Comsovereign Holding Corp. · OTC:COMS
Comsovereign — Drone Aviation Holding — Investor Presentation (November 2016)
38 slides from Comsovereign's investor presentation, Nov 18, 2016
Slide 1: Drone Aviation Holding Corp. (OTCQX: DRNE)
DRONE AVIATION HOLDING CORP. (OTCQX: DRNE)
Slide 2: Forward-Looking Statement
F ORWARD - L OOKING S TATEMENT Certain information and statements in this presentation constitute forward - looking statements . Words such as forecast, project, target, intend , expect, should, would, could, may, will, anticipates, believes, plans and other similar expressions and all statements wh
Slide 3: Table of Contents
T ABLE OF C ONTENTS II. Company Overview III. Products & Solutions IV. Customers & Opportunities I. Corporate Objective V. Organization & Management VI. Finance & Strategy VII. Summary PAGE 3 Proprietary
Slide 4: Corporate Introduction
▪ Drone Aviation Corp . (“Drone Aviation”, “DRNE”, or the “Company”) develops and manufactures cost - effective, compact and rapidly deployable aerial platforms, including lighter than air aerostats and electric powered drones designed to provide government and commercial customers with enhanced sur
Slide 5: Unique Attributes
UNIQUE ATTRIBUTES ▪ Pure - Play Drone Market Investment Opportunity ― Recently completed recapitalization creates simplified, clean capital structure with no long term debt ― Investor - led management team focused on accelerating transition from development phase into commercialization • Expanding p
Slide 6: Table of Contents
T ABLE OF C ONTENTS II. Company Overview III. Products & Solutions IV. Customers & Opportunities I. Corporate Objective V. Organization & Management VI. Finance & Strategy VII. Summary PAGE 6 Proprietary
Slide 7: Company History
C OMPANY H ISTORY ▪ Completed a public transaction in 2014 through reverse merger with FL - based Lighter Than Air Systems, a leading developer of specialized, tethered aerial monitoring and communications platforms ― Seasoned executive management team ― Lead investor and Chairman of the Strategic A
Slide 8: WASP, WATT and BOLT
WASP WATT BOLT Description ▪ Mobile / rapidly - configurable tactical aerostat ▪ ISR and wireless data / communications range extension supporting U . S . Army ground forces ▪ Supports electro - optical and infrared (EO / IR) imaging tactical surveillance sensors ▪ Long endurance, rapidly deployed,
Slide 9: Recent Developments
RECENT DEVELOPMENTS ▪ Commercial Momentum ― Drone Aviation’s WATT tethered drone in compliance with new FAA regulations (Part 107 ) for commercial operations effective on August 29 , 2016 ― Drone Aviation expands operations with Mid Atlantic Aviation Partnership (MAAP), one of six national Unmanned
Slide 10: Table of Contents
T ABLE OF C ONTENTS II. Company Overview III. Products & Solutions IV. Customers & Opportunities I. Corporate Objective V. Organization & Management VI. Finance & Strategy VII. Summary PAGE 10 Proprietary
Slide 11: Unmanned Technology Addressing Global Threats
U NMANNED T ECHNOLOGY A DDRESSING G LOBAL T HREATS ▪ Geopolitical instability - Far from Subsiding ― Instability and risks abound in the Middle East, Africa and Ukraine / Russia • Terrorist organizations, such as ISIS and al - Qaeda, continue to pose a threat to the U . S . and its allies ― China’s
Slide 12: Unmanned Technology Addressing Global Threats
U NMANNED T ECHNOLOGY A DDRESSING G LOBAL T HREATS ▪ How is unmanned technology addressing global threats? ― Defense / military • Persistent Intelligence, Surveillance and Reconnaissance (ISR) • Extending communications : At the tactical edge, on - the - move • Force / installation protection and se
Slide 13: Why Tethered Technology?
W HY T ETHERED T ECHNOLOGY ? Tether – a ‘smart leash’ that provides reliable, uninterruptible / un - hackable control, power and communications ▪ “Armored” / Kevlar © tether is a key differentiator and enabling technology ― Allows for long duration, reliable and safe unmanned flight (drone can’t fly
Slide 14: Data and Control
D ATA AND C ONTROL PAGE 14 Proprietary Architecture ▪ All communications over tether ▪ Web - browser control of vehicle and payload ▪ Completely Internet Protocol - based ▪ Simplified user interface ▪ Compatible with laptops, tablets, phones ▪ Designed for long - duration flights, hours to days ▪ Wi
Slide 15: Technology with Benefits at All Altitudes
WASP BOLT WATT T ECHNOLOGY WITH B ENEFITS AT A LL A LTITUDES PAGE 15 Proprietary
Slide 16: WASP System Description
WASP S YSTEM D ESCRIPTION Technical Description ▪ Envelope Diameter : 15 - 22 feet ▪ Lifting Gas : Helium (non - flammable) ▪ Payload Lift Capability : 20 - 130 lbs . ▪ Flight Altitude : Up to 1 , 500 feet AGL ▪ Operational Cycle : Persistent (subject to weather) ▪ Rapid deflation device (RDD) for e
Slide 17: U.S. Government Publications
U.S. G OVERNMENT P UBLICATIONS “One scenario included Soldiers at a Forward Operating Base using the mobile, tactical - sized Winch Aerostat Small Platform, or WASP , and Full Motion Video, or FMV, to conduct video surveillance and provide reports to their teammates on patrol.” “We were trying to ge
Slide 18: Target Markets – WASP
T ARGET M ARKETS – WASP 1) Based on management estimates TETHERED AEROSTAT MARKET OPPORTUNITY OVER NEXT 5 YEARS E ND M ARKETS Military Foreign Domestic S AMPLE C USTOMERS − U.S. Army − U.S. Navy − National Security − Commercial − Civil, DoT, DoC − Civil, DoT, DoC − Homeland Security APPLICATIONS − F
Slide 19: WASP Case Study
WASP C ASE S TUDY The Product: WASP is a lighter than air platform utilizing non - volatile Helium . Lift capabilities range from 25 lbs . to 75 lbs . and operating altitudes from 500 ft . to 1 , 500 ft . All versions are persistent in operation (typically 4 - 7 days continuous flight) . Payloads in
Slide 20: BOLT & WATT System Descriptions
BOLT & WATT S YSTEM D ESCRIPTIONS Why BOLT & WATT? ▪ Fly more safely and reliably than free - flight unmanned aircraft ▪ Carry heavier payloads for longer durations ▪ Transmit power, data and telemetry from the ground via the Kevlar© armored tether ▪ Launch from ground - based power for extended fli
Slide 21: Tethered Drone Technology Comparison
T ETHERED D RONE T ECHNOLOGY C OMPARISON Attribute BOLT & WATT Tethered Drones Typical Consumer Drone 1 Continuous Operations (Flight Duration >8 Hrs.) Broadcast Quality / HD Zoom Stabilized Imager Securely Transmits HD Video in Real - Time Un - hackable / Not s usceptible to Interference Redundant
Slide 22: Target Markets – BOLT & WATT
T ARGET M ARKETS – BOLT & WATT !) Based on management estimates 2)) Source: Bureau of Justice Statistics (2013) 3)Source: National Fire Protection Association (2013) TETHERED DRONE MARKET OPPORTUNITY OVER NEXT 5 YEARS E ND M ARKETS Surveillance Broadcast First Responders Data Analytics S AMPLE C UST
Slide 23: BOLT Case Study
BOLT C ASE S TUDY 23 The Product: BOLT is a tethered and optionally tethered coaxial helicopter with a 6 . 5 ft . wingspan . Bolt is designed as a persistent platform that requires a single operator and minimal logistics . The vehicle is capable of flying at 800 ft . AGL with a 15 lb . payload quiet
Slide 24: WATT Case Study
WATT C ASE S TUDY 24 The Product: WATT is a multirotor tethered platform . WATT is designed as a highly reliable, easy to use system with the capability to remain on station for many hours while lifting heavier payloads than free flying systems . With very low operating costs and minimal logistics,
Slide 25: Table of Contents
T ABLE OF C ONTENTS II. Company Overview III. Products & Solutions IV. Customers & Opportunities I. Corporate Objective V. Organization & Management VI. Finance & Strategy VII. Summary PAGE 25 Proprietary
Slide 26: Deployed by Mission Focused Customers
▪ Drone Aviation’s product suite is currently being tested and deployed by a number of mission - focused customers for ISR, security and communications functions ▪ The Company’s proprietary technology provides defense and civilian customers with significant size, weight, power and cost (SWaP - C) sa
Slide 27: FAA Regulations Summary – New Market Opportunity
FAA R EGULATIONS S UMMARY – N EW M ARKET O PP . New FAA drone regulations expands use of commercial drones and the addressable market ▪ Part 107 operational rules favor tethered technology as opposed to other unmanned aerial systems ― Small Unmanned Aircraft Systems (sUAS) must remain within the Vis
Slide 28: FAA Regulations Beneficial for Tethered Drones
FAA R EGULATIONS B ENEFICIAL FOR T ETHERED D RONES ▪ Ability to fly in urban environments ▪ Safely fly with non - participants outside of drone zone PAGE 28 Proprietary
Slide 29: Table of Contents
T ABLE OF C ONTENTS II. Company Overview III. Products & Solutions IV. Customers & Opportunities I. Corporate Objective V. Organization & Management VI. Finance & Strategy VII. Summary PAGE 29 Proprietary
Slide 30: Organization
O RGANIZATION PAGE 30 Proprietary Board of Directors LT. General Michael Flynn (Vice Chairman) Major General Wayne P. Jackson (Chair, Comp Committee) Michael Haas (Chair, Audit Committee) Kevin Hess Strategic Advisory Board Dr . Phil Frost (Chairman) Jay Nussbaum Dr . Steven Rubin LT . General Micha
Slide 31: Management Overview
M ANAGEMENT O VERVIEW ▪ Jay H . Nussbaum, Chairman and CEO Over 40 years in sales and management . Formerly EVP of Oracle Service Industries where he grew business from under $ 60 million to more than $ 1 . 5 billion . Formerly President of the Integrated Systems Operations at Xerox and founded and
Slide 32: IP Portfolio
IP P ORTFOLIO Technologies that can power tomorrow’s drones and autonomous vehicles with intelligent vision - based navigation without relying on GPS ▪ Exclusive commercial license to Georgia Tech Technology ― DARPA / ARMY / NASA funded programs ― GUST software (Georgia Tech UAV Simulation Tool) ― N
Slide 33: Mature Infrastructure and Processes
M ATURE I NFRASTRUCTURE AND P ROCESSES Identify Product Need Requirements Development System Design Program Management Development and Integration Qualification Testing Transition to Production Deliver to Customer Receive Feedback Drone Aviation is building an infrastructure that can handle future
Slide 34: Table of Contents
T ABLE OF C ONTENTS II. Company Overview III. Products & Solutions IV. Customers & Opportunities I. Corporate Objective V. Organization & Management VI. Finance & Strategy VII. Summary PAGE 34 Proprietary
Slide 35: Corporate & Finance Information
▪ “C” Corporation ▪ Stock Exchange : OTCQX ▪ Fiscal Year End : December 31 st ▪ Legal Firm : Holland & Knight, LLP ▪ Auditor : MaloneBailey, LLP ▪ Accounting System : QuickBooks Enterprise hosted ▪ Payroll System : Paychex C ORPORATE & F INANCE I NFORMATION 35 PAGE 35 Proprietary
Slide 36: Table of Contents
T ABLE OF C ONTENTS II. Company Overview III. Products & Solutions IV. Customers & Opportunities I. Corporate Objective V. Organization & Management VI. Finance Info VII. Summary PAGE 36 Proprietary
Slide 37: Summary
Pure - Play Drone Market Investment Opportunity Reputation for Flexibility and Responsiveness to Customer Needs Initial Penetration in well - funded DoD customers Skilled Engineers with Unparalleled Domain Expertise Significant Expansion Opportunity into Commercial Drone Operations Unique IP Portfol
Slide 38: Contact: Dan Erdberg, President
Contact: Dan Erdberg, President DRONE AVIATION HOLDING CORP. Tel: (786) 681 - 0800 derdberg@droneaviationcorp.com WWW.DRONEAVIATIONCORP.COM OTCQX: DRNE PAGE 38 Proprietary
Drone Aviation Holding — Investor Presentation (November 2016) on 6ix