Slide 1: Corporate Presentation December 2020
OTCQB: PEYE Corporate Presentation December 2020
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 ► 3 products move 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 $12,000,000 $9,923,337 $10,000,000 $8,000,000 $6,804,169 $6,000,000 $8,533,032 $4,038,048 $4,000,000 $5,490,626 $3,154,547 $2,754,516 $1,778,890 $2,000,000 $1,375,658 $1,283,532 $1,313,543 $1,390,305 $0 2017 2018 2019 2020 Engineering Production 6
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: 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 11: 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 12: 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 13: Expanding Product Pipeline (December 2020)
Expanding Product Pipeline (December 2020) Feasibility Prototype Prototype Product Pilot Production Industry Subsegment Customer Study Design Fabrication Multiple Mature “Legacy” Medical Device Multiple Multiple Products Cardiovascular Endoscope Medical Device Cardiac CardioFocus Otoscopy Device Med
Slide 14: Rapid Commercialized Product Growth
Rapid Commercialized Product Growth ► 3 products that have reached commercialization level production since middle of 2018 ► Delivered and sold through initial stocking order ► Follow on orders ongoing as customers products gain traction ► Early indications are that medical device products are perfo
Slide 15: Expanding Markets for Micro Optics & 3D
Expanding Markets for Micro Optics & 3D 15
Slide 16: 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 17: Financials
FINANCIALS
Slide 18: Revenue
Revenue Annual Quarterly FY ends June FY ends June $12 $3.0 $2.8 $9.9 $2.5 $10 $2.5 $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 Q1 2020 Q1 2021 18
Slide 19: Gross Margins
Gross Margins Annual Quarterly FY ends June FY ends June 40% 45% 36.7% 34.0% 40% 39% 35% 31.2% 35% 35% 30% 24.5% 30% 25% 24.1% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% 2016 2017 2018 2019 2020 Q1 2020 Q1 2021 19
Slide 20: Adjusted EBITDA
Adjusted EBITDA Annual Quarterly FY ends June FY ends June $100,000 $120,000 $35,835 $107,832 $0 ($43,421) $100,000 ($100,000) ($200,000) $80,000 ($300,000) $58,544 ($400,000) $60,000 ($500,000) $40,000 ($600,000) ($700,000) $20,000 ($800,000) ($763,419) ($900,000) $0 2018 2019 2020 Q1 2020 Q1 2021
Slide 21: Income Statement
Income Statement Q1 Q2 Q3 Q4 FY 2018 Q1 Q2 Q3 Q4 FY 2019 Q1 Q2 Q3 Q4 FY 2020 Q1 Revenues 1,028,746 812,773 735,597 1,460,932 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 Stock option expense 8,669 - - - 8,669 - - - 11,233 11,
Slide 22: Balance Sheet Highlights
Balance Sheet Highlights 6/30/2018 6/30/2019 6/30/2020 9/30/2020 Cash and cash equivalents $402,738 $2,288,426 $1,134,697 $900,510 Accounts receivable, net $796,923 $2,165,107 $1,481,437 $1,585,001 Inventory $1,144,068 $1,734,604 $2,197,244 $2,138,390 Total assets $2,511,481 $7,493,230 $6,351,531 $6