01 06-16 carlson - crowdfunder private and confidential 10 slide deck v4

Copyright 2015 Carlson Wireless Technologies Inc. 1

Jim Carlson, CEOMark O’Connor, [email protected]@CarlsonWireless.com

Connecting the Next 4 Billion

mailto:[email protected]

mailto:[email protected]


4 Billion People Have No Internet Access

Why? Solutions for many rural areas and developing countries aren't economically feasible.


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


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


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.


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


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.


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


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


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+