Spectra7 Microsystems, Inc.

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January  2016    

What is Spectra7

We make electronic products smaller, lighter, clearer, faster and less expensive

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Patented Single Sourced

High Gross Margin Mechanical / Silicon / Speed

47  Patents

39  Experts

50+  Brands

Must Have Technology

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5   Vertical Markets

Market Opportunity

Augmented Reality

Drone Tech.

Wearable Tech.

Virtual Reality High-End Displays Data Centers $120B by 2020

— Digi-Capital

$30B by 2020 — Digi-Capital

$30.4B by 2020 — Transparency Market Research

$5.6B by 2020 — Markets and Markets

$11.6B by 2020 — Markets and Markets

$152B by 2016 — Canalys

9.2% CAGR  

32.2% CAGR  

NEW MARKET   15.3% CAGR  

12.55% CAGR  NEW MARKET  

Spectra7 Team

Tony StelligaCEO

CEO Quellan; CEO Softcom;EVP Newbridge Micro;

Divisional Director Intel Corp.

Dr. Andrew KimCTO & VP, ENGINEERING

PhD from MIT

Ebrahim AbunasrahVP, INTERCONNECT PRODUCTS GROUP

8 Years Product Development Experience

Charito AlcantaraVP, OPERATIONS

& CHANNEL MANAGEMENT20 Years Consumer Retail Sales ExperienceMonster Cable, Frys Electronics, CompUSA

Dave MierCFO

30 Years Experience in Tech; Sun Microsystems, Yahoo

John MitchellCHIEF MARKETING OFFICER

20 Years Product MarketingWith Major Design Wins

Cynthia ColeVP, GENERAL COUNSEL AND CORPORATE DEVELOPMENT

Over 15 years at theIntersection of Law and Technology

Bob DobkinDIRECTOR & INVESTOR

Co-Founder of Linear Tech$11B Market Cap

Ron PasekCHAIRMAN

CFO at Altera Corporation;VP and Corporate Treasurer

VR Market Opportunity

Spectra7 Announces Record Design-Ins and Expansion of Facility and Management

Multiple Design-Wins and Production Orders

Spectra7 Achieves Record Bookings in Third Quarter Appoints Vice President of Data Center Products

Revenue Growth

•  VR Market Emerging Rapidly

•  Gaming, healthcare, architecture, and business telepresence applications

•  Spectra7 Builds Wearable VR “Active InterConnects”

•  Dramatically Reduce Weight, Complexity

•  Ultra-high bandwidth Up to 50Gbps speeds

•  Near Zero Latency for truly immersive VR

DisplayDirect™ VR

…To a single ultra light-weight, ultra-thin VR Connect

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USB

POWER

HDMI

From 3 heavy and bulky Cables…

Dramatic Interconnect Miniaturization

4 1from bulky, Data, Audio, Power,

Video Cables… …into

Ultra-thin and light VR Cable.

Diameter Reduction and Speed Improvement Up to 95% conductor cross section reduction The Resultant Cable is also up to 90% lighter and runs up to 10 Times faster. Enabled by Spectra7’s patented Active Cable Technology

Enlarged cross section of bulky cable bundle

Spectra7 VR Chip Technology

Cross section of Spectra7 VR Cable

VR7050 For Gesture Recognition and Motion Sensing

•  Industry Move to Gesture From Controller •  Extensive Processing = High Bandwidth •  Extensive Processing = Latency •  Ultra Thin Low Latency Interconnect •  VR7050 Addresses These Issues

VR Market Opportunity: FORECAST: Global Virtual Reality Head-Mounted Display Shipments

•  VR: BI Intelligence (2015) Predicts: 5M Units 2016; 12M Units 2018

•  S7 Opportunity is $60M+ in 2018

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AR-Connect™

AR-Connect™

•  AR Purpose Built Interconnect System •  Ultra-Thin Wearable Interconnects

•  Up to 50 Gbps

•  Unified Interconnect •  Video, Data, Gesture, Gyro

AR Market Opportunity FORECAST: Smart Glasses Adoption

•  AR.org (2015) Predicts 50-100M Units in 2018 •  S7 Opportunity is $175M+ in 2018

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Weaveable Interconnects

DisplayDirectTM is for UltraHD Panels

•  Industry has moved to 4K Ultra for unprecedented immersive Display

•  Electronics requirements: 8million pixels at 50 Gb/s

•  OEMs are still incorporating electronics behind class making display thicker and heavy

DisplayDirectTM is for UltraHD Panels

DisplayDirect™ allows for: •  Video processing electronics to be

removed or externalized •  Removal of power management •  Elimination of LED backlighting in favor of

OLED displays •  Evolution of speaker technology to be

replaced by a transparent vibrating membrane

•  And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed

DisplayDirectTM is for UltraHD Panels

DisplayDirect™ allows for: •  Video processing electronics to be

removed or externalized •  Removal of power management •  Elimination of LED backlighting in favor of

OLED displays •  Evolution of speaker technology to be

replaced by a transparent vibrating membrane

•  And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed

DisplayDirectTM is for UltraHD Panels

DisplayDirect™ allows for: •  Video processing electronics to be

removed or externalized •  Removal of power management •  Elimination of LED backlighting in favor of

OLED displays •  Evolution of speaker technology to be

replaced by a transparent vibrating membrane

•  And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed

DisplayDirectTM is for UltraHD Panels

DisplayDirect™ allows for: •  Video processing electronics to be

removed or externalized •  Removal of power management •  Elimination of LED backlighting in favor of

OLED displays •  Evolution of speaker technology to be

replaced by a transparent thin vibrating membrane

•  And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed

DisplayDirectTM is for UltraHD Panels

DisplayDirect™ allows for: •  Video processing electronics to be

removed or externalized •  Removal of power management •  Elimination of LED backlighting in favor of

OLED displays •  Evolution of speaker technology to be

replaced by a transparent vibrating membrane

•  And finally the removal of mechanical bracing and struts because 30 lbs of electronics are removed, along with Metal Shielding

DisplayDirectTM is for HD Panels

•  Glass at 3.5mm thin and 65” diagonal •  No need for an external power cord to stick in to

the wall and ultra lite-weight •  Essentially a hangable, flexible poster type

display •  The power, gesture and raw video information

is delivered from the base or up to 30 ft away •  Interface can interpreted thru gesture

recognition… just like we do in VR.

•  High quality (true 1080p & 4k) •  Ultra Long Cables (over 30M) •  Over 50 Brands Using S7 •  Leading Customer: Monster

Cable installers currently using Spectra7 •  Retailers and “E-Tailers”

HomeTheater™

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“Active-C”: Ultra-Thin USB Type-C Interconnects

USB Type C For Ultra Slim Industrial Design

USB Type C Industry Initiative

Worldwide shipment of USB-enabled devices -  USB is the most successful interface in the history of PC -  Device charging over USB has become a major consumer feature -  USB installed base is 10+ billion units and growing at 4+ billion units a year -  Total USB device shipments will reach 5 billion annually by 2016,

an increase of 41% from 2010

Active Copper Opportunity in Data Centers

•  $128B Market in 2016 •  $152B New Investment in 2016 •  S7 Addresses Short Reach Cluster I/C •  S7 Reduces OpEx and CapEx •  Up to 80% power reduction over fiber

–  Reduction in data center power –  Up to 65% Lower Cost over Fiber

•  Dramatically Thinner Over Copper for Increased Air Flow

•  Much Higher Flexibility vs Copper for Greater Density

Expanding into New Vertical Markets

2.1B Units '14 $280M Oppy 56% CAGR

150M Unit Base ‘18 $375M Oppy 120% CAGR

70M Units Base '18 $210M Oppy >100% CAGR

100M Unit Base '18 $250M Oppy 72% CAGR

280M Base '15 $35M Oppy 9% CAGR

15M Units '14 $80M Oppy 86% CAGR

35M Units '14 $50M Oppy 12% CAGR

Share Structure and Key Statistics

Shares %

Common Shares Issued 125M* 100%

Share Price $.415*

Market Capitalization $52M*

TTM Revenue (9/30/15) $4.6M USD

TTM Gross Margin(9/30/15) 72%

Cash Balance (9/30/15) $5.6M (USD)

Attractive Financial Model

Positioned for Growth

*As at 01/19/16 All Figures in CDN $ unless otherwise noted

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