Espial Evo Technical Overview

Powering the TV
Experience
Everywhere
dsfsfds
August 2013
Espial Overview, March, 2015
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Forward Looking Statement
This presentation contains information that is forward looking information with respect to Espial within the meaning of Section
138.4(9) of the Ontario Securities Act (forward looking statements) and other applicable securities laws. In some cases, forwardlooking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions
concerning matters that are not historical facts. In particular, statements about anticipated benefits of new customer and partner
relationships, future opportunities for the company and products and any other statements regarding Espial’s future expectations,
beliefs, goals or prospects are or involve forward-looking information.
Forward-looking information is based on certain factors and assumptions. While the company considers these assumptions to be
reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature
necessarily involves risks and uncertainties, including Espial’s ability to effectively develop its distribution channels, and generate
increased demand for its products. Additional risks and uncertainties affecting Espial can be found in Espial’s Annual Report for the
fiscal year ended December 31, 2011 and in its most recent quarterly report filed on SEDAR at www.sedar.com. If any of these risks
or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove
incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained
herein. Espial assumes no obligation to update or revise any forward looking statements, whether as a result of new information,
future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only
as of the date hereof.
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Investment Highlights
Espial is a leading provider of user experience software solutions to TV
Service Providers and Smart TV Consumer Electronic Manufacturers
TV Service Providers
1 billion TV subscribers, $250 billion of revenue needs to be protected
Cable , Satellite and Telecom need to move to IP, Web platforms to compete
Smart TV Consumer Electronic Manufacturers
200 million TVs ship per year
20% smart or web enabled) today, 100% in next three years.
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Espial Overview
Tier 1 Service Providers
Customers
Smart TV Manufacturers
Customers
Deep Intellectual Property
$100 million + in R&D Investment
400+ IP Video Related Patent Claims
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Large Market Opportunity
Pay TV Service Providers
Cable
1 billion
subscribers
& billions of
devices
Satellite
Telco
Mobile
Espial Service
Management Software
IP Everywhere
VDSL, LTE, Satellite, Cable, Fibre
Espial Clients & HTML5 User
Experience Software
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The Problem for Service Providers
Service Provider
Cable
Competitive Threat
Satellite
Telecom
• Antiquated Closed
Platform
• Stifled Innovation
• High cost
• Tied to hardware
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Espial RDK based
HTML5 Platform
• Open Web Platform
• Rapid Innovation
• Low cost
• Hardware agnostic
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HTML5 User Experience re-invents the business of TV
Espial’s HTML5 platform enables
HTML5 high performance, cloud user experience & services
Rapid Service Velocity: New services, business models & revenue streams
Integrated with Comcast RDK platform
Comcast’s RDK platform gaining momentum
RDK, founded by Comcast, is open source operating system for set-top boxes
RDK supported by top global operators like Comcast, Liberty Global, Vodafone, Time Warner
180+ current licensees. Managed by RDK Management LLC.
Espial gaining mindshare. In discussions with 25 of top 60 global operators
Espial has attracted attention from world’s largest TV operators
Best in class product: fast, rich UX, vertically integrated UX  STB  Cloud
Announced Tier 1 North America cable customer
Strong pipeline (Paid POCs, multiple RFX engagements)
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Espial Proprietary & Confidential
( Disclosed under NDA )
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Espial Proprietary & Confidential
( Disclosed under NDA )
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Espial Proprietary & Confidential
( Disclosed under NDA )
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Growth Strategy
Distribution
Channels
(Joint sales &
marketing)
Upsell New Product
Offerings
Customers deploy devices and
subscribers
Add Service Provider & Consumer
Electronic Customers
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Exponential
customer reach
New add-on revenue streams
Ongoing Royalties & Recurring Support Fees
Initial License & Services Fees
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Financials
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FY 14 Record Revenue & EBITDA
$1,500,000
$5,500,000
Revenue
$4,500,000
Ebitda
$1,000,000
$500,000
$3,500,000
$0
Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
($500,000)
$2,500,000
($1,000,000)
$1,500,000
($1,500,000)
$500,000
($500,000)
($2,000,000)
Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
($2,500,000)
 FY14 revenue $20 million – an increase of 59% year over year
 FY14 $3.2 million in EBITDA
 Gross margin 79%
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Balance Sheet at December 31, 2014
Dec 31, 2014
CURRENT ASSETS
Cash
Accounts receivable
Investment tax credits receivable
Prepaid expenses
$
Property and equipment
Intangible Assets
Goodwill
$
CURRENT LIABILITIES
AP and accrued liabilities
Deferred revenue
18,111,324
3,861,058
312,329
567,853
22,852,564
 Strong cash balance
 No debt
727,626
1,496,794
3,340,808
28,417,792
$2,521,480
3,557,667
6,079,147
275,234
6,354,381
Provisions
Share capital
Warrants
91,072,570
928,063
Contributed surplus
12,986,590
Deficit
(82,923,812)
22,063,411
$
28,417,792
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Company Facts
Founded - 1997
Headcount - 105
Patents issued – 23 (approx 400 claims)
Patents pending - 2
TSX ticker - ESP
Shares outstanding – 27 million
Non-capital losses and SR&ED carry forward- $30 million
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