|Investor Presentation Nov 2018
This document contains forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. Forward-looking statements may address the following subjects among others: the status of filter designs under development, the prospects for licensing filter designs upon completion of development, plans for other filter designs not currently in development, potential customers for our designs, the timing and amount of future royalty streams, the expected duration of our capital resources, our hiring plans, the impact of our designs on the mobile device market, and our business strategy. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: our limited operating history; our ability to complete designs that meet customer specifications; the ability of our customers (or their manufacturers) to fabricate our designs in commercial quantities; the ability of our customers to sell products incorporating our designs to OEMs; our dependence on a small number of customers; the ability of our designs to significantly lower costs as compared to other designs and solutions; the risk that the intense competition and rapid technological change in our industry renders our designs less useful or obsolete; our ability to find, recruit and retain the highly skilled personnel required for our design process in sufficient numbers to support our growth; our ability to manage growth; and general market, economic and business conditions. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q) filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this document, and we expressly disclaim any obligation or undertaking to update forward-looking statements.
We may refer to information regarding potential markets for products and other industry data. We believe that all such information has been obtained from reliable sources that are customarily relied upon by companies in our industry. However, we have not independently verified any such information.
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SAFE HARBOR STATEMENT
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The RF Front- End (RFFE) plays a critical role in ensuring voice and data calls are routed correctly
Resonant is transforming the way RFFEs are Designed and Delivered
How does your mobile device know how to connect your voice and data calls to you?
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WHO WE ARE
Fundamental Value: Tools, Team, Technology
Business Model: Licensing-Per Unit Royalty
Market Size / Growth: $ 9B / 21% CAGR
Customers: 10 customers
Market Validation: 60+ devices under contract
ISN® Foundry Program: Transforms the RFFE supply chain• Foundry partners: 4• Packaging partners: 3• Fabless customers: 50%
Founded: May 2012
IPO: May 2014
Employees: 60+ employees
IP: 150+ pending & issued patents
Cash: $26.4M as of September 30, 2018
Corporate OverviewCompelling Story
Goleta, Calif.Burlingame, Calif.
Austin, Texas
Neuchâtel, Switzerland
Seoul, Korea(liaison office)
Shanghai, China(sales partners)
Sources: Yole Developpement, Navian
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MARKET OPPORTUNITY
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FILTERS: THE MAIN DRIVER OF GROWTH OF THE RF FRONT END
Filter market is the fastest growing market in RFFE• 21% CAGR• >$27B in 2025
Next generation Smartphone projected to include $29.31 RF content
Sources: Yole Developpement, Navian, Barclays, Management Estimates
$22.31Advanced
4G
$16.25Premium
4G
$7.25Performance
4G
20252007 Increasing Value of RF Content | Higher RF Content Driving TAM Growth
5-8 15-20 30-35 50-70 80-90 90-100 >100Increasing number of RF filters per phone *Management estimates
2-4 TBD
$29.31Future
4G
>$38.005G
Sub 6GHz MIMO
5G
mmWave5G
2018
$ 4B
$ 9B
$ 40B
$ 28B
RFFE MARKET
$ 9B
$ 16B
$3.25Value 2G/3G
$0.80Legacy 2G/3G
FILTER MARKET
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Ten customers with 60+ complex filters, duplexers and quadplexersunder contracted development supporting customer sockets
EXPANDING THE MOBILE FILTER TARGET MARKET
HiSiliconIntelMediaTekSamsungSpreadtrumQualcomm
ChilisinMicrogateWalsin
RFIC Company Module ManufacturerFabless ModelAirohaCanaanTekEtraHiSilicon/HuaweiHuntersunLansus
Innotek/LGMicrogateRDASmarterMicroSemco/SamsungVanChip
RF Passive Manufacturer
Reference Design
VerizonAT&TT-MobileSprintDocomoSK TelecomSoftbankChina MobileKDDI
Advance Dev./IP Licensing
Handset OEMAppleSamsungCoolPad (Yuloong)HTCHuaweiLenovoLGMotorolaNokiaOppoSony MobileTCL (Alcatel)VivoXiaomiZTE
Carriers
Filter ManufacturerVertically Integrated Manufacturers Avago
KyoceraMurataQorvo
RF360San’anSAWNICSSkyworks
Taiyo-YudenWisol
AvagoMurataSkyworks
Module ManufacturerQorvoWisol
TAISAWTowerTSMCWavetek/UMCWINSemi
EnicomTAISAWTong Hsing
Non-Captive FoundryFoundry & Packaging Enicom
GlobalNDKNJRCSAWNICSShoulder
Non-Captive Packaging
50%
50%
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ISN® FOUNDRY PROGRAM
Current Foundry Partners
Current Packaging / Backend Partners
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TOTAL ADDRESSABLE MARKET
• 5G/IoT• Medical• Automotive• Industrial• Military
5G
Source: Mobile Experts LLC, Navian and Company Estimates
• Low value Mobile
• High Value Mobile Filters17Bu - $4.7B
31Bu - $3.4B
~10Bu
$10B
$20B
$30B
RESO
NA
NT
AVA
ILA
BLE
MA
RKET
FO
R FI
LTER
S
2017T I M E
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COMPLEX RF FILTERS - KEY TO REALIZING 5G WIRELESS DATA-RATES
FILTERS
Band 2
Band 10
Band 3
Carrier aggregation
Carrier aggregation
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XBAR™ - Resonant’s new cutting-edge bulk acoustic wave (BAW) resonator technologyideally suited for 5G applications
RESONANT INTRODUCES XBAR™
Sources: Yole Developpement
Resonant’s roadmap is focused on the inclusion of higher frequency BAW and FBAR solutions to ensure participation in the demand created by 5G.
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INFINITE SYNTHESIZED NETWORKS (ISN®)
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TOOLS - ISN®: NEXT GENERATION DESIGN PLATFORM
DESIGN INTEGRATION
DESIGN OPTIMIZATION SIMULATION
SYNTHESIS
CURRENT FILTER DESIGN UTILIZED BY MOST MANUFACTURERS
RESONANTFundamental | Rigorous | Scalable | Defendable
Image DesignAcoustic Wave
Ladder
Modern FilterTheory
Coupling of ModesModel | COM
Empirical Optimization& Simulation
Aggregated Physical PropertiesVelocity of Surface Waves
Reflectivity of Surface Waves
Acoustic WaveNetwork Synthesis
RF Circuit Models Optimization
Fundamental Physical Models Simulation
RF CircuitsInductance | Voltage
RF Circuit Integration
Fundamental Physical Properties
Density | DimensionsFab Integration1900s 1950s 2000s
Value• Faster development• Lower cost
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ISN®: FUNDAMENTAL AND COMPLETE FILTER DESIGN SUITE
Filter Circuit Design Optimization
Specifications
ProcessParameters
105 Patents
Chip LayoutPhysical Design
8 Patents
Package /Module LayoutPhysical Design
Filter Chip Design OptimizationComputer Aided EngineeringSynthesisSimulationOptimizationFinite Element Model
24 Patents GVR Acquisition
Integrated Filter Design OptimizationComputer Aided EngineeringSynthesisSimulationOptimizationFinite Element Model
15 Patents
MaskGeneration
MeasuredData
Yield PredictionCompliance Matrix
Temperature Behavior
Note: Patents issued and pending
Data Analysis & VerificationAdd External ComponentsCompare
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ISN®: EXPANDING INTO NEW TECHNOLOGIES
ROADMAP OF FULLY INTEGRATED SAAS-BASED INFINITE SYNTHESIZED NETWORK
SAW
FEMSAW / PMTx™Software Enhancements
Power Durability / IsolationIP Blocks
BAW
Layers IISoftware Enhancements
XBAR™IP Blocks
2012 2017 2018 2019 2020 2021
TC-SAW Multi-Layer
Layers / PMTx™Software Enhancements
ODSR (Optimized Design Space Resonator)IP Blocks
TC-SAW Bonded Wafer
FEMSAW / LayersSoftware Enhancements
Plate Mode Engineered DeviceIP Blocks
2016
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ISN®: EXPANDING INTO NEW TECHNOLOGIES
FBAR Film Bulk Acoustic ResonatorsAcoustic wave propagates in a vertical direction
SAW Surface Acoustic WaveAcoustic wave propagates in a lateral direction
Surface Acoustic Wave
Metal lines
Interdigital Transducer
Piezoelectric substrate (LiTaO3 , …)
Electrical Port
TC-SAW Temperature-Compensated SAWAcoustic wave propagates in a lateral direction
Si3N4 PassivationSiO2 Temperature Compensation
ElectrodesPiezoelectric Substrate
BAW Bulk Acoustic WaveAcoustic wave propagates in a vertical direction
Bottom electrode
Thin-film piezolayer
Top electrode
Stress field of acoustic wave
Si -substrate
Bottom cavity
Support layer
Best performance requires precise process control and improved design
4G 4G
More expensive Most expensive
Bottom electrode
Thin-film piezolayer
Top electrode Stress field of
acoustic wave
SubstrateAcoustic reflector
2µm thick @ 2 GHz
COST
PROCESS STEPS
PERFORMANCE
APPLICATIONS
Performance less than FBAR Currently, best performanceImproves temperature stability
4G & 5G 4G & 5G
Simple, low cost Relatively low cost process
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ISN®: EXPANDING INTO NEW TECHNOLOGIES
SAW Surface Acoustic WaveAcoustic wave propagates in a lateral direction
Surface Acoustic Wave
Metal lines
Interdigital Transducer
Piezoelectric substrate (LiTaO3 , …)
Electrical Port
TC-SAW Temperature-Compensated SAWAcoustic wave propagates in a lateral direction
Si3N4 PassivationSiO2 Temperature Compensation
ElectrodesPiezoelectric Substrate
BAW – XBAR™Bulk Acoustic WaveAcoustic wave propagates in a vertical direction
Best performance requires precise process control and improved design
4G 4GCOST
PROCESS STEPS
PERFORMANCE
APPLICATIONS
Best in class performanceImproves temperature stability
4G & 5G
Simple, low cost Relatively low cost process Leverages standard industry process
Thin piezolayer
Electrodes
SiO2
Si -substrate
Air Gap
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RESONANT TRANSFORMS THE RF FILTER MARKET
Market Dynamics• Increasing Number of Bands• Increasingly Complex• Lack of Design Resources
Market Needs• Design Efficiency• Lower Cost Process• Faster Time to Market
Resonant Provides• Design Precision• Complex High frequency designs in
SAW & TC-SAW• Increased GM
Expansion Phase (Today)Multiple Market SegmentsMultiple Complex Designs
Validation Phase (2017)Technology ValidationMultiple Designs
Transformative Phase (2015-2016)Technology DevelopmentSingle Design
B4
B3
B1GPS
B8
B6
B20B26B13
B2
B40B42
B43
B41
B41(NB)
B7B22
GSM Rx
B3
B1GPS
B8
B6
B20B26B13
B2
B40B42
B43
B41
B41(NB)
B7B22
GSM Rx
B4
B3
B1GPS
B8
B6
B20B26B13
B2
B40B42
B43
B41
B41(NB)
B7B22
GSM Rx
B4
Shortens development time Enabling high performance filters with low cost process technology
• High frequency• Complex multiplexing
Disrupting the filter supply chain, enables rapid new market entrants• Fabless model/ Foundries
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RESONANT DESIGN DISTRIBUTION
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
- 50 100 150
$ MillionsA N N U A L V O L U M E
C U
S T
O M
E R
E
N A
B L
E D
M
A R
G I
N
• ASP = $0.54• Representative designs:
QPX, WiFi Co-exist
• ASP = $0.26• Representative designs:
High volume, discrete duplexers, B2, B3
• ASP = $0.24• Representative designs:
High performance module duplexers
• ASP = $0.09• Representative designs:
High volume B1, B5, B8
= Bands Under Contract
Sources: Yole Developpement, Navian
High Growth, High Margin
High Volume High Margin Stable Growth
Strategic:High Growth, New Process, TCSAW
Representative of the sockets we have contracted
Focusing on filter designs that enable higher margins for customers
Expect at least 20 accepted by our customers and as many as 10 designs qualified by OEMs and available to ship by end of 2018
Anticipated contracted royalty rates ranging from 10% - 20%
30% - 70% success rate
Strategically engaging customers on designs with lower enabled margin to enable them to enter a new category or market
Strategic:Fabless / Foundry Model
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CUSTOMER CONTRACTS AND ANNUAL REVENUE POTENTIAL
$0
Dolla
rs (m
illio
ns)
>25Devices
Contracted
>50Devices
Contracted
~75 Devices
Contracted
Years
TODAY
700
600
500
400
300
200
100
0
2015 YE 2016 YE 2017 YE 2018 YE
Customers’ Annual Revenue Potential
$290M
$112M
$600M
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IP PORTFOLIO CONTINUES TO GROW
Six IP families protect Resonant methods and circuit designs.
METHODS CIRCUIT DESIGNS
Physical Implementation
ISN®Design Synthesis & Optimization Speed
Simulation Accuracy
Next Generation Designs & Architectures
Circuit Structure
Critical Design Requirements
>150 Pending & Issued
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COMPANY HISTORY & FINANCIALS
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2019 TO BUILD ON MOMENTUM OF CONSISTENT EXECUTION
20142013
2012
20172016
2018
2015
Resonant Founded
New TeamLeadership
Development Year• 1 Customer Engagement
• 1st White Paper on ISN®
Validation Year•Devices In Phones•First Royalty Revenues
•8 Customers under contract
•>50 Total Designs Contracted
•Grew Executive Team
Expansion Year•More Devices in Phones•Ramping Royalty Revenues
•Growth in Customer Base to a total of 10
•Vertically Integrated Customers
•Fabless Customers•Foundry Customers
•Expand our ISN® Platform•Continued Increase in Shareholder Value
Transformative Year•6 Customers under Contract
•>25 Total Designs •Contracted•Combination JDA’s & LA’s
•Acquired GVR
IPO Year• IPO•Advance ISN®
Launch Year•Seed financing
•Begin hiring, launch ISN®
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SUMMARY FINANCIAL INFORMATION
Sep 30, 2018Actual
Cash, investments & equivalents $ 26.4 M
Other current assets 0.4 M
Long-term assets 4.2 M
Total assets $ 31.0 M
Total liabilities $ 2.7 M
Stockholders’ equity 28.3 M
Total liabilities and stockholders’ equity $ 31.0 M
Shares outstanding 27.0 M
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TEAM
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EXECUTIVE TEAM
George HolmesCEO & Director
30+ years leadership in sales & marketing and
management
Neal FenziExecutive Vice
President of Engineering & Co-Founder
20+ years in engineering, operations and marketing
positions at STI; BSEE
Bob HammondCTO
& Co-founder
20+ years as Founder and CTO of STI;
Physics Ph.D. Caltech
Marty McDermutCFO
as of 11/15/18
30+ years in financial and accounting management;
CPA
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INDEPENDENT BOARD MEMBERS
Chairman &Independent
Director
John Major
Multiple board memberships
with public and private
high-tech companies
Michael Fox
Independent Director
Financial expertise in
capital markets, shareholder interests and
strategy
Janet Cooper
Independent Director
Financial expertise in
capital markets, audit, tax,
accounting, treasury and risk-
management
Jean Rankin
Independent Director
Governance, compliance,
regulatory and licensing
expertise within the
semiconductor industry
Alan Howe
Independent Director
Operational, corporate finance, business devt. and
leadership exp. Strategic in-depth knowledge of the wireless, telecom, high technology
and software industries
Jack Jacobs
Independent Director
Public company, corporate
governance and leadership
experience
Josh Jacobs
Independent Director
Extensive experience
commercializing technologies
Brett Conrad
Independent Director
Experience in building and
selling companies.
Capital markets expertise
Bob Tirva
Independent Director
Extensive corporate and
managerial finance
experience in IT & services and semiconductor
industries
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▪ Large, growing market, 21% CAGR, as the RF front-end industry undergoes dramatic increases in growth and complexity due to:
• Need for more bandwidth, especially due to initial 5G deployments• Band Proliferation• Carrier Aggregation
• Overall increases in RF Front-End complexity
▪ Resonant’s revolutionary ISN® platform expected to disrupt the RFFE supply chain and enable new entrants into the market that has been dominated by only a few large players
• Devices currently shipping have increased customers’ share of market 2x -10x their average market share • Greater efficiency that allows more designs per designer
▪ Resonant continues to retire risk through execution both internally and externally• New tools (ISN) and IP that enable rapid time to market
• ISN COMPARE™ - real time comparative analytics• XBAR™ - extending ISN into BAW• PMTx™ - validates software modules with customers
• Our business model is licensing designs on a per-unit royalty basis• Creation of a Fabless ecosystem through Resonant’s ISN Foundry Program
SUMMARY
Sources: Yole Developpement, Navian
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