XTouch - UniPixel

UniPixel
Investor Presentation
May, 2016
Disclaimer
All statements in this presentation that are not based on historical fact are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended
including the statement that UniPixel’s integrated technologies are expected to provide enhanced yields at a
lower cost, thereby expanding UniPixel’s competitiveness in the touch screen market. While management has
based any forward-looking statements contained herein on its current expectations, the information on which
such expectations were based may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors,
many of which are outside of our control, that could cause actual results to materially differ from such
statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set
forth under Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014.
We operate in a highly competitive and rapidly changing environment, thus new or unforeseen risks may arise.
Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual
results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking
statements. Anyone reviewing this presentation is also urged to carefully review and consider the other
various disclosures in the company's Annual Report on Form 10-K, quarterly reports on Form 10-Q and Current
Reports on Form 8-K.
Trademarks in this release are the property of their respective owners.
2
UniPixel Overview
 Leader in Touch screen IP used in tablets, laptops, 2 in 1’s, automotive
 Projected Capacitive is the largest segment of touch TAM, offering the best user
experience by finger, active or passive stylus
 Our copper Metal Mesh is the fastest, most responsive touch screen technology on the market
today using finger or stylus
 Touch Sensors is a $7B TAM, and we target a $5B SAM
 21 wins with world class customers in <1 year of commercialization, 4 shipping
 $15-17M revenue in “active order pipeline” H216 thru 17 based on estimates provided by
customers for Design Wins
 RFQ volumes ramping quickly as we make Approved Vendor List for key OEMs & Integrators
 60 issued patents (34 US) + 151 pending patents (71 US)
 HQ in Santa Clara; Mfg. in in Colorado Springs; R&D Houston; and Sales in Taiwan, Houston, and
Santa Clara
 UniPixel (Nasdaq: UNXL) has 36.6M shares o/s; 2.59M options/restricted stock (WAEP $6.29);
and 11.07M warrants at WAEP of ~ $1.59
Note: 1.595M warrants exercised post Q16. Warrants now at 9.475M
3
XTouch: State-of-the-Art Technology

XTouch outperforms current indium tin-oxide (ITO) and
other silver or copper metal mesh technologies:
 Superior Sensor Performance
 Flexible for enabling touch on curved surfaces
 Competitive on Price NOW; even more so in coming
quarters as yields increase
 Sensitivity to stylus better

DiamondGuard coating on XTouch reduces layers of
touchscreen; our DiamondTouch will offer market’s
thinnest integrated sensor, and dispenses with cover
glass

Market forecasts suggest metal mesh and non-ITO will
grow from 5.5% of TAM growing to > 30% by 2019.*

Rapidly expanding design wins and pipeline of RFQs
demonstrate market acceptance by Tier 1 Tablet, NotePC
and 2:1 OEMs
* Source: IHS/Touch Display Research
4
UNXL: $5 Billion Addressable Market
ProCap and On-Cell Touch
Market Segments
 Mobile phone market (< 6”) is the largest touch
segment: $3.6 Billion in 2015.
 Tablet market (> 7”) is the 2nd largest touch segment:
$1.1 Billion in 2015.
 Notebook market (> 11”) estimated at $136 Million in
2015.
 Automotive market at 29 Million units in 2013
forecasted to grow to 60 Million units in 2018 or 15.8%
CAGR.*
 Metal Mesh is quickly taking share as the preferred
high quality sensor approach.
 Mobile phone using commodity sensors characterized
by low ASPs and GMs; metal mesh will emerge as
larger/curved displays scale.
$5B
$4B
$3B
$2B
$1B
$0B
2015F
2016F
2017F
Mobile Phone Tablet PC
Notebook PC
2019F
Automobile
Others
Source: IHS/DisplaySearch
* Source: IHS/DisplaySearch
2018F
5
XTouch Advantages
Flexible sensor material enables
innovative product designs
Copper-based mesh using
our patented design
~90% light transmission*
Thin borders: 1.5mm
or less
-For brighter display and thinner
stack height
Low Sheet Resistance (<10 Ω/sq.)
-For ease of Use by Finger or Stylus
-For reduced weight
Narrow Bond Area for FPC
compared to GFF
-For low cost and high reliability
-Integrated into our process
(* With anti-reflective coating or optical bonding)
6
Touch Module Configuration
XTouch Sensor with DiamondGuard replaces OCA
Fully Compatible with Industry Leading Controllers
Cover Lens
OCA
Diamond Guard coated XTouch Sensor
FPC / Controller
Air Gap or Direct Bond
LCD
7
Diamond Guard: Enabling Thinner and Lighter Devices
3.1 lbs.
0.61”
1.9 lbs.
0.7”
2.7 lbs.
0.76”
Dell Latitude 12” 7000
• OEMs targeting Glass cover lens to
achieve next level of weight
reduction
• DiamondTouch can reduce ~ ½
pound from a 15.6” touch panel by
eliminating glass cover lens
2.0 lbs.
0.5”
1.7 lbs.
0.4”
Thinner
Lenovo LaVie 13.3”
HP Spectre Pro 13.3”
MacBook 12”
Surface Pro 4 12”
Lighter
8
Future: Thinner, Lighter Sensor Stacks
Thin Cover Lens Support Using Diamond Guard
GFF
XTouch
XTouch
XTouch
DiamondTouch
Glass
Glass Cover Lens
Diamond Guard
Bottom Hardcoat
Plastic Cover Lens
Diamond Guard
Bottom Hardcoat
Diamond Guard Top and
Bottom Hardcoat
70µm
550µm
350µm
625µm
850-1000µm
Patented Sensor Design and Diamond Guard
Reduces Cover Lens Cost And Weight.
Enables production of thinner, lighter and faster devices.
9
XTouch Strategic Market Segments
High
Tablets
Segment
Attractiveness
Auto
Notebook PC /
PC Display
High
Priority
Future
Target
Markets
Smartphones
Wearable
Industrial
Appliances
Med
Med
High
Fit with XTouch
10
Customers and Targets
NotePC, Tablet, 2:1
Automotive
Handset
11
ITO-Alternative Technology Players
Metal Mesh Must Offer all Features
Advanced Features
Term / Description
Companies
Low Resistance
Better noise immunity and lower power
consumption
Double Sided
Avoids XY layer alignment Moiré Moiré
problems
< 5 μm Width
Resolves mesh visability problem
Copper Wiring
More durable as it avoids the silver metal
migration problem
Patented Metal Mesh Design
Reduces effective resistivity to enable thin cover lens, and
better touch and stylus performance
XTouch does not have the yellow tint of ITO, improving clarity of the display
XTouch soft copper enables curved designs compared with ITO non-flexible, brittle oxide
12
Product Technology Roadmap
Increasing our Technology Lead Over Others
Category
Display
Consumer Experience
Weight & Thickness
Touch Panel Cost
(“DiamondTouch”)
Feature
Benefit
1H’16
2H’16
High Pixel Density Support
(XTouch)
High-resolution displays
Available
Display Independence
(XTouch)
Simplified display SKU
management
Available
Passive Stylus Support
(XTouch)
Cheap, replaceable stylus
Available
Thin Cover Glass Support
(XTouch)
Thinner, lighter
Available
Plastic Cover Lens
(Diamond Guard)
Thinner, lighter
Available
Hard Coating
(Diamond Guard)
Eliminate anti-splinter film
Available
Integrated Lens
(Diamond Guard)
Eliminate cover lens
Integrated Flex
(XTouch)
Eliminate FPC
Available
Available
13
Momentum
•
21 DW in <1 year as a fully operational sales and manufacturing organization

Estimated DW revenue range for forward 12 mos H2 16 to 17 is $15 – 17M

Early success includes purchase orders from leading PC manufacturers such as
HP, Toshiba, and Dell for various touchscreen device programs, including:
 Tablets: 5
 2 in 1s: 9
 Laptops: 4
 POS Terminal: 1
 Other: 2
•
Pipeline includes a large number of Tier 1 and 2 electronics OEM/ODM
opportunities; typically sole or dual sourced
•
Also working with leading OEMs and ODMs for automobile and other
touchscreen panel opportunities
14
Growth Catalysts
 Market’s relentless pursuit for more responsive, thinner and lighter mobile devices
 XTouch metal mesh offers the best overall user experience and is the high end performance choice by OEMs.
 Patented sensor design allows 0.4 mm or thinner glass cover lens which is difficult for competition
 DiamondTouch technology for laptop computers has the thinnest stack, lowest cost, highest performance
with high barrier of entry for competition
 Future-ready
 Patented edgeless industrial design
 Ready for flexible displays
 Introduction of AAPL pencil and success of MSFT Surface enabling Stylus-based apps
 UniPixel is ahead of the curve. XTouch has the best active stylus (AAPL and MSFT) and also enables use of a
significantly lower-cost passive stylus ~ $2 (as opposed to $60-99 for active)
 High Integration
 Integrated FPC reduces cost and increases product reliability, simplifies supply chain and removes margin
stacking by providing sensor directly to display makers
 Expanding Capacitive Touch Market in Advanced Designs
 Laptops, Tablets, 2:1, automotive, eReaders, smartphones, peripherals, industrial, IOT devices
15
Management
Jeff Hawthorne
President and CEO
33+ years of senior management and advanced technology product development experience.
Sr. VP and GM – Veeco MOCVD Business
President and CEO – Photon Dynamics (acq’d by Orbotech)
Christine Russell
CFO
CFO of Vendavo (acq’d by Francisco Partners); EAG; Virage Logic (acq’d by Synopsys), OuterBay
Technologies (acq’d by HP), Ceva (Nasdaq: CEVA), Persistence Software, Cygnus Solutions
Director and Audit Committee Chair of QuickLogic Corporation (Nasdaq: QUIK)
Chairman of Silicon Valley Directors Exchange (SVDX)
Served as Director and Audit Committee Chair of Peak International
Jalil Shaikh
COO
VP / GM of Atmel
CEO Ranch Energy Systems; Validity Sensors (acq’d by Synaptics); and Zeevo (acq’d by Broadcom)
Senior management roles @ Broadcom (Nasdaq: BRCM); Silicon Image; Trident Microsystems
Brett Gaines
VP – Marketing
Director of Business Development of Touch Materials at Atmel
VP Strategic development, Silicon Image
Manager of Business Development, Sun Microsystems
Mark McCloud
VP – Sales
25+ years at HP in Emerging Technology, supply chain strategic procurement, and process development
engineering
16
P&L
($000)
Three Months Ended
Mar 31, 2015
7
Dec 31, 2015
890
Mar 31, 2016
850
Cost of revenues
7
4,208
4,250
Gross margin
-
(3,318)
(3,400)
Selling, general and administrative expenses
2,966
1,786
1,852
Research and development
2,723
1,120
927
(5,688)
(6,224)
(6,179)
4
(4,349)
(2,234)
(5,684)
(10,573)
(8,413)
-
5,000
-
Net income
(5,684)
(5,573)
(8,413)
Adjusted EBITDA
(3,194)
(4,357)
(4,420)
-
(2,086)
(2164)
Revenue
Operating income
Other income (expense), net
Net income from continuing operations
Discontinued operations
Non-GAAP Gross Margin
17
Balance Sheet – March 2016
($000)
Cash
4,825
Accounts payable
1,543
Account receivable, net
727
Accrued liabilities
676
Inventory
707
Short Term Debt
450
Derivative Liability
869
Prepaid licenses
Prepaid expenses
Total Current Assets
4,900
602
Total current liabilities
11,761
Royalty liability
948
584
Property and Equipment
1,708
Long term liabilities
Prepaid licenses, net of current
4,404
Total Liabilities
Other LT Assets
Total Assets
3,538
5,070
13
17,886
Total shareholders’ equity
12,816
Total
17,886
18
Cap Table & Use of Proceeds
Mar 31, 2016
Common stock
Outstanding options/restricted stock
WAEP
36,628
2,590
$6.29
Outstanding warrants
11,070
$1.59
Total capitalization
50,288

1.595 Million warrants exercised post Q1 for proceeds of $2.4M, resulting in outstanding
warrants now at 9.475M, 9.2M of which are at $1.50 and remainder at strike of $5.007.50/sh

Convertible Note of $15.5M retired February 2016. Company has no long-term debt
19
Thank You