Pryor-Hale Business Plan Competition April 18, 2001

Pryor-Hale Business Plan Competition

April 18, 2001

Michael McCorquodale, Chief Executive OfficerKeith Kraver, Chief Technical OfficerMobius Integrated Systems Corporation1001 E. Jefferson Ave.Suite 105Detroit, MI [email protected]

Presentation Agenda

• The Mission of Mobius Integrated Systems• Problems with Embedded Systems• The Mobius’ Solution• Management Team• Market• Competition• Funding and Financials• Why Invest in Mobius?

Agenda Mission Problems Solution Team Market Comp. Funding Why?

The Mission of MobiusMobius Integrated Systems Utilizes Microsystems Technology to Deliver True System-On-A-Chip (TSoC) Solutions to the Embedded Systems Market

The Engine Control Module (ECM) is an example of an embedded system:

Inside the engine a sensor detects the fuel-to-air ratio and transmits the signal to the ECM so the fuel injection can be adjusted accordingly

What is an embedded system?

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Problems with Implementation

What’s the problem? Packaging costs high Power too high Size too large Engineering

resources spent designing board Functionality low Applications limited

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Board Level Implementation

Antenna

Microprocessor WirelessInterface

Frequency Reference

Sensor/Actuator Interface

Sensor

Actuator

DataConversion

BasebandModem

The Mobius Solution

True System-on-a-Chip Implementation

(TSoC)

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Board Level Implementation

Antenna

Microprocessor WirelessInterface

Frequency Reference

Sensor/Actuator Interface

Sensor

Actuator

DataConversion

BasebandModem

The Mobius’ Solution

TSoC Implementation

Packaging costs reduced: Fewer Circuits Power reduced: Less Input/Output Size Reduced: Fewer Circuits, Fewer Pins Fewer Engineering Resources: Simpler System Increased Reliability: Longer Operating Life Possibilities for increased functionality Possibilities for new applications

The MS-8 prototype developed at The University of Michigan

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Realizing The Mobius’ SolutionHow is it Done? Utilizing emerging technology: MEMS Integrating existing technology: RF + Analog + Digital New application in existing technology: Si Wireless Support Emerging Standards: Bluetooth

Vision TSoC solutions require competency in all technologies Who will integrate these technologies? Si RF, SOI, MEMS, etc. No Intel of Microsystems Exists

Recognizing MEMS as an enabling technology: Prototype MEMS resonators developed at The University of Michigan

Agenda Mission Problems Solution Team Market Comp. Funding Why?

The Mobius Team: Founders

Michael McCorquodale–Chief Executive Officer

–Ph.D. Candidate: Wireless Integrated Circuit and MEMS Research

–Embedded Circuit Development with Hughes Space and Communications

Keith Kraver–Chief Technical Officer

–Ph.D. Candidate: Low-Power, Low-Voltage, Mixed-Signal IC Research

–Embedded Analog Circuit Development with National Semiconductor

Matt Guthaus–Chief Operations Officer

–Ph.D. Candidate: Low-Power Microarchitecture Research

–Automotive Microcontroller Development with National Semiconductor

Agenda Mission Problems Solution Team Market Comp. Funding Why?

The Mobius Team: Advisory Board

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Dr. Richard Brown–Chairman of Advisory Board

–Founder, Sensicore Corporation: A Chemical Sensor Company

–Associate Chair Electrical Engineering Division, University of Michigan

Joe Giachino–Member, Automotive Microsystems Specialist

–Technical Chairman, Michigan Microsystems Consortium

–Over 30 Years Experience in Automotive Microsystems, Ford/Visteon

Dr. Dennis Grimmard–Member, Semiconductor Manufacturing Specialist

–Manager, Solid-State Electronics Laboratory, University of Michigan

Market OverviewSystem-on-a-Chip (SoC) Market:

– Total Available Market: Currently $5 Billion– Projected to be $17 Billion by 2002 (Cahner’s InStat)– Currently SoC 30% of Integrated Circuit (IC) Market– Projected to be 70% of IC Market by 2003 (Semico Research)

Additional Markets– Scaling in Additional Markets: biomedical, environmental

monitoring, industrial, manufacturing, communications, etc.

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Automotive ECM Market: – Total Accessible Market: 15 Million Units per Year– Target Market: 100k ECMs in First Automobile Line– Automotive Market is Driving Microsystems and MEMS Industry: 60 Million

Units Deployed (ForbesASAP, April 2001)

Mobius vs. Competition

Shading indicates level of integration

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Company

MEMS: Sensing & Actuating Devices

Sensor & Actuator

InterfacesData Conversion Microcontroller

Frequency Reference

Baseband Modem

Bluetooth Interface

Analog Devices, Inc.

Motorola

Texas Instruments National Semiconductor

Broadcom

Sensicore*

Silicon Wave*

ISSYS* Cambridge Silicon Radio*

Mobius* ** **

Embedded System Components

*Denotes Start-Up Business

**Denotes In-Process Development, scheduled for integration Q2, 2002

Funding Sought

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Capital Sought– $3MM First Round to Initial Product Delivery

Expenditures– Development, Management, and Sales Teams– Office Space, Computer Hardware, CAD Tools– Design, Manufacturing, and Testing of Initial Product

Mobius FinancialsRevenue Projections(in thousands) 2001 2002 2003 2004 2005SoC Units Sold 0 243 1,562 4,567 14,168 Ave Selling Price $ - $17.94 $18.25 $15.51 $13.19 Net Revenues $ - $4,354 $28,514 $70,849 $186,807

COGS ProjectionsFabrication: Foundry $ - $ 111 $ 503 $1,268 $ 3,643Fabrication: MEMS 0 59 266 672 1,929Wafer Level Test 0 216 986 2,487 7,143Packaging 0 780 3,553 8,953 25,716 Post-Package Test 0 338 1,539 3,879 11,143 Initial Design Costs 0 374 1,496 3,366 8,789Total 0 1,879 $8,345 $20,627 $58,365

Gross Margin NA 57% 71% 71% 69%

Agenda Mission Problems Solution Team Market Comp. Funding Why?

(in thousands) 2001 2002 2003 2004 2005Revenues $ - $ 4,354 $ 28,514 $ 70,849 $186,807Gross Profit - 2,475 20,168 50,222 128,442 Oper. Income (900) (1,118) (864) 10,397 22,886 Net Income (900) (1,118) (864) 7,278 16,020 Cumm. Income (900) (2,018) (2,882) 4,396 20,416

Cash from Oper. (908) (1,169) (4,838) 5,331 9,530Capital Exp. 350 2,781 3,422 7,793 16,813Funding Needs 3,000 5,000 16,000 - - Ending Cash 1,792 2,841 10,582 8,119 837

Mobius Financials

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Why Invest in Mobius?

Reasons to Invest in Mobius Strong, Scalable, Needed Technology with

Significant Added Value Motivated, Experienced, Talented Team Tremendously Expanding Market Applications in Broad Spectrum of Markets Opportunity to Capitalize on Emerging Applications

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Agenda Mission Problems Solution Team Market Comp. Funding Why?

Current Strategy Full Business Plan just Completed Prototypes Developed, Manufactured, and Tested Seeking Start-Up Capital From Angel Investors and

Venture Capitalists Looking to Fill Gaps: Management and Partnerships Developing Specification for Initial Product Offerings R&D underway for Bluetooth Enabled ECM

Why Invest in Mobius?