ljn presentation deck - short

8/7/2019 LJN Presentation deck - short

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Company

Overview

Delivering Convergence, guaranteeing quality, and doubling bandwidthover mobile wireless networks


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Proprietary

La Jolla Networks, Inc.

*Chetan Sharma Consulting Broadband Growth 2009

Vision

DeliverTriplePlay+MobiletowirelessNetworks

ProvidebroadcastTV,uninterruptedvoice,manageddata,resilientmobile Mission

BringingconvergencetotheLastmilewirelessnetworks Achievetrue TriplePlay+Mobile (TV,voice,data,mobile)

Strategy

EarliestcombiningofemergingtechnologiesforresourceoptimizationNMS,WebFilters,Accelerators,Compressors,backhaul,Basestation,RF,

mobiledevices Softwarecentric Putintelligenceintosoftware,usecommodityhardware GuaranteeQualityresourcemanagementovertheLastmilenetwork

Increasenetworkcapacity,densityandrangeby2x

FinancialObjective 50Mbeneficialsubscribersinsixyearsfrompublishedspecification* Valuationover$1B


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LJNTeam

Charles

duPontChairman

Dr. YendoHu

CTO

Dr. LenGrossVP-

Software

AliHedayati

BoardAdvisor

Marv TseuBoard

Advisor

Dr. DickPosnerVP-RF

BrianBrittsan

Pres./COO

La Jolla Networks Team


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StateoftheIndustry:

Wirelessnetworkbandwidthrequirementswillincrease32timesoverthenextthreeyears

31additionalcellhubs/towersforeveryexistinghub/tower.

Industryresponsetodatehasbeentoaddbandwidth&towers

BruteForceapproachnotsustainable.

Lastmilewirelessnetworkresourcesaremanagedeitherlocallyornotatall

LJNsapproach:

Introduceunifiedresourcemanagementoverallcomponentswithinthelastmile

DeliveraguaranteedQualityofServicesthroughendtoendtrafficmanagement Provideascalableplatformoverallnetworkconfigurations

Dynamicnetworkoptimizationthatdoubleswirelessnetworkefficiencies

Current Business Focus


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WiBUS Market Segments

LastmileMobileWireless AchieveguaranteedQoSoverTripleplay+Mobile ConstantQualityofServiceovercongestedwirelessnetworks Increasingwirelessnetworkconvergeddatacapacityby2x Seamlesslyoperateoverexistingandlegacynetworks Scalabletonextgeneration4Gnetworks Interoperatesovermultiplevendorsolutions

WirelessBackhaul BringingdistanceandreliabilitytoMicrowavelinks Increaseduserdensity,capacityandrangeby2x OptimalBandwidthUtilization Reducedinfrastructurerequirements

Customerprospects=AT&T,Verizon,SingTel,Sprint,

ExecutiveSummary

LJNsTotalAvailableMarket 2B subs@1,100subspertower/basestation1 x$30k systemsale=$55B Servicecontracts=10%ofsystemsales=$5.5B LJNsmarketsize=$55billioninsystemsalesand$5.5billioninservices

1. CiscoVisual Networking Index


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Exponential Mobile Broadband Growth

200

500

800

1100

1400

1700

2000

5 6 7 8 9 10 11 12

FixedBroadband MobileBroadband

Subs

Millions

Mobile=$190B

Fixed=

$50B

Primary markets include: Mobile Last-mileand wireless backhaul.

Vertical markets include: Government,Military, Medical, B2B, etc.

CiscoVisual Networking Index


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Wi-BUS Customer Applications

WiBusMobile WiBUSBackhaul

MobileBroadbandNetworks BasestationRadioAreaNetworks

Emergency,disasterrecoverynetworks BackhaulnetworksforWiFiandWiMAX

MobileFlyAwaynetworks LongrangeBackhaulfordatacenters

Govt.tacticalnetworks Corenetworkbridgesforruralconnectivity


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CompanyCustomer Partner Vendor Competitor

AT&T

Verizon

SingTel

Globe

Mogul/Arcon

Oi (Brazil)

Motorola

Nortel

Emerson

Continuous Computing Propel

PicoChip

ByteMobile

ConteXtream

Customer/Partner/Vendor


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Television Telephone Internet +Mobile

AConvergenceSoftwareCompany

Bringemergingtechnologiesforresourceoptimizationtotheedgenetworks

NMS,WebFilters,Accelerators,Compressors,backhaul,Basestation,RF,mobiledevices

ChaosOrder 2x performance gain


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LastMileWireless

ResourceManagementFramework

BackHaulRAN(Citywide)

(e.g.100MileReach)

WiBUS

EdgeOptimizationCoverage

Telephone(Nationwide)

Television(Nationwide)

Internet(Nationwide)

LastMile Network singlecellstation

(15MileReach)


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Confidential

TrafficControlEfficiencies

ToolBooth

SCA

ControlG

ateScheduling

Walk Way

Toll Lane

Fast Lane

Bus Lane

Uncontrolled

Bike Lane


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Wi-BUS: Unified Transmission Control

BasebandProcessing

Audio

Video

Data

Content Analysis

Content Transformation

Data Prioritization

Data Multiplexing

BackBone

RF Link Analysis

Error Protection

Channel allocation

RF

Processing

RF Link Analysis

Error Protection

Content Analysis

Mobile Device

Processing

Content Transform

RF

Unified Transmission Controller


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Wi-BUS Wireless Product Summary

Backhaul

Wi

BUS

Unified Transmission Controller BaseIncludes all functions within LJM1000, LJA1000,

LJC1000, and the LJX1000 modules.

LJT1000 Head End RF Base Station

Supports WiBUS transmission protocol at the datalink layer.

Configurable multichannel modulation.

Broad operating frequencies from UHF to

microwave.

Scalable to other modulations and RF transmission

protocols for future proofing.

LJR1000 Terminal Transceiver Platform

SupportsWiBUSdatalinklayerprotocol.

Adaptstoafactoryconfigurablemultichannelmultibandtransceiver.

SupportsembeddedprocessingengineforWiBUSdriverfunctions

Compatiblewithexistingconsumerhandset/gatewayplatforms.

Mobile

LJM1000

Network Management SystemUnified Transmission Controller (UTC) for

realtime dynamic reconfiguration.

LJA1000 Content Analysis System

Realtime analysis of base band content

Full duplex analysis over both uplink and

the down link pipes.

Realtime content classification.

LJC1000 Content Processor System

Baseband content transformation engine.

Compression, decompression, filtering, re

ordering, and packetization support. LJX1000 Packet Multiplexer

Carriesallrealtimedataqueries,dynamicconfiguration,andscheduledevents

Executelowlevelpacketmultiplexing/demultiplexingfunctions


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UnifiedTransmitControlFramework(UTC) ContentAwareEdgeProcessing

FullDuplexPacketPrioritizationScheduling

ContentAwareRFConfiguration

Serviceprovidertopresentationdevicefullduplexcommunication

Variablepacketlengthsynchronization

Lowoverhead/Lowdelaysessionmanagementanddatadelivery

Highlyscalablemultiusernetworkarchitecture

Realtimeadaptivebandwidthrequest/assignmentprotocol

BroadbandQoSconfigurablepacketscheduler

Intelligentnetworktrafficregulation

IP Portfolio Coverage

ExecutiveSummary


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Serviceprovidertopresentationdevicefullduplexcommunication

Variablepacketlengthsynchronization

Lowoverhead/Lowdelaysessionmanagementanddatadelivery

Highlyscalablemultiusernetworkarchitecture

Realtimeadaptivebandwidthrequest/assignmentprotocol

BroadbandQoSconfigurablepacketscheduler

Intelligentnetworktrafficregulation

7grantedpatentsand16pendingapplicationsworldwide

Published Patents/Application


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Revenue & Project ROI

WiBUSController $30,000

GrossMargin 45%

EBITDA 15%RevenueMultiple 4

Assumptions:

Subscriberspertower1,100

Towercosts $250,000

InfrastructureROI

LAGACYCOSTS

CellHubcosts 250,000

Total $250,000

INVESTMENTS

WiBUSController ($30,000)

10%Servicefee (3,000)

Total ($33,000)

NETVALUE

Total $217,000

1styearnetreturn $217,000

ROI(1styear) 657.58%

Year 2012 2013 2014 2015 2016 2017 2018

WiBUSControllers 9 127 1,000 4,000 6,364 8,182 10,000

Revenue $270,000 $3,810,000 $30,000,000 $120,000,000 $190,920,000 $245,460,000 $300,000,000

GrossMargin $121,500 $1,714,500 $13,500,000 $54,000,000 $85,914,000 $110,457,000 $135,000,000

EBITDA $40,500 $571,500 $4,500,000 $18,000,000 $28,638,000 $36,819,000 $45,000,000

ExitValuation $1,080,000 $15,240,000 $120,000,000 $480,000,000 $763,680,000 $981,840,000 $1,200,000,000


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Capitalization and Use of Proceeds

WiBUSDevelopmentPeriod

SystemSubsetDemonstration: 4 months $250k

FullSystemDemonstration 4 months $1.250M CommercialDemonstration: 10months $4.5M CommercialDeployment 18months

UseofProceeds

Engineering: $2,100,000 CapitalEquipment: $1,000,000 ProductdevelopmentNRE: $1,700,000 GeneralWorkingCapital: $1,200,000 Total: $6,000,000

RevenueOpportunity Systemsalestooperators LicensingWiBUSsystemcontrols WiBUSnetworksupportservices Equipmentsalesandroyalties


18/18

Confidential

La Jolla Networks, Inc.

Thank You

858-412-3116

[email protected]

9882 La Jolla Farms RoadLa Jolla, CA 92037

ContactInformation

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