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Radsone Introduction

Radsone Inc. November 2017

RADSONE

This document contains confidential information that is proprietary to RADSONE Inc.No part of its contents may be copied, disclosed, or conveyed to any party in any manner whatsoever without prior written permission from RADSONE Inc.

Copyright ©2017 by RADSONE Inc. All rights reserved.

585 Broadway Street, Redwood City, CA 94063, USAemail : jay@radsone.com

2RADSONE

1. Company

2. Target Market

3. Business Model

• IP & Solution

• Product

4. Team

Table of Contents

Smartphone audio output interfaces are changing from analog to digital. Radsone has the best performance Bluetooth audio (wireless) and USB audio (wired) solutions which are gaining ground rapidly. Licensees are LG, Audio-Technica, Astell&Kern, Bugs music, etc. Radsone solutions are IP library, system design and firmware, applications, or hardware finished products including EarStudio Bluetooth receiver designed to deliver the better than CD quality sound wirelessly. Our goal is to successfully apply our technologies in the global market, as well as expanding our IP business worldwide.

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Company

Overview

Radsone provides audio IP based solutions especially for smartphone audio

Target Market

BLUETOOTH AUDIO MARKET

Products

IP SOLUTION AUDIO DEVICE

Hi-Res Bluetooth Receiver

AI Bluetooth earphone (under development)

Hi-Res Bluetooth SolutionsPatented IPs

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Target Market

Hi-Res Audio Market Bluetooth Audio Market

• Digital streaming services are increasing the number of high-quality(FLAC) sound and shifting their focus to Hi-Res audio(45% of Tidal users are Hi-Fi Tier).

• Smartphone manufacturing brands are introducing support for playback of Hi-Res audio files.

• Samsung(UHQ), Qualcomm(aptX HD) and Sony(LDAC) have put out their own Bluetooth 24bit codec.

• Hi-Res products account for more than 50% of SONY's total earphone / headphone sales – Source: SONY Korea

• Apple removes 3.5mm jack on iPhone 7 / Android devices are to remove jacks in 2018, reportedly.

• The wireless audio market is expected to be worth as much as $38.5 billion by 2023, up from just $6.9 billion in 2014. – Source: marketsandmarkets.com

• The Bluetooth speaker market is growing at a CAGR of 38.73% to reach $7 billion by 2019. – Source: reportsandreports.com

• The “wireless” sector of Qualcomm’s business is to grow from 17% in 2016 to 68% in 2021. - Qualcomm BT audio report

Hi-Res Audio Market Bluetooth Audio Market

EarStudio’s Target Market: The Hi-Res Sector of the Bluetooth Audio Market

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Business Model - IP & Solution

IP Name Country Patent Status Main Features Target Devices

DCT

US Registered

Quantization Noise elimination in digital sound sources Digital audio devicesSouth Korea Registered

Japan Registered

DualDrive

US Pending

2x current for single-ended

2x voltage for full differential

3.5mm and 2.5mm

output devices

South Korea Registered

Japan Pending

China Pending

In-Voice South Korea PendingAmbient noise-free voice capture for AI earphones,

enabling robust speech recognitionEarphones

Perfect DACUS Pending DAC design architecture fully converting 24-bit precision to

analogDigital audio devices

South Korea Registered

Automatic Sound

Control

US PendingAutomatic sound controlling technology based on the

orientation of speakerActive speakers

South Korea Registered

Dynamic EQ N/A N/A EQ without volume decrease Digital audio devices

Crossfeed N/A N/AEnhancement of headphone listening experiences close to

external speakerHeadphones/Earphones

*For more information, please refer to radsone.com

IP Introduction

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Business Model - IP & Solution

Hi-Res Bluetooth Introduction

Qualcomm-chip based Hi-Res Bluetooth Solution

• Solution includes Radsone’s unique enhancement technologies: DCT and DualDrive IP. • Most Bluetooth devices in the current market are 16bit (convenient yet low-quality) • The Bluetooth market is trending towards 24bit since 2016.

Bluetooth Control App Headphones/Speakers

Qualcomm CSRBT 24bit Chip

aptX HD decoder+

DCT Blue

24bit DAC

DualDrive

aptX HD 24bit

BT 24bit

Solution Composition

Full 24bit H/W F/WRadsone IP

(DCT, DualDrive) Control App+ + +

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Business Model - IP & Solution

IP & Solution References

Astell&Kern Bluetooth Amplifier AK XB10, XHA-9000 (DCT on/off)

Qualcomm CSR

(DCT integrated as a validated IP for following 24bit aptX HD products)

NHN Entertainment Streaming Service Bugs Music (DCT on/off)

Audio-Technica Bluetooth Headphone DSR9BT, DSR7BT (DCT used as default)

LG Bluetooth Headset HBS-1100(Tone+)

(DCT @Tone Platinum mode)

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USBBluetooth

+

Lossless Audiofor PC/Smartphone

Full 24bit Audiofor PC/Smartphone

Business Model - Product

EarStudio

World’s first studio-quality 24bit Bluetooth receiver

•Audio accessory with both the wireless (Bluetooth) and wired (USB) input •High-quality 24bit sound playback through Bluetooth •Competitive pricing (lowered by 60%) compared to XB10 by Astell&Kern •Successfully $142,799 crowdfunded (700% compared to the goal) •Kickstarter Link: http://kck.st/2qHnlfX

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Business Model - Product

Radsone

Music player app - Radsone

•Over 1.4 M downloads, #1 in 47 countries •DCT with professional EQ integrated into an elegant style music player •EQ, volume precision control, FLAC support, folder/playlist management and more

The Team

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Team

• CEO + Engineers (firmware & applications) + Marketing + Sales

CEO Background

•Electronics Engineering, KAIST (MS) / SNU (BS) •Audio signal processing •LG - Audio DSP, Algorithms •Hyundai - Car Audio Systems, Algorithms •Member of Audio Engineering Society

Why Radsone?

Proven Commercialization Capability Patented Technologies

• Radsone was the first in the world to commercialize

Qualcomm’s aptX HD (March, 2016) • Radsone has developed most aptX HD supported audio

devices in the market (LG, Audio-Technica, Astell&Kern)

• Total of 10 registered patents worldwide including DCT

• Millions of audio products with DCT technology have

been sold in the market

Thank You