements. ► Our product development team has extensive experience developing
Slide 11: 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 ►Multiple M
Slide 12: Ross Optical Industries Acquisition & Integration
Ross Optical Industries Acquisition & Integration ► Extends product offering to include a wider range of lens and optical system sizes Incorporated in 1989, Ross Optical has ► Expands presence in the U.S. defense sector where Ross has a significant number of customers that do evolved from an optical
Slide 13: Lighthouse Imaging Acquisition
Lighthouse Imaging Acquisition ► Acquisition combines two of the industry’s leaders in medical optics and digital imaging, leveraging Precision Optics next generation capabilities in micro-optics and optical systems with Lighthouse Imaging’s advanced capabilities and strong reputation in leading-edg
Slide 14: Vertically Integrated Capabilities
Vertically Integrated Capabilities Broad Optical Capabilities All Under One Roof Onsite Engineering, Design To Design For Rapid Development Material Efficient High Volume Machine Shop, Production Manufacturability Of New Concepts Sourcing Manufacturing Production Optics Lab & Assembly Engineering Pr
Slide 15: Expanding Product Pipeline
Expanding Product Pipeline Feasibility Prototype Prototype Product Pilot Production Industry Subsegment Customer Study Design Fabrication Multiple Mature “Legacy” Products Medical Device Multiple Multiple Cardiovascular Endoscope Medical Device Cardiac CardioFocus Otoscopy Device #1 Medical Device O
Slide 16: Growth of Commercialized Products
Growth of Commercialized Products ► Reaching “critical mass” for production supports broader resources (and greater efficiency) which helps accelerate future growth ► Once medical device products reach commercialization they tend to continue for long time periods: Two Precision Optics legacy product
Slide 17: Expanding Markets for Micro Optics, 3D & Imaging Systems
Expanding Markets for Micro Optics, 3D & Imaging Systems 17
Slide 18: Go Forward Strategy Summary
Go Forward Strategy Summary ► 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 mark
Slide 19: Financials
FINANCIALS
Slide 20: Revenue
Revenue Annual Quarter FY ends June FY ends June $12 $3.0 $10.7 $2.7 $9.9 $10 $2.5 $2.2 $8 $2.0 $6.8 $ Million $ Million $6 $1.5 $3.9 $4.0 $4 $1.0 $3.2 $2 $0.5 $0 $0.0 2016 2017 2018 2019 2020 2021 Q4 20 Q4 21 20
Slide 21: Gross Margins
Gross Margins Annual Quarterly FY ends June FY ends June 40% 35% 36.7% 35% 34.0% 29.4% 30% 29.2% 32.2% 31.2% 30% 25% 24.1% 24.5% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% 2016 2017 2018 2019 2020 2021 Q4 20 Q4 21 21
Slide 22: Adjusted EBITDA
Adjusted EBITDA Annual Quarterly FY ends June FY ends June $100,000 $50,000 $35,835 $23,665 $0 ($24,718) $0 ($43,421) ($100,000) ($200,000) ($50,000) ($300,000) ($400,000) ($100,000) ($500,000) ($150,000) ($600,000) ($700,000) ($200,000) ($800,000) ($763,419) ($207,721) ($900,000) ($250,000) 2018 20
Slide 23: Income Statement
Income Statement FY End June FY 2018 Q1 Q2 Q3 Q4 FY 2019 Q1 Q2 Q3 Q4 FY 2020 Q1 Q2 Q3 Q4 FY 2021 Revenues 4,038,048 1,559,458 1,477,851 1,386,454 2,380,406 6,804,169 2,514,984 2,796,763 2,374,584 2,237,025 9,923,356 2,757,901 2,785,451 2,458,289 2,673,266 10,674,907 Cost of Goods Sold 2,556,130 1,09
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Cash and cash equivalents $402,738 $2,288,426 $1,134,697 $861,650 Accounts receivable, net $796,923 $2,165,107 $1,481,437 $1,878,755 Inventory $1,144,068 $1,734,604 $2,197,244 $1,885,395 Total assets $2,511,481 $7,493,230 $6,351,531 $6