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Copyright 2015 Carlson Wireless Technologies Inc. 1
Jim Carlson, CEOMark O’Connor, SVPjcarlson@CarlsonWireless.commoconnor@CarlsonWireless.com
Connecting the Next 4 Billion
Copyright 2015 Carlson Wireless Technologies Inc. 2
4 Billion People Have No Internet Access
Why? Solutions for many rural areas and developing countries aren't economically feasible.
Copyright 2015 Carlson Wireless Technologies Inc. 3
Problem: 8M U.S. Homes Have No Broadband Lack of Connectivity Due to Costs of Expanding the Existing
Infrastructure, Terrain, and Low Density
4Copyright 2015 Carlson Wireless Technologies Inc.
Solution: Carlson’s TV White Space Technology
Graphics illustrating mountain
TVWS spectrum is low-band and clean spectrum at no cost. Signal penetrates walls/trees/foliage and bends over hills to reach NLOS customers.
25 Mbps broadband signal with low latency for up to 10 km to 14 km radius.
Much lower CapEx than deploying other technologies (fiber, DSL, or WiMAX) in most less populated areas.
up to 10km
Base Station
5Copyright 2015 Carlson Wireless Technologies Inc.
Carlson’s Low-Cost TVWS Solution
Backhaul5.xGHz
Client unit pricing <$175 using a Base Band ASIC and our low cost RF
TVWS802.11afNLOS
CPE TVWS
External OMC: Authentication and management
Social media providers are subsidizing hardware solutions that can breakthrough the price performance barrier. Carlson has that solution coming to market end of 1Q2016
4 Channel Base Station
200 Mbps24 MHz2 Sectors
(470-790 MHz)
1 to 10 km
220 Mbps 40 MHz
indoor
outdoor
25/3 burst and 10/1 sustained service for 200 users
Carlson has also designed a TVWS & LTE HetNet Solution
Backhaul can be wired or 5GHz microwave
Copyright 2015 Carlson Wireless Technologies Inc. 6
Carlson’s Competitive Advantages Unique acquired knowledge of TVWS antenna and transmitter circuitry
meeting the strict regulatory requirements and yet has twice the power and range of competitors.
Patentable proprietary antenna designs and technology with excellent competitive “blocking” capabilities.
One of the few companies with FCC approval to sell in U.S. market. Regulatory hurdles are extremely rigorous, resource intensive, and time consuming.
Extensive relationships with top customers such as Tier 1 carriers and domestic and global service providers, as well as top supply chain vendors. No competitor has these relationships.
Carlson dominates the industry in technology/performance & price. More deployments than all competitors combined, with 55 demonstrations/trials in 22 countries.
Copyright 2015 Carlson Wireless Technologies Inc. 7
Competitive Analysis
ProductBase
AggregateSpeed
Data BurstRate
Data Commit
LevelIndustry Standard
Users /Base
StationRange
Retail CPE Price
Carlson Gen 3* 96 Mbps 25/5 10/1 802.11af 200 10 km
14 km$175$245
CarlsonGen 2 16 Mbps 10/2 4/1 Proprietary 12 14 km $400
6harmonics 12 Mbps 10/2 N/A Proprietary 20 6 km $400
Adaptrum 12 Mbps 10/2 N/A Proprietary 6 10 km $800
KTS 3 Mbps 3/1 2/1 Proprietary 10 8 km $900
Carlson is first with the long-awaited IEEE 802.11af industry standard.
* Gen 3 product release planned for 2Q 2016
Copyright 2015 Carlson Wireless Technologies Inc. 8
Carlson’s Model and Go-to-Market Strategy
Design & Testing
Manufacturing
Market Strategy
Final Assembly
Gross Margins
Sales through extensive customer base, direct web, and telephone contacts. Well developed global dealers and vertical market. Customers: leading two way resellers, Telco carriers, search engine giants, oil & gas, public safety, industrial, municipal, and more…
Carlson and subcontractors develop architecture and component boards.Carlson is sample testing on PCB’s and accessories.
Carlson is now moving to outsourcing manufacturing from ODM’s in Taiwan/China to accommodate growth.
Carlson performs final assembly of base stations and then performs 48 hour burn-in system testing in-house at Carlson offices.
40 to 70% gross margins on products.
Copyright 2015 Carlson Wireless Technologies Inc. 9
World Class Team
Jim Carlson, CEO and founder Carlson Wireless, 30 years in Radio dev with the Optaphone used in over 75 countries, exit to Zhone in 1998, Founder, $60M in total revenue
Peter Stanforth Co-founder & CTO, Spectrum Bridge Ex-founder & CTO, Mesh Networks; ex-VP, Motorola20 patents
Steve Papa CEO, Parallel Wireless Ex-CEO Endeca ($1B+ exit to Oracle), ex-SVP Oracle, Angel Investor
Mark O’Connor SVP and BDevex DC Legal Counsel for Google, AOL, EarthLink, Omnipoint, and MCI Worldcom. Angel Investor
Michael Dorin Sr. Software Engineer, developed GR303, SS7 and Wimax protocol stacks and test hardware for equipment manufacturers.
Sebastien Amiot, RF System and IC architect, 8 IEEE papers ,11 patents. System definition for LTE RF front-end IC for mob terminals
Advisors
109/1/14 Private & Confidential Not For Disclosure
Timeline - Accomplishments
2012 2013
Carlson connects with FCC certified database
Providers Spectrum Bridge and iconectiv
Carlson receives
FCC Certification
4Q13
Carlson VHF Prototype
Cognitive RadioDeployed in U.S. Trials
2014
GoogleSelects Carlson for South Africa Wireless Project
1500 units2nd Carlson
RuralConnect Radio Run
3Q13
2015
FCC finalizes $9Bn subsidies
for rural broadband build out
Carlson demo/trial of
Gen 3 Solution, first IEEE 802.11af
Carlson files patents on
dual polarity flat panel antenna design
2016
Carlson uses 10W EIRP for
40km links in Africa
Carlson launches
Gen2 demo trials in 25 countries
Carlson reaches
50,000 unit sales
1Q 2017
2017
11Copyright 2015 Carlson Wireless Technologies Inc.
4 Yr. Projections – 2016 to 2019(All figures in thousands)
Calendar Year 2016* 2017* 2018* 2019*
Total Revenue 8,234 34,819 84,478 306,339
Cost of Goods Sold 4,671 19,046 49,758 186,113
Gross Margin 3,563 15,773 34,720 120,226
R&D 1,306 3,303 8,500 12,400
Sales & Marketing 442 1,100 4,700 9,600
General & Admin 340 1,040 2,270 6,400
Total Expenses 2,092 5,443 15,470 28,400
EBITDA 1,4712 10,330 19,250 91,826
* Estimated forecasts above are based on forward-looking assumptions
12Copyright 2015 Carlson Wireless Technologies Inc.
Capital Raise / Return Amount of bridge raise is $800,000 ($450,000 already raised) To meet massive market demand, we have priced this round
aggressively to close quickly and reward early investors Return on investment ~20x with exit in 2019 The vehicle is a convertible note with warrants:
• Note Conversion Price: Price set at Series A financing of $5M+• Warrants: One warrant priced at $.01 per share for every two shares obtained in
conversion of note, exercisable for 5 years• Price Cap on Conversion: 16.9M valuation (~$3.00 per share)• Interest of Note: Simple interest at the rate of 4% per annum • Collateral: Unsecured• Maturity date of Note: 24 months • Follow-on and Pro-Rata rights • Automatic Conversion at Series A financing of $5M+
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