Slide 1: Corporate Presentation October 2024
NASDAQ: POCI Corporate Presentation October 2024
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 is a VERTICALLY INTEGRATED OPTICS COMPANY primarily focused on leveraging its proprietary MICRO-OPTICS AND IMAGING TECHNOLOGIES to the HEALTHCARE and DEFENSE/AEROSPACE industries by providing services ranging from new product concept through mas
Slide 4: Company Overview
Company Overview ►Precision Optics (Nasdaq: POCI) has been a leading developer and manufacturer of advanced optical instruments for more than 40 years ►Today’s proprietary technologies: ►Micro Optics ►3D Endoscopes ►Digital Imaging ►Business model driving rapid growth ►Work closely with key medical
Slide 5: 40 Year Old Growth Story
40 Year Old Growth Story 1980’s 1990’s 2000’s 2010’s Today ► Founded in 1982 ► Went public in 1990 to ► Entry into telecom industry ► Joe Forkey becomes CEO in ► Products moving into support night vision work developing DWDM filters 2011 to drive new strategy commercial level ► Focused on medical an
Slide 6: Revenue Ramp
Revenue Ramp FY End June $25,000,000 $21,044,467 $20,000,000 $19,104,350 $15,678,248 $15,000,000 $14,315,600 $10,780,917 $10,674,907 $9,923,337 $10,306,766 $10,000,000 $6,804,169 $7,904,427 $8,533,032 $5,000,000 $4,038,048 $3,154,547 $5,490,626 $8,323,433 $6,728,867 $1,778,890 $2,754,516 $5,371,482
Slide 7: Leader in Micro, 3D Optics and Digital Imaging
LEADER IN MICRO, 3D OPTICS AND DIGITAL IMAGING
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: Digital Imaging Electronics and Systems
Digital 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 dev
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: Key Markets: Medical Device
Key Markets: Medical Device ►MicroPrecision Optics ►Smaller imaging systems enabling next generation minimally invasive surgery ►3D Endoscopes ►Robotic Surgery ►Digital Imaging ►Full medical device systems ►Single use endoscopes 12
Slide 13: Key Markets: Aerospace/Defense
Key Markets: Aerospace/Defense ►SWaP (Size Weight and Power) ►Areas of Focus ►Satellite communications ►UAV/Drones ►Directed energy weapons 13
Slide 14: Digital Imaging Systems
Digital Imaging Systems Optics Image Sensor Illumination Video Processing Packaging System Performance Performance Luminance Quality Sterilization Product Cost Size Size Distribution Flexibility Biocomp. Quality Fabrication Interconnect Power & Thermal Latency Size Compliance Assembly Mounting Packa
Slide 15: Vertically Integrated Design to Manufacture
Vertically Integrated Design to Manufacture 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 Engin
Slide 16: Key Acquisitions Enhanced Capabilities
Key Acquisitions Enhanced Capabilities October 2021 July 2019 16
Slide 17: Expanding Product Development Pipeline
Expanding Product Development Pipeline Feasibility Prototype Prototype Verification/ Product Production Industry Subsegment Customer Study Design Fabrication Validation Multiple Mature “Legacy” Products Medical Device Multiple Multiple Cardiovascular Endoscope Medical Device Cardiac CardioFocus Otos
Slide 18: Go Forward Strategy
Go Forward Strategy ►Continue to ramp recently transitioned production programs ►Advance pipeline projects to commercialization ►Expand pipeline with new development programs ►Maintain competitive advantages in micro-optics, 3D imaging and digital imaging ►Disciplined investment strategy in sales an
Slide 19: Financials
FINANCIALS
Slide 20: Revenue
Revenue Annual Quarterly FY ends June FY ends June $25 $6.0 $21.0 $5.0 $5.0 $4.7 $20 $19.1 $15.7 $4.0 $15 $ Million $ Million $3.0 $10.7 $9.9 $10 $2.0 $6.8 $5 $3.9 $4.0 $3.2 $1.0 $0 $0.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q4 23 Q4 24 20
Slide 21: Gross Margins
Gross Margins Annual Quarterly FY ends June FY ends June 40% 45% 36.7% 36.8% 35% 34.0% 40% 38.5% 32.2% 31.2% 31.4% 30.3% 35% 30% 24.5% 30% 25% 24.1% 25% 20% 21.7% 20% 15% 15% 10% 10% 5% 5% 0% 0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q4 23 Q4 24 21
Slide 22: Adjusted EBITDA
Adjusted EBITDA Annual Quarterly FY ends June FY ends June $1,000,000 $0 $491,219 $500,000 ($200,000) $35,835 $0 ($400,000) ($43,421) ($24,718) ($409,791) ($242,293) ($500,000) ($600,000) ($763,419) ($1,000,000) ($800,000) ($1,500,000) ($1,000,000) ($1,552,167) ($1,090,163) ($2,000,000) ($1,200,000)
Slide 23: Income Statement Highlights
Income Statement Highlights FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Q1 Q2 Q3 Q4 FY 2023 Q1 Q2 Q3 Q4 FY 2024 Revenues 4,038,048 6,804,169 9,923,356 10,674,907 15,678,248 5,085,301 5,886,961 5,048,065 5,024,140 21,044,467 4,321,255 4,824,290 5,242,579 4,716,226 19,104,350 Cost of Goods Sold 2,556,130
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 Cash and cash equivalents $1,134,697 $861,650 $605,749 $2,925,852 $405,278 Accounts receivable, net $1,481,437 $1,878,755 $2,663,872 $3,907,407 $3,545,491 Inventory $2,197,244 $1,885,395 $3,079,938 $2,776,216 $2,868,100 Total