Corporate Overview May 2015 Paul Travers President Vuzix Corp. - - PowerPoint PPT Presentation

Corporate Overview

May 2015 Paul Travers

President Vuzix Corp. NASDAQ: VUZI

Cautionary Note Regarding Forward Looking Statements

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Vuzix Background

• Founded 1997
• Worldwide operations
• Leading supplier of Wearable display technology
• Initial focus US Defense markets
• Cornerstone IP and Patent Portfolio
• 41 patents and 10 patents pending
• Employees
• 38 total with 17 engineering staff
• Award-winning Technology and Design
• Immersive Viewing, Virtual and Augmented Reality, Smart Glasses
• Revolutionary Wearable Display Products for Enterprise and Consumer
• Smart Glasses for Mobility and Video headphones
• Major Shareholders
• Intel Corporation – 24%
• Management – CEO & CFO – 22%

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Wearable Technology – The Revolution is Just Beginning

The market opportunity will be huge:

• ABI Research forecasts the wearable computing device market will grow to 485 million annual device

shipments by 2018

• More than 75 million of these will be wearable display or Smart Glasses, market >$15 billion

Enterprise to adopt First

• Enterprise market for wearables to surpass consumer market, predicts Deloitte’s Consulting
• Good ROIs can be demonstrated in enterprise (productivity of hands free and information access)
• There are millions of field service, warehouse, maintenance and other enterprise users that will benefit

from hands free smart glass solutions

• For Vuzix: Higher gross margins, and less competition
• More open Blue Oceans by not focusing on consumer with

monocular products

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Vuzix M100 Smart Glasses Features – Focused on Enterprise

• Hands-free wearable display, computing & communications platform
• Digital see-through display with 1080p camera
• Earbud & microphone
• Inertial sensors, compass & GPS
• Voice recognition, gesture recognition
• WiFi & Bluetooth
• Safety and prescription glasses mountable
• Based on Android and now Running OS 2.0

with iOS and Android compatibility

• Runs thousands of Android apps
• Vuzix App store launched in Dec. 2014

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Vuzix M100 Smart Glasses Multiple Mounting Options

With support for safety and prescription

Enterprise Applications for Smart Glasses and Augmented Reality

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Real Time, Hands Free, Info on Tap, Image/Video Capture, Scan Code Reading and More…

Vuzix Partners are Some of the Largest Companies in the World

• Intel $25M investment, Lenovo China distribution, SAP for Enterprise

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A Growing List of Industry Leading Customers & Partners

Beginning the Move from Initial Trials to Rolling out Programs

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Examples in field service, warehousing, manufacturing and more….

DHL & RICOH

Vision Picking in Logistics

24,000 parts picked with 25% improvement in efficiency over previous picking methods

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• *1

2&3"-45%

Vuzix M100 Smart Glasses Upgrades Coming

Hardware

• Camera (new faster and better focus)
• Improving audio path circuit
• Adding speaker jack
• Removing SD slot
• 16 gig flash and 32 gig flash now built in
• Optional Thermal Camera (M150)

Software (OS 2.3 Just released)

• Noise cancelling being enabled
• Gesture (Moving to more reliable1D/Select version )
• BT LE enabled
• iOS Support (Including iOS manager)
• Maps (Here) (Optional in Build)
• Higher Level Security
• Honeywell Scanner (Optional)

Vuzix Leading the Industry with the Introduction of IWear 720 Video Headphones

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WINNER OF 4 CES 2015 AWARDS

• Next Gen Video Head Phones
• Think Beats headphone with a 130” hi def. Video experience
• HDMI 3D and streaming WiFi ready
• Designed for PCs, Consoles, Smartphones
• 720P - highest resolution with largest FOV at 57+ degrees (Front row of theater)
• AR & VR Application capable with tracking, audio, microphone, camera
• High precision patent pending optics for gaming to work
• Fully immersive video or VR experience
• Shipping late summer 2015

But, for Mass Market the Smart Glasses Form Factor Needs Improvement

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Carl Zeiss Cinemizer Sony HMZ Epson Moverio Google Glass Kopin Golden-I Oculus Rift

• One of the most frequent questions I get: When will Vuzix finally hire a fashion ID firm?

Well, its not quite that easy

• Conventional refractive and reflective optics simply have limits
• Ultimately a true eyeglass form is needed to gain general consumer acceptance of smart glasses.

First Cell Phone Conventional Optics for Video Viewers & Gaming Conventional Options for Smart Glasses

Vuzix Technology and IP - SOLVES THE PROBLEM

Waveguides (patented) that allow true eyeglass form factors

• Revolutionary way to move light and magnify
• 1.4mm thin so not bulky like conventional optics
• Provides significant improvements in mass, costs and optical

performances. Purpose Built Waveguide Optics for Fashionable Smart Glasses

• New Rochester manufacturing facility operational Fall 2014
• Proprietary Nano-Imprinting for Low Cost Manufacturing
• HD very thin optics with large FOVs
• Easily scalable to mass market levels

Large FOV HD optics (patents pending)

• Revolutionary way magnify HD images to mass screen size

(up to 200” at 10 feet)

• Light, compact, low cost that leverage nano lens arrays

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Conventional Optics Waveguides

Smart Glasses – B Series for Enterprise and Consumer

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• Will deliver on the promise that Google Glass tried to provide
• Vuzix Waveguide based optics
• First binocular fashion-wear smart glasses
• Hands-free operation by voice and gesturing
• Hi resolution displays and 1080p camera
• Designed to support Augmented Reality applications
• True eyeglass styling to “cross the chasm” to the mass market

Technology Evolves: Day in the Life of Cloud Connected You…

http://sidv.co/author/sid/ Images: Siddharth Vanchinathan

Interim Financial Data – 3 Months Ended March 31st

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3 Mths Mar 31, 2015 3 Mths Mar 31, 2014 Total Sales $808 $798 Cost of Sales 558 450 Gross Margin 250 348 Operating Expenses - Cash 1,693 1,222 Operating Loss - Cash

• 1,443
• 874

Stock Based Compensation & Services

• 2,115
• 19

Depreciation and Amortization

• 131
• 100

Interest and Other

• 399
• 70

Gain (Loss) on Derivative Valuation

• 1,003

2,575 Net Income (Loss)

• 5,091

1,512 Earnings (Loss) Per Share

• $0.40

$0.15

Balance Sheet

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Mar 31, 2015 Dec 31, 2014 ASSETS Cash $ 22,884 $ 85 Accounts Receivable 255 383 Inventory & Prepaids 1,397 1,491 Current Assets 24,536 1,959 Net Fixed Asset & Intangibles 1,623 1,741 TOTAL ASSETS 26,160 3,700 Current Liabilities 1,710 3,386 Long-term Debt 1,181 1,179 Derivative Liability – Long-term 175 13,541 Total Liabilities 3,066 18,097 Share Capital 72,346 29,763 (Deficit)

• 49,252
• 44,161

Stockholder’s Equity (Deficit) 23,094

• 14,398

Total Liabilities & Stockholders’ Equity $ 26,160 $ 3,700

Capitalization Table

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Security Average Exercise Price As of May 12, 2015 Common Shares - Outstanding Currently – 15,909,978 Preferred Stock - Series A Convertible (Intel) $5.00 4,962,600 Convertible Debt (excludes accrued interest) $2.25 885,556 Warrants - Outstanding $2.49 590,143 Options - Outstanding $4.41 720,551 Fully Diluted 23,068,828

Recent Corporate and Industry Activity

• Facebook Buys Oculus Rift for $2 billion (March 2014)
• Lenovo signs deal with Vuzix to sell Vuzix-branded M100 Smart

Glasses in China (July 2014)

• Google/Qualcomm invests $542 million for 20% of Magic Leap Inc.

(October 2014)

• SAP launches 3rd enterprise application supporting Vuzix M100

Smart Glasses (October 2014)

• DHL experiences 25% improved efficiency in logistics through use
• f Vuzix M100 Smart Glasses during pilot test (January 2015)
• Google pulls the plug on Glass Explorer Program (January 2015)
• Intel announces Curie chip for wearable market (January 2015)
• Vuzix receives $24.8 million investment from Intel Corporation

(January 2015)

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Vuzix in 2015

• Expecting continued growth with the M100 as an Enterprise solution with pilots

soon to move to wider adoption (10s to 1000s)

• Expanding developer base and continued launch of new applications
• Release HD IWear 720 products for mobile entertainment and gaming
• Move to new larger facility with 5x cleanroom space for volume manufacturing
• Recruiting additional R&D staff, to accelerate new product launches
• Start commercialization of waveguides for enterprise and then consumer

markets

• Implement SOX compliance for NASDAQ
• Targeting strong revenue growth in second half of 2015
• Release/Demonstrate see-through waveguide based binocular Smart Glasses Q4

2015

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Vuzix Investment Highlights

• Received a $24.8 million investment from Intel Corporation (24% owner)
• Acknowledged as one the world leaders in Smart Glasses, established
• ver the last 20 years, and at the front end of market opportunities in the

billions of dollars

• Extensive cornerstone IP and technology base in wearable displays and

smart glasses

• Strong R&D plan and product roadmap to commercialize its

next generation technology for both Vuzix and potential third party OEMs and licensees

• Experienced team with a clear vision of the important

role that wearable displays will play in the future

• Partnerships with leading companies like
• Intel, SAP, Intel, AT&T, and many more
• Waveguide based fashion glasses being released by early 2016

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THANK YOU

Investor Relations: IRTH Communications Andrew Haag 866-976-4784 vuzix@irthcommunications.com Contact: Vuzix Corporation 585-359-5000 http://www.vuzix.com/