Slide 1: LightPath Technologies: A Global Leader in Optics & Infrared Solutions
LightPath Technologies A Global Leader in Optics & Infrared Solutions NASDAQ: LPTH | February 2025 Investor Day Presentation
Slide 2: Safe Harbor Statement
A Growing Market Opportunity LightPath Today G5 Infrared Safe Harbor Statement This presentation contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or
Slide 3: Today's Agenda
A Growing Market Opportunity LightPath Today G5 Infrared Today’s Agenda Speaker List Sam Rubin Jason Libert President & General Manager, Chief Executive Officer Visimid • 11:00am – Orlando Facility Tour Todd Croteau Albert Miranda Sr. Director, • 12:00pm – Lunch with Management Chief Financial Offic
Slide 4: The Global IR Imaging Market Landscape: A Path to Ubiquity
The Global IR Imaging Market Landscape: A Path to Ubiquity
Slide 5: Infrared (Thermal) Imaging Explained
A Growing Market Opportunity LightPath Today G5 Infrared Infrared (Thermal) Imaging Explained Near Infrared - Nigh Vision Long Wave Nearby, see Short Wave – Adverse Mid Wave – Long Range, through conditions. Fog, clouds or High Temperatures. Traditionally Smoke, etc. Defense | 5
Slide 6: Uncooled Revolution and Evolution
A Growing Market Opportunity LightPath Today G5 Infrared Covid-19 spurred growth for Uncooled Yole Development, March 2022 Fever detection Revolution and Evolution FLIR Lepton effect – start Covid-19 drove drastic of democratization of cost reductions, thermal imaging creating new growth by making t
Slide 7: The Infrared Market is Changing
A Growing Market Opportunity LightPath Today G5 Infrared The Infrared Market is Changing Global Thermal Camera Market (in $ millions) IR cameras growing in ubiquity in a fragmented market driven by ongoing geopolitical change Increasing adoption in: AUTOMOTIVE LIDAR to SMART CITIES and benefit publi
Slide 8: Uncooled Imaging (Microbolometers)
A Growing Market Opportunity LightPath Today G5 Infrared Uncooled Imaging (Microbolometers) Microbolometers Segment 2023 2029 CAGR Industrial $407 $529 4.5% Defense $177 $341 11.5% Consumer $187 $274 6.6% Auto $63 $91 6.3% Total $834 $1,235 6.8% *Does not include Cooled Infrared Imaging Defense grow
Slide 9: Building the Next Global Leader in IR Imaging
A Growing Market Opportunity LightPath Today G5 Infrared Building the Next Global Leader in IR Imaging Building the foundation to own key technologies, becoming a vertically integrated solutions provider and the #1 player in sophisticated cameras The Opportunity The Solution The LPTH Strategy • Phot
Slide 10: Changes in the Infrared Imaging World
A Growing Market Opportunity LightPath Today G5 Infrared Changes in the Infrared Imaging World New applications, driven by lower cost and new use cases, such as: • Fugitive gas imaging • Smart City Applications (Mid & Long wave technology) • Automotive Changes in supply chain: • Germanium • Supply f
Slide 11: Differentiators are Key for a New Entrant
A Growing Market Opportunity LightPath Today G5 Infrared Differentiators are Key for a New Entrant Example of some differentiators (ever evolving list) Materials • Lighter, smaller systems • Multispectral functionality Imaging technologies • Shutterless • Multi sensor video engines • Integration of
Slide 12: Germanium Supply Chain Risk
A Growing Market Opportunity LightPath Today G5 Infrared Germanium Supply Chain Risk Industry dependence on Germanium represents a clear “Achilles Heel” to the U.S. defense industry | 12
Slide 13: Proprietary BlackDiamond Glass: A Significant Competitive Advantage
A Growing Market Opportunity LightPath Today G5 Infrared Proprietary BlackDiamond ™ Glass: A Significant Competitive Advantage Domestic Germanium Alternative, Exclusively Licensed from the U.S. Naval Research Laboratory A made-in-America cost effective Germanium exports from China are banned - alter
Slide 14: Advantages of New Materials
A Growing Market Opportunity LightPath Today G5 Infrared Advantages of New Materials 3X Infrared Zoom Lens, redesigned with the New Materials The new materials offer unique properties. Significant reduction in number of Multispectral material lenses needed, weight, size and cost. Enable reduction in
Slide 15: NRL Licensed Materials
A Growing Market Opportunity LightPath Today G5 Infrared NRL Licensed Materials Material Status BDNL-103 BDNL-16 BDNL-10 BDNL-5 BDNL-9 BDNK-7 BDNL-6 BDNL-8 BDNL-4 Process Transition to Production Qualification Development Production | 15
Slide 16: Visimid Acquisition: Taking Customization to the Next Level
A Growing Market Opportunity LightPath Today G5 Infrared Visimid Acquisition: Taking Customization to the Next Level Acquisition of Visimid adds capability to build custom sensor & software systems for LightPath Cameras. This new capability unlocks the production of highly customized variations on M
Slide 17: Customized uncooled imaging modules
A Growing Market Opportunity LightPath Today G5 Infrared Customized uncooled imaging modules Proprietary Video Engine The heart of our customized imaging core is our Phoenix video engine. Based on Xilinx FPGAs, the video engine includes all non-uniformity correction functions, Automatic Gain Control
Slide 18: LightPath Before G5
LightPath Before G5: A Successful Multi-Year Transformation into an IR Imaging Platform Company
Slide 19: Engineering a New LightPath
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared Engineering a New LightPath LightPath is transitioning to a solutions-oriented approach for high value customers geared towards driving higher revenue & gross margins Legacy LightPath LightPath 2.0 LightPath 3.0 Components Supp
Slide 20: LightPath's Evolving Transformation
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared Lightpath’s Evolving Transformation • New strategy • Insourced services • Rightsizing the company, global footprint, • Acquisition and integration Board of Directors • Manufacturing back in the US • Sunsetting unrelated product
Slide 21: Significant Manufacturing Capacity
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared Significant Manufacturing Capacity Orlando, Florida Plano, Texas Principal Production Facility Prototyping & R&D Hub • 2023 facility expansion to • Design center for all uncooled 55,000 sq. ft. and 11,700 sq. ft camera technolo
Slide 22: 3 Pillars of Growth
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared 3 Pillars of Growth Products and solutions applicable to growing and diverse applications Optical & Camera Government: New Commercial Assemblies Defense & Aerospace Applications • Multispectral imaging and optical • Unique mate
Slide 23: LightPath Uncooled Product Lineup
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared LightPath Uncooled Product Lineup LightPath’s current camera solutions are based on UNCOOLED cameras, addressing more affordable price point solutions ($1K - $30K), and mostly operating in the Long Wave Infrared (LWIR) region o
Slide 24: LightPath Key Programs
LightPath Key Programs
Slide 25: Short Range Air Defense System
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared Short Range Air Defense System PR OF OGRA RE Customer Name Lockheed Martin Missiles and Fire Control CO M Target Application U.S. Army Stinger Missile RD Lightpath product I.R. Imager RFP: March ‘23 RFQ/RFP timeline RFQ: August
Slide 26: Other Existing Programs
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared Other Existing Programs Fixed Wing US Army Rotary EOTS Programs NGLS NGHTS Program In Space Communication | 26
Slide 27: Key Applications and Industries
Key Applications and Industries
Slide 28: Optical Gas Imaging – Oil & Gas
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared Optical Gas Imaging – Oil & Gas | 28
Slide 29: Optical Gas Imaging – Utility
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared Optical Gas Imaging – Utility •Monitoring sulfur hexafluoride (SF6) is crucial for several reasons, particularly due to its environmental and operational impacts. •LightPath Gas Scan is filtered to visualize SF6 •Preventing Gas
Slide 30: Furnace Inspection Coal Fired Boiler
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared Furnace Inspection Coal Fired Boiler Upper Furnace (approx. 1300º C avg) Super Heat Entrance (approx. 1500º C) Bottom Ash Pit (100-500º C) | 30
Slide 31: Automotive & Smart Cities
A Growing Market Opportunity LightPath LightPath Today Today G5 Infrared Automotive & Smart Cities “Night Vision” in existing Cadillac CT6 • LightPath addressing recent NHTSA directive • What does ‘Smart City’ mean? (FMVSS #127): Automatic Emergency Braking • Types of Monitoring • Compliance is requ
Slide 32: Acquisition of G5: Incremental Technology, Products & Markets
Acquisition of G5: Incremental Technology, Products & Markets with Meaningful Synergies
Slide 33: Continued Growth in Levels of Vertical Integration
Continued Growth in Levels of Vertical Integration. 3 Missile L6 EO-Systems Machine Observation Airborne examples LIDAR Guidance Vision Systems Platforms Systems L5 EO-Sub- Spectroscopy Range Imagers, systems, ex. Instrumentation Payloads Periscopes Finders sights ed fr 5 In G ar L4 Cameras Thermopi
Slide 34: Investment Highlights: LightPath 3.0
A Growing Market Opportunity LightPath Today G5 Infrared Investment Highlights LightPath 3.0 • Turn-around is complete • $1m in annualized savings • Poised for growth • Building a global leader in • $16m of capex deployed optics • Complete reposition of the business + • Vertically integrated systems
Slide 35: G5 Quick Facts
A Growing Market Opportunity LightPath Today G5 Infrared G5 Quick Facts Where are we Located? Established: 2011 Location: Employees: Boston: 42 mi 40-50 Manchester: 26 mi 12 Executive Dr. G5 Hudson, N.H. Quick Facts: Business Verticals: Products: 1. Defense Infrared cameras Sensor suites 2. Commerci
Slide 36: Strategic Fit: The Next Step for the Transformation
A Growing Market Opportunity LightPath Today G5 Infrared Strategic Fit G5 Infrared Addition LightPath 3.0 2023 & Beyond Imaging Systems Creator The Next Step ASP: $50K-$500K for the Transformation LightPath 2.0 New 2021-2022 Solutions Provider LightPath ASP: $1K-$30K Legacy LightPath 1995-2020 ASP:
Slide 37: Transaction Summary
A Growing Market Opportunity LightPath Today G5 Infrared Transaction Summary Structure Equity transaction with 24 month earn-out Consideration $6.75M in LPTH Shares, $20.25M Cash 12 Months & 24 Months after close, gated by EBITDA threshold. Earn-Out 12 Mos.: Up to $14M if hit $27M sales; 24 Mos.: Up
Slide 38: Strategic Fit
A Growing Market Opportunity LightPath Today G5 Infrared Strategic Fit Accretive 60% increase in topline, profitable, fast growing. Cooled infrared camera technology compliments LightPath’s Technology uncooled camera technology. Long range detection cameras. Fast growing market segment Product addre
Slide 39: Building an Industry Leader
A Growing Market Opportunity LightPath Today G5 Infrared Building an Industry Leader LightPath 3.0 Uncooled IR Camera Solutions Cooled IR Camera Solutions • Building a global leader in optics • Vertically integrated systems manufacturer and assembly Programs of Record Programs of Record • Expanded m
Slide 40: Long Range Imaging Systems Portfolio
A Growing Market Opportunity LightPath Today G5 Infrared Long Range Imaging Systems Portfolio Video on Youtube | 40
Slide 41: ATCOM Image Stabilization Technology
A Growing Market Opportunity LightPath Today G5 Infrared ATCOM Image Stabilization Technology Video on Youtube | 41
Slide 42: G5's Business Today
A Growing Market Opportunity LightPath Today G5 Infrared G5’s Business Today G5 currently focuses on providing cameras exclusively to support the following applications: Long Range Detection of Naval Surveillance Person & Vehicles Border Protection Ship Protection, Long Range Long Range Surveillance
Slide 43: Driving Growth
A Growing Market Opportunity LightPath Today G5 Infrared Driving Growth Gas Sensing (Methane) Critical Infrastructure Data Center Security C-UAS TAM >$1B (2024) Security TAM >$0.5B (2022) TAM >$1B (2022) TAM >$1B (2022) Multispectral Repair Assembly Product EdgeIR Imaging Services Services Synergies
Slide 44: Enhanced Financial Profile
A Growing Market Opportunity LightPath Today G5 Infrared Enhanced Financial Profile Revenue Growth* LightPath 3.0 Largest $4M Incremental 20% Combined YoY >$55M Product Group EBITDA* Growth Potential Product Mix Growth * Expected in 12 months following closing | 44
Slide 45: Identified Synergy Opportunities
A Growing Market Opportunity LightPath Today G5 Infrared Identified Synergy Opportunities Sales and Marketing Operational and R&D Technology Synergies Synergies Synergies • Cross selling • In-sourcing of • G5’s ATCOM • Unified Software optical components • LightPath’s AI Platform • Leverage LPTH • M
Slide 46: Optical Synergies
A Growing Market Opportunity LightPath Today G5 Infrared Optical Synergies Multiple Element Optical Train Available for "Insourcing" | 46
Slide 47: Key Customers
A Growing Market Opportunity LightPath Today G5 Infrared Key Customers | 47
Slide 48: Consolidated Tower & Surveillance Equipment (CTSE)
A Growing Market Opportunity LightPath Today G5 Infrared Consolidated Tower & Surveillance Equipment (CTSE) PR OF OGRA Customer Name Elbit of N. America RE CO M Target Application Consolidated Tower & Surveillance Equipment (CTSE) RD Lightpath/G5 product Cooled Camera System Expected: LRIP: ‘25/’26
Slide 49: Shipboard Panoramic Electro-Optic Infrared (SPEIR)
A Growing Market Opportunity LightPath Today G5 Infrared Shipboard Panoramic Electro- Optic Infrared (SPEIR) PR Customer Name L3 Harris OF OGRA RE Shipboard Panoramic Electro- CO M Target Application Optic/Infrared (SPEIR) RD Lightpath/G5 product Cooled Camera System RFQ/RFP timeline Won Expected: L
Slide 50: Other Existing Programs
A Growing Market Opportunity LightPath Today G5 Infrared Other Existing Programs i-Stalker, Aircraft MOUT Training Carrier Protection Centers Prison Security FAA RVSS Systems Towers | 50
Slide 51: Financial Overview: Accretive M&A Paired with Strong Near-Term Catalysts
Financial Overview: Accretive M&A Paired with Strong Near-Term Catalysts Expected to Drive Notable Growth
Slide 52: G5 Financing Overview & Comparison
A Growing Market Opportunity LightPath Today G5 Infrared G5 Financing Overview & Comparison • In completing the acquisition, LPTH brought in a new investment partner to finance the deal • The lead investor, North Run, is a fundamental investor who focuses on long term investments in small-cap stocks
Slide 53: Deal Structure
A Growing Market Opportunity LightPath Today G5 Infrared Deal Structure Summary Items of Note • $29M Net “Cash In” after Promissory Note “Old School” Convertible Preferred Stock conversion • $25.5 million • $24.5 million new money, $1.0 million rolled from existing note • $6.7M Cash “walk away” afte
Slide 54: Consolidated 5 Year Revenue Opportunity Analysis
A Growing Market Opportunity LightPath Today G5 Infrared Consolidated 5 Year Revenue Opportunity Analysis • Base Business Case was built ground up from known customers and known high probability opportunities • The Worst-case scenario assumes growth similar to the market • The High Probability case
Slide 55: G5 Consolidated Financial Statements
A Growing Market Opportunity LightPath Today G5 Infrared G5 Consolidated Financial Statements G5 CY 2024 Unaudited Strategic Targets • Revenue Growth Sales $15.1 M • Target > 20% • Earn Out First Step Goal is $21M Total COGS $9.4 M • COGS • No synergies in the assumptions Gross Profit (Loss) $5.7 M
Slide 56: How to Measure Success in 2025
A Growing Market Opportunity LightPath Today G5 Infrared How to Measure Success in 2025 • Accelerating revenue growth with cross-selling of G5 products • Higher ASPs as we transition to a solutions company • Measurable progress with Lockheed Martin program • Additional defense contract wins • Adj. E
Slide 57: Question & Answer Session
Question & Answer Session Investor Relations Lucas A. Zimmerman LPTH@mzgroup.us 949-259-4987 Engage with us Twitter LinkedIn Web @lighpathtech lightpath-technologies www.lightpath.com Global Leader in Optical & Infrared Solutions