UniPixel Investor Presentation November XX, 2015 NASDAQ: UNXL

UniPixel
Jeff Hawthorne – CEO
Christine Russell – CFO
Investor Presentation
May 2016
UniPixel Confidential & Proprietary
Disclaimer
All statements in this presentation that are not based on historical fact are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, including the statement regarding growth of our business. Such statements contain words such as
"will," and "expect," or the negative thereof or comparable terminology. These statements are based on management's
current expectations. These forward-looking statements rely on a number of assumptions concerning future events and
are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could
cause actual results to materially differ from such statements. These risks, uncertainties, and other factors include, but
are not limited to, the ability to recognize revenues, the ability to extend product offerings into new areas or products,
the ability to compete in our currents markets, the ability to commercialize licensed technology, unexpected occurrences
that deter the “bring to market” plan for products, trends and fluctuations in the industry, changes in demand and
purchasing volume of customers, our ability to attract and retain qualified personnel, our ability to raise additional
capital, the ability to move product sales to production levels, the success of product sales in new markets or of recently
produced product offerings, the ability to enforce our intellectual property rights and those set forth under Item 1A
"Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014 and other current and periodic
reports filed or furnished from time to time with the SEC. All forward-looking statements in this press release are made
as of the date hereof, based on information available to UniPixel as of the date hereof, and UniPixel assumes no
obligation to update any forward-looking statement.
UniPixel Confidential & Proprietary
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UniPixel Facts
 UniPixel (Nasdaq: UNXL)
 35.8 million common shares outstanding
 2.6 million options / restricted stock
 11.1 million warrants
 60 issued patents (34 US) + 151 pending patents
(71 US.)
 Headquarters in Santa Clara, California (Silicon
Valley).
 Manufacturing facility in Colorado Springs,
Colorado.
 Sales offices in Taiwan, Houston, and Santa Clara.
 Research & Development in Houston.
 77 employees, including 5 PhDs.
UniPixel Confidential & Proprietary
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UNXL: $5 Billion Addressable Market
ProCap and On-Cell Touch
Market Segments
 Mobile phone market (< 6”) is the largest touch segment:
$3.6 Billion in 2015.
 Tablet market (> 7”) is the 2nd largest touch segment: $1.1
Billion in 2015.
$5B
 Notebook market (> 11”) estimated at $136 Million in
2015.
$4B
$3B
 Automotive market at 29 Million units in 2013 forecasted
to grow to 60 Million units in 2018 or 15.8% CAGR.*
 Metal Mesh is quickly taking share as the preferred high
quality sensor approach.
 Mobile phone using commodity sensors characterized by
low ASPs and GMs; metal mesh will emerge as
larger/curved displays scale.
* Source: IHS/DisplaySearch
$2B
$1B
$0B
UniPixel Confidential & Proprietary
2015F
2016F
2017F
Mobile Phone
Tablet PC
Notebook PC
Others
Source: IHS/DisplaySearch
2018F
2019F
Automobile
4
XTouch Strategic Market Segments
High
Tablets
Segment
Attractiveness
Auto
Notebook PC /
PC Display
High
Priority
Future
Target
Markets
Smartphones
Wearable
Industrial
Appliances
Med
Med
High
Fit with XTouch
UniPixel Confidential & Proprietary
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UniPixel Technology
 Emerging Leader in Touch Screen Sensor and Glass
Replacement Technology
 Used in tablets, laptops, 2-in-1’s, printers, automotive
displays.
 XTouch: The Next Generation in Touch Screen Technology
 Copper wire mesh: flexible vs. rigid ITO (indium tin oxide);
higher touch sensitivity.
 Increasing global acceptance with device manufacturers /
touchscreen integrators.
 Superior stylus performance; by finger, active or passive
stylus.
 Diamond Guard: Hard Coat Glass Replacement Technology
 Replaces heavy glass screens.
 Enables computing device manufactures to create thinner,
lighter and faster devices.
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XTouch: Leading-Edge

XTouch is the fastest, most responsive touch screen
technology on the market today.

XTouch metal mesh + Diamond Guard approach offers
ease of use with finger, active or passive stylus.

XTouch outperforms current indium tin-oxide (ITO) and
other metal mesh technologies:




Superior Sensor Performance.
Flexible for enabling touch on curved surfaces.
Narrower borders and thinner cover glass
Competitive on Price NOW; even more so in
coming quarters with manufacturing cost
reductions and as yields increase.

Market forecasts suggest metal mesh and non-ITO will
grow from 5.5% of TAM growing to > 30% by 2019.*

Rapidly expanding design wins and pipeline of RFQs
demonstrate market acceptance by major Tablet and
Laptop OEMs
* Source: IHS/Touch Display Research
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UniPixel Design Wins
 5 Design Wins Announced Since November 2015
 Early success includes purchase orders, and follow-on design wins, from
leading PC manufacturers such as HP, Toshiba, and Dell for various
touchscreen device programs, including:
 11.6-inch Tablet;
 8-inch Android Tablet for a Major U.S. wireless provider;
 10.1-inch Tablet;
 15.6-inch retail POS (point-of-sale) device;
 12-inch Convertible (2-in-1) Tablet;
 13.3-inch Notebook;
 2 printer programs.
 UNXL is collaborating with a leading automotive ODM (original design
manufacturer”) for future automobile touchscreen panels.
 Timing from “design win” to revenue generation can be approximately 6
to 12 months.
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Diamond Guard:
Enabling Development of Thinner and Lighter Devices
2.7 lbs.
0.76”
3.1 lbs.
0.61”
1.9 lbs.
0.7”
Dell Latitude 12” 7000
2.0 lbs.
0.5”
HP Spectre Pro 13.3”
1.7 lbs.
0.4”
•
•
Glass cover lens must be replaced to
achieve next level of weight reduction!
DiamondTouch can reduce ~ ½ pound from
a 15.6” touch panel by eliminating glass
cover lens
Thinner
Lenovo LaVie 13.3”
MacBook 12”
Surface Pro 4 12”
Lighter
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Touch Module Configuration
XTouch Sensor and Integrated Cover Lens Solution
Fully Compatible with Industry Leading Controllers
Cover Lens
OCA
Diamond Guard coated XTouch Sensor
FPC / Controller
Air Gap or Direct Bond
LCD
UniPixel Confidential & Proprietary
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XTouch Advantages
Flexible sensor material enables
innovative product designs
Copper-based mesh using
our patented design
~90% light transmission*
Thin borders: 1.5mm
or less
-For brighter display and thinner
stack height
Low Sheet Resistance (<10 Ω/sq.)
-For ease of Use by Finger or Stylus
-For reduced weight
Narrow Bond Area compared
to GFF
-For low cost and high reliability
(* With anti-reflective coating or optical bonding)
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Future - Ready Patented Industrial Design
Future: Zero Bezel Tablet Concept
Sensor wrapped around edge allows virtual
buttons on the side of the device
 Disappearing borders for lower weight
 Cutting-edge industrial design for cool design
 Virtual buttons for higher reliability than mechanical buttons
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UniPixel Transforming Product Design
Thin Cover Lens Support Using Diamond Guard
GFF
XTouch
XTouch
XTouch
DiamondTouch
Glass
Glass Cover Lens
Diamond Guard
Bottom Hardcoat
Plastic Cover Lens
Diamond Guard
Bottom Hardcoat
Diamond Guard Top and
Bottom Hardcoat
70µm
550µm
350µm
625µm
850-1000µm
Patented Sensor Design and Diamond Guard
Reduces Cover Lens Cost And Weight.
Enables production of thinner, lighter and faster devices.
UniPixel Confidential & Proprietary
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Customers and Targets
NotePC, Tablet & AIO
Automotive
UniPixel Confidential & Proprietary
Handset
14
ITO-Alternative Technology Players
Metal Mesh Must Offer all Features
Advanced Features
Term / Description
Companies
Low Resistance
Better noise immunity and lower power
consumption
Double Sided
Avoids XY layer alignment Moiré Moiré
problems
< 5 μm Width
Resolves mesh visability problem
Copper Wiring
More durable as it avoids the silver metal
migration problem
Patented Metal Mesh Design
Reduces effective resistivity to enable thin cover lens, and
better touch and stylus performance
XTouch does not have the yellow tint of ITO, improving clarity of the display
XTouch soft copper enables curved designs compared with ITO non-flexible, brittle oxide
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XTouch Manufacturing Flow
Basecoat
Electrical
Test
Expose
Dev/Plate
BiMetal
Roll
Inspection
Liner /
Singulation
Sheet
Inspection
UniPixel Confidential & Proprietary
Overcoat
Package /
Ship
16
Patent Map
Issued +
Pending
UNXL
Diamond
Guard
Material
Manufacturing
Sensor
Design
22
12
26
14
Atmel License
CIT License
65
7
Sensor
Feature
Sensor
Module
Device
33
5
9
18
Total issued (pending)
UNXL – 16 (58)
Atmel – 37 (75)
CIT – 7 (18)
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Growth Catalysts
 Market’s relentless pursuit for more responsive, thinner and lighter mobile devices
 XTouch metal mesh offers the best overall user experience and is the high end performance choice by
OEMs.
 Patented sensor design allows 0.4 mm or thinner glass cover lens which is difficult for competition.
 DiamondTouch technology for laptop computers has the thinnest stack, lowest cost, highest performance
with high barrier of entry for competition.
 Future-ready
 Patented edgeless industrial design.
 Ready for flexible displays.
 Introduction of AAPL pencil and success of MSFT Surface enabling Stylus-based apps
 UniPixel is ahead of the curve. XTouch has the best active stylus (AAPL and MSFT) and also enables use of
a significantly lower-cost passive stylus ~ $2 (as opposed to $99 or $60).
 High Integration
 Integrated FPC reduces cost and increases product reliability, simplifies supply chain and removes margin
stacking by providing sensor directly to display makers.
 Expanding Capacitive Touch Market
 Laptops, Tablets, Automotive, Peripherals, Industrial, IOT devices.
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Financial Highlights
2015
2014
Revenue
$3.8 million
$0
Expenses
$17 million
$20 million

Cash @ December 31, 2015: $12 million.

Acquired more than $36 million of manufacturing equipment for $0.5 million Note in April 2015.

Retired $15.5 million debt securities on February 16, 2016.

No outstanding debt securities on Balance Sheet.
©2015 Unipixel Confidential
UniPixel Confidential & Proprietary
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Cap Table & Use of Proceeds
December 31, 2015
(000)
Weighted Average
Exercise Price
Common Stock
32,171
Outstanding Options /
Restricted Stock
2,618
$6.54
Outstanding Warrants
11,070
$1.59
Total Capitalization
45,859
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Target Model – Non-GAAP
Non-GAAP
Q2 2016*
Q4 2016*
LT Model*
100%
100%
100%
Gross Margin
-6%
34%
46%
Direct Margin
25%
45%
57%
R&D
32%
13%
13%
SG&A
32%
14%
20%
Adjusted EBITDA
-70%
7%
13%
Revenue
Note: * Targeted
UniPixel Confidential & Proprietary
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UniPixel Takeaways
•
UniPixel operates in large addressable markets.
•
Leading metal mesh touch sensor technology.
•
Diamond Guard technology enabling glass replacement.
•
Shipping product to industry leading customers.
•
Growing pipeline of RFQs.
•
No long-term debt securities.
•
Experienced management team.
©2015 Unipixel Confidential
UniPixel Confidential & Proprietary
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UniPixel – Thank You!
Investor Presentation
May 2016
UniPixel Confidential & Proprietary
Appendix
UniPixel Confidential & Proprietary
Management
Jeff Hawthorne
President and CEO
33+ years of senior management and advanced technology product development experience.
Sr. VP and GM – Veeco MOCVD Business
President and CEO – Photon Dynamics (acq’d by Orbotech)
Christine Russell
CFO
CFO of Vendavo (acq’d by Francisco Partners); EAG; Virage Logic (acq’d by Synopsys), OuterBay
Technologies (acq’d by HP), Ceva (Nasdaq: CEVA), Persistence Software, Cygnus Solutions
Director and Audit Committee Chair of QuickLogic Corporation (Nasdaq: QUIK)
Chairman of Silicon Valley Directors Exchange (SVDX)
Served as Director and Audit Committee Chair of Peak International
Jalil Shaikh
COO
VP / GM of Atmel
CEO Ranch Energy Systems; Validity Sensors (acq’d by Synaptics); and Zeevo (acq’d by
Broadcom)
Senior management roles @ Broadcom (Nasdaq: BRCM); Silicon Image; Trident Microsystems
Brett Gaines
VP – Marketing
Director of Business Development of Touch Materials at Atmel
VP Strategic development, Silicon Image
Manager of Business Development, Sun Microsystems
Mark McCloud
VP – Sales
25+ years at HP in Emerging Technology, supply chain strategic procurement, and process
development engineering
UniPixel Confidential & Proprietary
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2015 Income Statement
Three Months Ended
($000)
Mar 31
7
Jun 30
1,362
Sept 30
1,498
Dec 31
890
Dec 31
3,757
Cost of revenues
7
3,420
4,701
4,207
12,335
Gross margin
-
(2,058)
(3,203)
(3,317)
(8,578)
Selling, general and administrative expenses
2,966
3,678
1,724
1,786
10,154
Research and development
2,723
1,476
1,491
1,121
6,811
(5,688)
(7,213)
(6,418)
(6,224)
(25,543)
4
170
(3,602)
(4,350)
(7,778)
(5,684)
(7,043)
(10,020)
(10,574)
(33,321)
-
(8,702)
-
5,000
(3,702)
(5,684)
(15,745)
(10,020)
(5,574)
(37,023)
Revenue
Operating income
Other income (expense), net
Net income from continuing operations
Discontinued operations
Net income
UniPixel Confidential & Proprietary
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2015 Adjusted EBITDA
($000)
Net loss
Three Months Ended
March 31
June 30
Full Year
September 30
December 31
December 31
(5,684)
(15,745)
(10,020)
(5,574)
(37,023)
Discontinued operations
-
8,701
-
(5,000)
3,701
Debt issuance cost amortization
-
376
451
538
1,365
Gain on change in warrant liability
-
(3,900)
(1,092)
(525)
(5,517)
Accretion of discount on convertible notes
-
3,122
4,049
3,488
10,659
232
193
100
521
Other income/expense
(4)
Depreciation & Amortization
1,566
2,561
1,285
1,276
6,688
Stock compensation expense
541
408
380
216
1,545
Restricted stock issuance
387
344
330
367
1,428
-
90
4
8
102
(3,194)
(3,811)
(4,420)
(5,106)
(16,531)
Severance
Non-GAAP Adjusted EBITDA
UniPixel Confidential & Proprietary
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Balance Sheet – December 2015
($000)
Cash
11,716
Accounts payable
1,150
Account receivable, net
334
Accrued liabilities
1,156
Inventory
769
Notes Payable
2,773
Total current liabilities
5,079
Royalty liability
1,175
Long term debt/liabilities
1,250
Prepaid licenses
4,900
Prepaid expenses
819
Other current assets
526
Total
19,064
Property and Equipment
1,842
Prepaid licenses
5,642
Total
26,548
Total
10,937
Total shareholders’ equity
19,084
Total
26,548
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