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Company Overview. April 2003. Advanced Wireless Automation (“AWA”) was founded in February 2002 to develop and market a break-through technology for use in a $1 billion market for remote security and intelligence gathering applications.
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Company Overview April 2003
Advanced Wireless Automation (“AWA”) was founded in February 2002 to develop and market a break-through technology for use in a $1 billion market for remote security and intelligence gathering applications. Our unique technology includes wireless data transmission combined with an ultra low power platform that covertly captures data based on local stimulus.
Team • Daniel C. Roy - VP Bus Dev, Co-founder • Experience in operations, strategic analysis and development • VP Finance / Operations Amaroq Inc, Manager – Accenture, • MBA – University of Chicago, BS Northeastern • Peter Faubert – VP Finance • Experience in financial reporting, venture financing, M&A • VP Finance–Burntsand, Finance Mgr-SupplierMarket, PWC • CPA, BS Northeastern • Gregory Perry – Network Engineer, Co-founder • Extensive experience in network, security and hardware engineering • Founder BroadIP, NETSEC • Consulting projects for FBI, FCC, Naval Research Labs • Mike Lyons – Director of Sales, Co-founder • 15+ years experience in technology sales and business development • Co-founder AMNET, Schlumberger Industries • BS Northeastern • Steve Cannellos – CEO and President • Over 20 years experience as Chairman of Board, Sr. Vice President and General Manager, of technology companies focused in Security, Optics, Networking and Telecommunication with Tyco, Sensormatic, General Electric, General Scanning and Apollo Computer. BSME and MBA from Clarkson University. • Andy Lowen – VP, Marketing • Over 20 years in General management, Product Management and Marketing in Security and Optical industries with Tyco, Sensormatic and General Scanning. BS from Brown University, MBA from Columbia. • Jason Riffel – Senior Engineering Architect • Over 15 years of embedded hardware and software design • Microsoft, Bsquare, BroadIP Networks, Cadre Engineering
Problems Existing Suppliers Customer Applications • Lockheed Martin • Raytheon • ITT Industries • Textron • Northrop Grumman • GE Interlogix • Tyco International (ADT Division) • Magal Security Systems • Axis AB • Oil Well Monitoring • Nuclear Power Plants – Extended Perimeter • Railroad Monitoring • Perimeter Security • Protection of Military installations / bases • Monitoring Enemy Troop Activities • Protection of National Borders and Ports • Aiding State and Local Law Enforcement SLIDE IN PROCESS – WILL UPDATE TOMORROW Existing suppliers have not solved the problem of providing a cost effective solution for motion activated remote video surveillance technology, as a result, valuable assets, natural resources and human lives are exposed.
Target Applications AWA’s technology is ideally suited for situations where there exist a need and desire to capture information critical to the protection of people and other valuable assets that are located in such a way that access to wired communications and grid power are severally constrained. Commercial / Industrial Military / Government • Oil Well Monitoring • Nuclear Power Plants • Railroad Monitoring • Perimeter Security • Protection of Military Installations / Bases • Monitoring Enemy Troop Activities • Protection of National Borders and Ports • Aiding State and Local Law Enforcement
Market Penetration Overall Market Projected Sales Military / Government Nuclear/Conventional Power Plants Border Patrol Port / Coastline Security Railroad Monitoring Remote Assets Perimeter Security Remote Land Management $300K $5.0M $12.0M $25.0M Over 500K Units $2.5 Billion Realizable Market $600M Cumulative Sales (2006) $42M Market Penetration 7%
Market Penetration - Successes to Date Since inception in February 2002, AWA has engaged one of the largest integrators in the industry as a lead customer (Lockheed Martin), has worked closely with Lockheed Martin and its customers to develop version 1.0 functionality, and has built and shipped version 1.0 product for deployment after a nine month development cycle. • Our version 1.0 units are installed at the following customer sites: • Department of Threat Reduction (Department of Defense) • Lockheed Martin • Pilgrim Nuclear Power Plant (Entergy) • Bureau of Land Management • M2M Data
Target Customers Our lead customer Lockheed Martin has active customers representing over 60% of our target market for remote surveillance applications and has introduced. Military / Government Commercial / Industrial • Protection of military installations, monitoring enemy troop activities and national security • Department of Defense * • Department of Homeland Security * • Department of Justice (CIA *, FBI *) • Lockheed Martin * • Raytheon • Textron • Protection of National Borders and Ports • Coast Guard * • INS * • Aiding State and Local Law Enforcement • Homeland Security Committees in NJ and MA • State Police in NJ and MA • Puerto Rico Conservation Trust • Oil Well Monitoring • Bureau of Land Management * • BP * • Nuclear Power Plants • Entergy • Dominion * • Railroad Monitoring • Union Pacific • Burlington Northern • CSX Corporation • Norfolk Southern • Perimeter Security • Tyco (ADT Division) • Industry Distributors • System Integrators * Technology introduced to customer by Lockheed Martin
Sales and Marketing Strategy Commercial / Industrial Segment Military / Government Segment • Expand Penetration by leveraging • relationships with Integrator partners • Leverage Existing Contacts in Government • Related Integrators • Leverage Commercial Security contacts • Establish Integration partnerships with • Leading Access Control and Video Companies. • Leverage Relationships in the security • Distribution Channels SLIDE IN PROCESS – WILL UPDATE TOMORROW
Technology Overview Wireless Sensor Platform ))) Digital Signal Processor Wireless Modem Main Processing Board Customer Network Operation Center (Data storage and access point) Supervisory Processor Digital Imager Motion Sensor Sensor Array Power Supply – Lithium Cells GPS Temp Other • Web-based Access (from PC, PDA, or other handheld device) • Email / Pager Alerts • Ability to Integrate Pattern/Behavior Recognition. • Ultra-Low Powered Designand Integration • Expandable sensor ports (wind, biological agents, thermal imaging, etc) • Standard or covert packaging • Proprietary Wavelet Image Compression Software • Highly Secure Encrypted Data Exchange
Product Roadmap SLIDE IN PROCESS – WILL UPDATE TOMORROW
Competitive Technology Advantage • AWA Key Points of Differentiation… • Ultra Low Power – Proprietary System power management architecture. • Wireless– Proprietary power management design and compression technology. • Security– Military grade encryption (3DES / AES link-layer and DH DSA public key certificates) • High-Resolution– 1280 x1024 resolution capabilities (forensic quality images from remote locations) • Cost-effective– Designed for rapid deployment in remote settings without addition of costly infrastructure. SLIDE IN PROCESS – WILL UPDATE TOMORROW First Mover in an emerging market for remote security and intelligence gathering
Competitive Landscape Residential Commercial /Industrial Government / Military Customer Segment Hughes Dedicated Satellite NRO AWA Other Wireless X10 Eagle Broadband Spy Gate Primary Competitors GE Interlogix Magal Security Systems Philips Tyco CCTV Napco Honeywell Pelco CompuDyne (Quanta) Ultrak Axis Imaging Security Technology
Competitive Analysis Magal Security $43M Traditional Powered CCTV/LAN transmission Eagle Broadband $25 M Telecom Co-Announced a similar product – Axis AB $78M IP CCTV with 802.11 wireless capability Premier Wireless Private Wireless transmission for Full Motion Video GE/Interlogix $900M Acquisitions focused in General Security Honeywell $1.5B Focused in General Security Market Tyco $2.0B General unfocused Security Products SLIDE IN PROCESS – WILL UPDATE TOMORROW
Organizational Structure CEO / President S. Cannellos VP Finance P. Faubert VP Engineering TBD VP Bus Dev. D. Roy VP Marketing A. Lowen VP Sales TBD Eng. Architect J. Riffel Project Manager TBD Sales Director M. Lyons 3 Software Eng. TBD 3 Hardware Eng. TBD 2 Network / Systems Eng. G. Perry / TBD 2 Production Eng. TBD Key Short-Term Hires
Team • Daniel C. Roy - VP Bus Dev, Co-founder • Experience in operations, strategic analysis and development • VP Finance / Operations Amaroq Inc, Manager – Accenture, • MBA – University of Chicago, BS Northeastern • Peter Faubert – VP Finance • Experience in financial reporting, venture financing, M&A • VP Finance–Burntsand, Finance Mgr-SupplierMarket, PWC • CPA, BS Northeastern • Gregory Perry – Network Engineer, Co-founder • Extensive experience in network, security and hardware engineering • Founder BroadIP, NETSEC • Consulting projects for FBI, FCC, Naval Research Labs • Mike Lyons – Director of Sales, Co-founder • 15+ years experience in technology sales and business development • Co-founder AMNET, Schlumberger Industries • BS Northeastern • Steve Cannellos – CEO and President • Over 20 years experience as Chairman of Board, Sr. Vice President and General Manager, of technology companies focused in Security, Optics, Networking and Telecommunication with Tyco, Sensormatic, General Electric, General Scanning and Apollo Computer. BSME and MBA from Clarkson University. • Andy Lowen – VP, Marketing • Over 20 years in General management, Product Management and Marketing in Security and Optical industries with Tyco, Sensormatic and General Scanning. BS from Brown University, MBA from Columbia. • Jason Riffel – Senior Engineering Architect • Over 15 years of embedded hardware and software design • Microsoft, Bsquare, BroadIP Networks, Cadre Engineering
Financial Projections • Cash flow positive: Q1 2005 • Liquidity Event (strategic sale): 2006
Cash Sources and Uses • Funding Requested: $3.5 Million • Additional Funding Required: $4M in Q3 2004
Corporate Development Objectives Based on our funding requirements of $3.5 million, AWA has established the following target milestones: • Complete Management Team • Product Development: • Release V1.2 by Q3-03 • Release V2.0 by Q1-04 • Build Business Development and Integration Partners • Achieve $ M Revenue Run Rate by Q3-2004
Summary TechnologyUnique wireless imaging and sensor technology, positioned as a first-mover in an existing market for cost-effective, remote monitoring systems utilizing ultra low power architecture. Market Size$600M - $1.2 B TeamTechnical expertise in embedded system design, low-powered and wireless technology applications. Broad financial, strategic and operational experience in startup, growth-stage, and mature companies. Experienced team of advisors. Funding Seeking $3.5 million to fund operations through Q3 2004
APPENDIX NEED TO REVISIT SLIDES TO BE LEFT IN THE APPENDIX
Advanced Wireless Automation Attributes Project to build an Enterprise Value of $100 million Ultra Low Power Application Wireless Communication Integration Unique Systems Architecture World Class Engineering Team Patent Positions Management Team Experienced in Electronic Security
Appendix B - Target Customers 2003 Market Opportunity • Military / Gov’t (DTRA) • Nuclear Power Plants (Entergy, Dominion) • Border Patrol (INS) • Ports / Coastlines (US Coast Guard) • Railroads ( • Oil Wells (BLM) • 200-300 units • $1.5M - $3.0M • 75 - 90 units • $550K - $900K 2003 Target Results
Appendix D - Competitive Technology Comparison Strengths Limitations • Expensive • Angle of view is fixed and may not be suitable for on-the-ground surveillance needs • Reach / Coverage • High Resolution / zoom capabilities Dedicated Satellites • Transmission is not secure and range is minimal • Battery life is measured in hours • Image quality is pretty low Other Wireless Imaging Technology • Inexpensive • Simple to deploy • Full-motion video • Proven and accepted security technology CCTV (Closed-circuit Television) • Reliant on wired communications link and grid power source