eMagin — Investor Presentation (September 2021)
25 slides from eMagin's investor presentation, September 2021
Slide 1: Making AR/VR A Reality
Making AR/VR A Reality NYSE American: EMAN Investor Presentation – September 2021 1
Slide 2: Disclaimer
Disclaimer Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward-looking statements within the meaning of the federal securities laws. Our actual results may differ materially from those expressed in any fo
Slide 3: Vision: Enable the visualization of digital information
Vision: Enable the visualization of digital information and imagery with OLED technology ©2021 eMagin Corporation 3
Slide 4: A Pioneering Technology Leader with a Broad IP Portfolio
A Pioneering Technology Leader with a Broad IP Portfolio A technology leader with proprietary and patented direct patterning technology (dPdTM) for 1 ultrahigh brightness in color, and the sole U.S. manufacturer of OLED microdisplays 2 Uniquely positioned to capitalize on growing addressable markets
Slide 5: eMagin at a Glance
eMagin at a Glance Headquarters: Hopewell Junction, NY Manufacturing: U.S. Domiciled Employees: 100+ The technology leader in OLED Displays Revenue: $29.4M in 2020 • 85% from Product Sales,15% Contracts • 56% U.S., 46% International • 30 countries served Market Cap: $182.7M* Ticker/Exchange: EMAN /
Slide 6: Leveraging Our Military Experience to Seize New Opportunities
Leveraging Our Military Experience to Seize New Opportunities Establish partnerships for high-volume manufacturing Develop commercial and consumer electronics customer relationships for AR/VR opportunities Grow commercial, medical and industrial presence Expand military and aviation market share Dee
Slide 7: H1 2021: Improvements in Backlog and Liquidity
H1 2021: Improvements in Backlog and Liquidity. Financial Trends • H1 2021 Product revenues totaled $11.8 million, comparable to H1 2020 Product revenues of $11.9 million • H1 2021 Contract revenues of $1.2 million declined from $2.5 million in H1 2020 reflecting timing of contract deliverables. • D
Slide 8: Serving a Critical Need in U.S. Defense Capabilities
Serving a Critical Need in U.S. Defense Capabilities • Recognized by the U.S. Department of Defense (DoD) as the only domestic manufacturer of OLED microdisplays and designated as a cornerstone of the U.S. manufacturing base • Received $39.1 million in DoD funding for procurement and installation of
Slide 9: Our OLED Technology Advantage: Lowest Power, Highest Brightness
Our OLED Technology Advantage: Lowest Power, Highest Brightness • Brightest OLED commercially available – monogreen with peak luminance over 40,000 cd/m2 • Full-color 7,500 cd/m2 demonstrated, full color 10,000 cd/m2 targeted this year • Very high contrast – greater than 1,000,000:1 • Lower power co
Slide 10: A History of Technical Leadership Through Fundamental Innovations in Microdisplays
A History of Technical Leadership Through Fundamental Innovations in Microdisplays • Developed and shipped first full-color Active Matrix OLED in 2001 • Introduced sequentially higher resolution displays: • VGA 640x480 SXGA120 1280x1024 • SVGA+ 852x600 WUXGA 1920x1200 • DSVGA 800x600 2Kx2K 2048x2048
Slide 11: Direct Patterning: The Best Display Solution for AR/VR Applications
Direct Patterning: The Best Display Solution for AR/VR Applications • dPd achieved 7,500 cd/m2 brightness on a full-color WUXGA • Full-color 2k x 2k display demonstrated by using dPd • 4k x 4k full-color dPd microdisplay demonstrated ©2021 eMagin Corporation 11
Slide 12: OLED Provides a Superior AR/VR Experience
OLED Provides a Superior AR/VR Experience Magnification Highlights eMagin’s Superior Fill Factor OLED Cell Phone Display ~600 ppi eMagin OLED Microdisplay >2,500 ppi ©2021 eMagin Corporation 12
Slide 13: The Future of AR/VR Powered by dPd
The Future of AR/VR Powered by dPd™ Low Brightness AR* High Brightness AR* • Conventional OLED microdisplays use white OLED with color filters • Color filters absorb ~80% of the useful light; limited brightness and inefficient • Only eMagin has Direct Patterned microdisplay technology for direct emi
Slide 14: Deep Application Expertise and Broad IP Portfolio Create Significant Barriers to Entry
Deep Application Expertise and Broad IP Portfolio Create Significant Barriers to Entry Patents Know-how • 55 patents issued and 32 pending • Includes silicon backplane, OLED architecture, process and • Includes silicon backplane, OLED packaging architecture, process and packaging • Back-plane design
Slide 15: Well-established Military and Aviation Business
Well-established Military and Aviation Business Profile Customers • Predominately sole-source supplier • Differentiated performance and leader in brightness • Visible in bright sunlight • High contrast for detail • First mover in AR/VR for domestic and foreign military applications • Global market l
Slide 16: Commercial and Medical Markets Represent New Growth Opportunities
Commercial and Medical Markets Represent New Growth Opportunities and End-market Diversification Profile • Products provide high reliability in stressful environments • Visualize digital information and imagery • Successful in supplying to medical imaging devices, veterinary ultrasound viewers, ther
Slide 17: Display Market Share and Revenues
Display Market Share and Revenues Source: DSCC 2021 OLED Microdisplays Expected to Dominate ©2021 eMagin Corporation 17
Slide 18: Well Positioned to Capitalize on Large Commercial and Consumer Opportunities
Well Positioned to Capitalize on Large Commercial and Consumer Opportunities Profile ✓ Augmented reality for • Equipment repair • Factory automation • Service technicians ✓ Virtual reality for • Vehicle design • Training and simulation • Consumer gaming and entertainment ✓ eMagin is the only company
Slide 19: Our Manufacturing Footprint: We are Made in the USA
Our Manufacturing Footprint: We are “Made in the USA” Hopewell Junction, NY (Headquarters) • Houses own equipment for OLED Class 10 Clean Room Operations microdisplay fabrication, assembly operations, R&D and product development functions • eMagin is the only US-based manufacturer of OLED microdispl
Slide 20: Experienced Management Team of Recognized Industry Experts
Experienced Management Team of Recognized Industry Experts • More than 20 years experience in OLED technologyand manufacturing Andrew Sculley • Led Kodak OLED Systems CEO • MS Physics Cornell, MBA Carnegie-Mellon • Pioneering inventor of disruptive OLED microdisplay technology at eMagin and Kodak Dr
Slide 21: A Pioneering Technology Leader with a Broad IP Portfolio
A Pioneering Technology Leader with a Broad IP Portfolio A technology leader with proprietary and patented direct patterning technology (dPdTM) for 1 ultrahigh brightness in color, and the sole U.S. manufacturer of OLED microdisplays 2 Uniquely positioned to capitalize on growing addressable markets
Slide 22: Appendices
Appendices ©2021 eMagin Corporation 22
Slide 23: Consolidated Statement of Operations
Consolidated Statement of Operations (in thousands, except share data) Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenues: Product $ 5,742 $ 6,260 $ 11,847 $ 11,894 Contract 537 1,440 1,205 2,537 Total revenues, net 6,279 7,700 13,052 14,431 Cost of revenues: Product
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet (in thousands, except share data) June 30, De ce mbe r 31, 2021 2020 ASSETS C urre nt asse ts: Cash and cash equivalents $ 10,568 $ 8,315 Restricted cash 1,491 2,111 Accounts receivable, net 3,117 5,314 Account receivable-due from government awards 77 1,013 Unbilled accoun
Slide 25: Adjusted EBITDA
Adjusted EBITDA $ in thousands Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (278) $ (2,831) $ (7,656) $ (4,200) Non-cash compensation 37 44 50 87 Change in fair value of common stock warrant (2,642) 1,481 4,566 1,501 liability Depreciation and intangibles amor