muv - executive summary1

7/28/2019 MUV - Executive Summary1

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Company Overview

www.my-muv.com

May 2013

MUV Ltd. Is planning to raise equity financing, necessary in order to: i) complete development of its firstproduct , ii) Develop the company's IP, iii) launch product to market, iv) advance business development

relations with key industry players, and v) strengthen balance sheet position

All rights reserved. The information contained in this document and in the appendices thereto isconfidential, proprietary and trade secret. Provision of this information should not be construed as alicense or permission to use the information. Without prior written approval from MUV Ltd., no part of thisdocument or of the appendices thereto may be reproduced or transmitted in any form or by any means,including but not limited to electronic, mechanical, photocopying or recorded or stored in any retrievalsystem of whatever nature. This document has been prepared for evaluation and investment purposesonly.


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COMPANY OVERVIEW

MUV, Ltd., a privately-held technology company based in Herzliya, Israel, designs and develops state-of-the-art unified solutions for human interaction with multiple screens and media sources. This uniquesolution integrates touch, remote gestures, mouse functionality and voice interaction into a single

converged system.MUV has developed fully functional prototypes, submitted patent applications, established relations withseveral strategic partners and is now starting Industrial Design of its first product.

MUVs technology combines a small finger attached device and a sensor into an innovative interactionsolution. The user can interact with displayed images through physical touching of the display area, orhover interaction with mouse or stylus like sensitivity. Further interaction includes remote gestures, virtualremote touch and voice control from anywhere in the room.

The MUV solution offers superior user experience comprising natural interactivity and multitouchcapabilities. Furthermore, it does not require special expensive cameras, screens or specific projectionequipment. It works with any existing off-the-shelf projection devices and display surfaces. MUV's uniquesoftware processes the input of a standard low-cost IR camera to generate rich interactive functionality for

any user. MUV started its operations in 2010 at the founders basement, and raised initial $150K seedfunding. It currently has 4 employees CEO, CTO, VP R&D and VP BizDev.MUV developed a working product prototype showcasing the proof of concept and demonstrating theuser experience for several use cases such as presentation environments, SmartTV, smart living roomsand more. MUV has just taken office space in Herzliya, Israel.

Interaction with Displayed ContentFor more than three decades the traditional interaction method with displayed content has been handledvia the common mouse and keyboard. Recently new technologies emerged: Touch Screens whichimproved interaction with smartphones, and Remote Gesture solutions that improved gaming niches.Neither methods are able to answer the many needs with the booming Smart TV products, interactive useof projected content and a wide variety of Commercial ,Educational and professional use cases.

The MarketWith over 50 million units of installed base, the projector market is seeking for new revenue traction andgrowth engines. The immense penetration (30% annual growth) of interactive displays in Business andEducation are examples of such growth opportunities. In addition, the Smart TV market is expected tosurpass 150 million units by the end of 2013 but Smart TV functionality is still rarely used due tocomplexity and un-natural interaction methods. MUVs solution is uniquely positioned to provide themissing link to those markets.

MUV Technology OfferingMUVs Interactive Technology suggests a new paradigm of Human-Computer-Interaction. it offersunparalleled user experience (e.g. versatility, responsiveness, accuracy and ease of use) which isapplicable to any kind of display without the need to adapt the content to the variety of control methods(as with e.g. gesture solutions). Its primary benefits are:

Creates a new revenue product extension for electronics companies (such as Projector,Smart TV vendors and personal devices manufacturers)

Provides higher productivity tools for business and institutional users (such as Boardroom,Conference room and Classroom)

Enhances consumer media experience while blending well within the established base ofconsumer and business display products


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The Companys unique product has already received strong positive response from key players in thevarious industries such as Haier, Hisense and LG in TVs, BenQ in projectors, Technion in Education andChannel 2 News in Broadcasting. The Company plans to use the proceeds from the capital raise to fundits initial product release expected by Q42013. Additionally, funding will be used to continue developmentof MUVs technology platform, strengthen its balance sheet in terms of manufacturer commitments andassist the Company in building-out its sales, marketing and supply chain management teams. During2Q2014, the Company will begin receiving orders for both the aftermarket and embedded products on adirect OEM channel basis and indirect licensing model with Shipments slated for 3Q2014.Financial below presents an outline of MUVs projected revenues.

Profit & Loss Proforma

all amounts are in $ '000 Y1 Y2 Y3 Y4 Y5

Revenues $0 $825 $4,206 $10,424 $20,220

COGS (*) $0 $28 $13 $8 $6

Expenses $660 $907 $2,264 $5,342 $7,119

Operational Profit ($660) ($82) $1,942 $5,082 $13,101

Cumulative Profit ($660) ($741) $1,201 $6,283 $19,384

General Indicators

Headcount 4 9 19 27 35

Total MUV Unit Sales 0 55,000 323,000 1,303,000 3,370,000

Unit BOM cost $0 $25 $10 $8 $6

Consumer Price (Projector unit) $0 $150 $110 $80 $50

(*) note: Y3 and forward - Revenue figure = GrossProfit


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INVESTMENT HIGHLIGHTSTouch and Gesture interfaces are changing the face of displays:Touch has changed the display world. Every display environment is now rapidly moving to add touchinterfaces. With the introduction of Windows 8, the PC environment is becoming also touch based.

With this form of Human Machine Interaction becominga common place there still remains a huge gap in theprojected display space as well as providing virtualremote touch interfaces to touch and non-touch flatpanel displays.

The operating systems and the content are quicklybecoming touch aware or touch enabled, however manyof the physical environments do not support touch andare eager for a different solution.

The Commercial, Institutional and Consumer display

segments for large (over 40) flat panel or projecteddisplays are looking for a solution embedded and aftermarket, that can provide this type of interactivity. MUVhas immense promise as a completely new solution to acurrent need.

MUV Redefining the human display interaction metaphor Youre Touching It!!!: With its functioning and commercialization-ready prototype, MUV brings Human and Display Interactivesolutions to a whole new level and is immediately lends itself to commercial and institutional applications.Its aftermarket and embedded products enable an interactive viewing experience for every projector andflat panel display in the market with minimal adaptation of interaction metaphor or content.MUVs Two Part solution of Thimble and Sensor enables both close-up touch and hover interaction withmouse or stylus-like sensitivity as well as remove gesture and virtual touch interactivity from anywhere inthe boardroom/classroom/conference-room/living-room.

Pushing the Envelope of interactivity into a $1B+ Market Opportunity:Todays lifestyle demands versatile and flexible solutionthat enables control and interaction with many types ofrich media content from games and TV to presentationstutorials and web across multiple environments. A recentreport by MRG (Multimedia Research Group) regardingthe Smart TV market indicates that the number of globalSmart TVs will reach above 150 million in 2013 with acompound annual growth rate of 31%. A similar report byDisplaySearch predicts that China alone will have closeto 30 million connected TVs in 2014, with that number

accounting for 50% of the TVs sold. Insight Mediaresearch group predicts that the traditional globalprojector market will surpass 10M units sold this yearwhich translates to a relevant installed base of over 50Mprojectors. In addition, the interactive projectors segmentshowed a staggering 30% annual growth in 2012 where industry estimation shows that nearly 15% ofprojectors being sold world wide are interactive projectors and not the traditional passive one.


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MUV can be embedded in new projectors and smart TVs or can be sold as an aftermarket product to theover 50 million projectors in use worldwide.

Insight Media also predicts that theInstitutional segment willexperience the strongest growthmainly being driven by projectors ineducation.

In another study, Insight Mediapredicts that the Pico-projectormarket although currently verysmall will increase to over 20Munits in 2016 due to performanceand cost improvements.

In each of these cases MUV will transformthe user experience to a remote-touch-

mouse-voice experience and dramaticallyincrease usability and productivity in thoseenvironments.

Highly Defensible Technology Patent Families:The Company has patented multidisciplinary technologies that cover the overall system architecture aswell as unique algorithms for current and future implementations.MUV's 180 pages PCT Application holds the International filing date of 23 February 2011 (23.02.2011).The company is managing its IP process with Israel's top patent attorney - REINHOLD COHEN &PARTNERS.The application comprises of 97 claims aggregated by subject, all carefully phrased using proper retreatlines to cover the entire technological spectrum needed to enable the full system.The PCT application will enter its national phase before 23 August 2013 (23.08.2013) where MUV willappend the additional technology and know-how that was accumulated till then. Moreover, because of themultidisciplinary nature of the application, it is noted that MUV will be asked to split its current applicationinto at least 3 different patents covering different methods and technologies, all carrying the same prior

date of 23 February 2011.

MUVs proprietary and patented system technologies integrate Hardware and Software disciplines as wellas RF communication, coded geometrical optic sources, speakers, microphone, force sensing andcapacitive sensing into a complex yet miniature system. This diverse multi-disciplinary product allows formany areas of innovation through the product life cycle to maintain the companys and the productscompetitive advantage. This reiterates MUVs expertise, technological foresight and in-depthunderstanding of the Natural Human Interface industry.


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The technological highlights are as follows:

1. Sensing capability, including a 2d camera covered with a narrow optical reception filter reacting towavelengths of 940nm (with ~40nm deviation), supporting 1024X768 pixel detection at 24MHzmodulation frequency.

2. Movement detection utilizing embedded algorithms within the sensor effectively analyzing multiplemodulated optic sources using unique geometrical breakdown techniques to understand the user'sexact location, orientation and movement in 3D space.

3. Invention of a new paradigm for content interaction, including comprehensive design anddevelopment of a smart finger attach device supporting several parallel input streams such as definition of Multicast / Broadcast high speed bi-directional wireless communication over 2.4GHzfrequencies ; Encapsulating and coordinating multiple micro IR-laser drivers emitting modulatedsignals detected by reflective image processing algorithms; informing the system with the most gentlehand movements in 3D space using advanced force sensing and capacitive sensing technologies

4. Voice activated software engine that communicates with an embedded microphone within the abovementioned input device to support vocal commands with high profile background noise filteringincluding cross talking and host self-speakers (e.g. Smart TV)

5. Human interface software package (acts as a mediator between the user and the controlled device),simultaneously analyzing and funneling all input streams into continues iterative threads to processparallel events in respect to past accumulated knowledge base. After concluding the requested

commands, the software package communicates with the controlled media device to instantly reflectthe user's actions, all accumulate to less than 3ms round trip from the user side.

6. A close attention in respect to IP was given to future technologies being developed by MUV. Primaryexample includes a servo-based smart projection unit, capable of projecting multiple interactivescreens on passive real-life surfaces. This dynamic projection system also includes speakers,microphone, Wi-Fi and webcam to support all interactive domains, while MUV's finger attach deviceutilize its interactive arsenal to effectively control and manage all different applications.

Unique Modular-Architecture Platform Incorporates Multiple Use Case Innovations:MUV has developed a unique interactive architecture, which incorporates and welds together multipleinnovations such as simultaneous remote and touch interaction, location independent command andcontrol, voice operated interface and virtual conversion of any available surface to touch base.

The modular design creates competitive advantages in terms of flexible design architecture, customizedOEM product integration, manufacturing economies and component sourcing. MUVs product is designedto accommodate either an embedded or and aftermarket solution, thus expanding the target markets toboth new sold devices and the already huge installed base.

Scalable Business Model:The Companys manufacturing business model and its planed partnerships with OEMs create a scalablebusiness opportunity. Management plans to leverage channel relationships to avoid building out a largein-house sales and marketing team and avoid in house inventory as possible. MUVs modular IP platformallows the Companys design teams to swap various key components to build new applications foradditional product extensions. As unit volumes increase, MUV will negotiate larger purchase discountsfrom its suppliers. As its architecture supports both embedded and aftermarket application it can bemarketed through OEMs retail channels as well as direct web sales, therefore allowing the company

flexibility and quick response to changing business environments and different sale cycles.

Dynamic Go-To-Market Strategy:Management is focusing its solution initially on two primary markets: Presentation and Smart TV, followedby few secondary applications to be approached by MUV through 3

rdparties, seeking to secure formal

relationships with the leading players in these markets. The Company is in the process of securingpartnerships with projection, display and Smart TV companies, and has also begun discussions withvarious companies in vertical markets applications.Management also plans to sell its products directly to Consumers online, followed by direct sales to OEMcustomers as well as through an indirect licensing model. The Companys go-to-market strategy is to


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supply its aftermarket and embedded solutions to commercial institutional and consumer productcompanies and OEM customers, who in turn will incorporate the solution as an accessory to their productlines and/or embed MUVs solution into a variety of other applications. MUV believes this distributionstrategy will maintain capital efficiency. At a later stage, the Company intends to pursue opportunities inSmart TV and other commercial industries for specific applications, i.e. in broadcasting and command &control centers. The Company has a fully-working demonstration, which is slated for initialcommercialization in Q42014.

Potential Acquisition Target:MUVs proprietary technology platform can be utilized across numerous industries. The aftermarket andembedded product line, coupled with strong OEM relationships, position the Company for acquisitionswith a host of electronic companies such as TV Manufacturers like LG and Samsung, Projectorsmanufacturers like Epson and BenQ, Peripheral device manufacturers like Logitech and Belkin, and manyothers.

Young Management Team Supported by Industry Veterans with Successful Track Record:MUVs young entrepreneurial management team is supported by technology experts and veteranexecutives with successful track records.

Rami Parham, MUVs founder and CEO is an expert at the interactive technologies arena and has years

of experience in software design and development. Rami holds a B.Sc. with honors in industrialengineering from the Technion Israel's institute of technology, and was most recently the manager anddeveloper of the inter-organizational data systems at Systematics, Inc.

Robert Parham, MUVs co-founder and CTO was an Officer in the IDFs main technological unit, indiverse roles ranging from project management to twice commanding the IDFs top computer course ARAM. Robert is a laureate of the Head of Intelligence Award for Creative Thinking and has earned aB.Sc. and M.Sc. in Computer Science from the Technion as a member of the Technions elite excellenceprogram, as well as an MBA from the University of Tel-Aviv. As a project manager with Microsoft, Robertoversaw the development process of one of Microsofts core security products. Later, as a ProductManager with IBM, Robert was part of the core corporate marketing team for a $600M B2B product.

Jonatan Ary, MUV's co-founder and VP R&D has more than 10 years of experience as a developer,

team leader and system architect, dealing with diverse platforms including web, mobile applications,systems integration, social platforms and more, especially excelling with creating the most innovative userexperience in all of the above. Jonatan holds a B.A in Computer Science from the Interdisciplinary Centerand was most recently the CTO of Moblin.

Daniel Star - Over 25 years experience in global business, including technology ventures in Europe, USand Latin America. Former investment manager at Intel Capital in Israel and Europe, responsible forcompany building as part of the Intel Innovation Center Seed Fund.


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THE PRODUCT FULL INTERACTIVE SUIT

Revolutionizing the field of interactive displays, MUV has created a highly technical solution thatimmediately meets the needs of professionals educators and consumers behavior. The Company hasdeveloped a highly scalable platform that offers technology with several critical product factors required

by both OEM customers and consumers:

MUV presents an innovative approach for today's products, technologies and needs to include:

Multi manner control Touch, Hover, Gestures, Mouse functionality, Virtual Stylus, VoiceInteraction - all together. It controls all of the above from a remote distance away from the screen,or it can turn the screen (even wall sized projected screens) into an interactive touch screenutilizing finger touch control method.

Multi Device Controls more than 1 environment concurrently (people are using more and morescreens simultaneously). Its encompassing human interface device can control projectedscreens, Smart TV, desktop/laptop computers, tablets, smartphones, media centers, etc. MUV'sproduct functionality is not dedicated to a specific environment and is therefore not restricted toany single device.

Multi User Enabling more than 1 person to interact with the screen. Usually referred to as'Social Interaction', MUV enables many users to interact with the same platform whiledistinguishing between different users in space and reacting individually according to their actionsand input streams.

Usability: MUV features a personal un-intrusive device with an ergonomic design and is superblyintuitive by design no learning period required.

Fast ROI and Significant Lower Total Cost of Ownership:MUV is designed as a massproduction consumer electronic device, targeting end user price in the range of a regular mouse.

The product was designed from the ground up for multi-manner, multi-user, multi-device usability and cantherefore be easily extended to future applications and evolve into a personal interaction focal point foreveryday use. MUVs modular architecture allows the development and improvement of theseincreasingly customizable, smaller, and more competitive products. MUV has completed designs and

created working prototypes of the interactive platform.

After Market Product

MUV's aftermarket solution targets the presentation market. It is a projection accessory tailored as astandalone interactive solution, connected through a wireless connection to separate projectors andcomputers. Comprises of a small finger attach device, a standalone IR Sensor and a software suite thatruns on the host computer. MUVs product supports the full installed base of projectors and computers inthe field either via direct USB power connection or a separate USB power source as well as Bluetoothcommunication. Installation process is exceptionally easy and comprises of the following steps:

1. Mount a small sensor on top of the projector and connect it to a USB slot for power2. Insert a USB dongle to the PC (or any other supported host)3. Touch 4 points on the screen as a one-time calibration process


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Embedded Product

MUV's second product is designed for embedded application and is targeted for embedding in projectorsand later on in other media devices such as Smart TVs. It comprises of the same thimbles and softwarepackage, combined with the same IR sensor as an embedded module within the projector. In this casethe Installation process reduced to turning the projector ON and start working.

Whether with the aftermarket or embedded products, MUVs interactive technology deliver the followingbenefits to each and every presentation scenario taking place:

The projected surface acts like a touch screen with tablet like multi touch abilities The user can use its built in stylus for ultra-precise tasks like writing or drawing just as if he was

holding a regular pen Support all screen sizes Unique hover mechanism enables to touch the screen without touching it while hovering a few inches

above it The user can point the screen and control it from any point in the room, supporting 6 Degree of

freedom with 180 degree of vision, up to 15 meters (in current version) The system provides the presenter with complete mouse-like functionality including cursor control and

clicking The user can touch the screen remotely with both multi touch and gesture recognition support Depth sensing mechanism enables real time interaction with 3D content Embedded voice recognition engine support voice commands from any distance The system supports interaction with multiple users and multiple screens concurrently


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TECHNOLOGY & INTELLECTUAL PROPERTY

The Company has patented multidisciplinary technologies that cover the overall system architecture aswell as unique algorithms for current and future implementations.MUV's 180 pages PCT Application holds the International filing date of 23 February 2011 (23.02.2011).

The company is managing its IP process with Israel's top patent attorney - REINHOLD COHEN &PARTNERS.The application comprises of 97 claims aggregated by subject, all carefully phrased using proper retreatlines to cover the entire technological spectrum needed to enable the full system.The PCT application will enter its national phase before 23 August 2013 (23.08.2013) where MUV willappend the additional technology and know-how that was accumulated till then. Moreover, because of themultidisciplinary nature of the application, it is noted that MUV will be asked to split its current applicationinto at least 3 different patents covering different methods and technologies, all carrying the same priordate of 23 February 2011.

MUVs proprietary and patented system technologies integrate Hardware and Software disciplines as wellas RF communication, coded geometrical optic sources, speakers, microphone, force sensing andcapacitive sensing into a complex yet miniature system. This diverse multi-disciplinary product allows for

many areas of innovation through the product life cycle to maintain the companys and the productscompetitive advantage. This reiterates MUVs expertise, technological foresight and in-depthunderstanding of the Natural Human Interface industry.

Key Technology factors for the product architecture include providing a range of location independentmulti-touch solutions at affordable costs, while its intuitive user interface creates a second to none userexperience:

1. Sensing capability, including a 2d camera covered with a narrow optical reception filter reacting towavelengths of 940nm (with ~40nm deviation), supporting 1024X768 pixel detection at 24MHzmodulation frequency.

2. Movement detection utilizing embedded algorithms within the sensor effectively analyzing multiplemodulated optic sources using unique geometrical breakdown techniques to understand the user'sexact location, orientation and movement in 3D space.

3. Invention of a new paradigm for content interaction, including comprehensive design anddevelopment of a smart finger attach device supporting several parallel input streams such as definition of Multicast / Broadcast high speed bi-directional wireless communication over 2.4GHzfrequencies ; Encapsulating and coordinating multiple micro IR-laser drivers emitting modulatedsignals detected by reflective image processing algorithms; informing the system with the most gentlehand movements in 3D space using advanced force sensing and capacitive sensing technologies

4. Voice activated software engine that communicates with an embedded microphone within the abovementioned input device to support vocal commands with high profile background noise filteringincluding cross talking and host self-speakers (e.g. Smart TV)

5. Human interface software package (acts as a mediator between the user and the controlled device),simultaneously analyzing and funneling all input streams into continues iterative threads to processparallel events in respect to past accumulated knowledge base. After concluding the requestedcommands, the software package communicates with the controlled media device to instantly reflect

the user's actions, all accumulate to less than 3ms round trip from the user side.6. A close attention in respect to IP was given to future technologies being developed by MUV. Primary

example includes a servo-based smart projection unit, capable of projecting multiple interactivescreens on passive real-life surfaces. This dynamic projection system also includes speakers,microphone, Wi-Fi and webcam to support all interactive domains, while MUV's finger attach deviceutilize its interactive arsenal to effectively control and manage all different applications.

The Companys competitive position is dependent upon its ability to protect its proprietary methods andtechnology, and its ability to rapidly exploit its innovations. To date, MUV has filed 1 PCT Application


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covering its hardware, software, concept design and interpretation methods. These patents are in the soleownership of the company. The company intends to file patents in all relevant countries (USA, Europe,Japan, etc.) until 4Q 2013. MUV believes that in the course of development its future technologies morepatentable ideas will emerge due to the skills of its creative development team.

MUV's employees and consultants generally enter into agreements that contain provisions with respect toconfidentiality and the assignment of rights to inventions made by them while in MUV's employment.Agreements with consultants generally provide that rights to inventions made by them, while consultingfor MUV, will be assigned to MUV. Agreements with employees, consultants and collaborators containprovisions intended to further protect the confidentiality of MUV's proprietary information.

R&D Plan:

The company has developed a working Alpha product with multiple embedded functions including bothhardware and software elements. MUV's finger attach device is fully functional controlling both projectedand physical screens of any kind. The software currently supports Windows based computers withseveral communication modules for other operation systems such as iOS and Android.

The R&D plan can be roughly divided into hardware and software development. Given the solutionsextreme versatility, hardware development is mostly decoupled from software development as therequired software is dependent on the target market segments, whereas the hardware development is for

general purpose. Highlights of the R&D plan are as follows:

Hardware: The main task of the hardware development is to industrialize MUV's finger attached deviceand integrate its various features into an ergonomic un-intrusive design. The hardware developmentprocess will be divided into 5 development threads working in parallel.

a. Electronics chip design enhancements, energy efficiency, wireless communicationsprotocols

b. Optics lasers collimation to create the desired geometrical patterns, light sourcesmodulation, CCD camera optic properties enhancements

c. Firmware all embedded software including signal processing and compression for thesensor and for the finger sleeve

d. Industrial Design materials, packaging, appearance, usability testse. Productization standardization approval (FCC, CE, EMC, Eye safety), preparation of

production plans, BOMs, blue-prints, testing and overall integration

Software: Software should be finalized and tested to fit the end user customs and habits and to supportall major operation system, namely windows, MacOS, iOS and android. Software development will takeplace from day 1 parallel to hardware development. There are roughly 4 major modules underdevelopment:

a. Communications This module communicates using RF protocols with the finger device toreceive and transmit discrete event notifications. It also implements BT communication withthe sensor to receive location and modulation inputs

b. Optics and processing This module decodes and translates the geometrical optic input withrespect to the integrated wireless communication stream, process the raw input according tothe pre-defined algorithms and creates meaningful events for the UI module

c. UI The UI module manages the interaction between the user and the host, namely a Smart

TV, Mobile phone, Computer or a Projector with processing ability. This module might bedesigned, built and tested in full cooperation with the host manufacturer to fit the needs,methods and applications of the controlled environment.

d. Manager The manager module is the aggregator of the entire system orchestrating theexecution of the different processes.


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Product & Road Map:System is comprised of 3 critical elements:

Finger device - MUV has finalized its 1st

and 2nd

generations of its finger device with a fullyfunctional prototype and plans to develop its 3

rdgeneration as a commercialized production ready

product until the end of 2013. Sensor- MUV has finalized its 1

stgeneration of its optic sensor and plans to develop its 2

nd

generation as a commercialized production ready product until the end of 2013.

Software package - MUV has established a fully operated software package for both theembedded side and PC side and plans to finalize it into a user oriented version with full supportfor several main operation systems.

MUV has successfully completed several demos and beta tests with potential customers and is pursingthe following roadmap and go-to-market strategy towards its final product and first revenue stream:

M1: Electronic and optic input aggregation in regards to final components physical attributes(size, volume, assembly etc.) as inputs for the Industrial Design phase

M1-M2: Industrial design for the 2nd generation optic sensor including size reduction, projector'smounting solution, appearance etc.

M1-M3: Industrial design for the 3rd generation finger device including materials, packaging,appearance, usability tests etc.

M2-M4: Electronic and optic development of the IR sensor in regards to BOM reduction and

performance resulting with final hardware spec and blue prints M2-M5: Electronic and optic development of the finger device in regards to BOM reduction and

performance resulting with final hardware spec and blue prints M4-M5: Critical standardization approval and pre-integration testing of all elements

M1: Software interface and protocol definition for all 3 elements (PC, finger device, IR sensor) M2-M4: Embedded algorithms of the IR sensor for geometrical patterns translation based on

known physical properties of the CCD camera M2-M4: Embedded firmware of the finger device according to known protocol definition with the

IR sensor M2-M5: Driver and user side development for PC based platform resulting with final control panel

functionality, appearance and usability definition

M5-M6: System Integration and testing together with selective supportive customers (off-site) M5-M7: Establishing 2-3 proven use cases (i.e. Education software package, Corporate aimed

utilities, SmartTV operation program) based on customer's continues feedback M7-M9: Series A production (in Israel) of first 500 units

M7-M10: In-site pilots with major customers from sampling markets M7-M10: End users focus groups M7-M10: Shows and exhibitions participation M7-M10: Demonstration of capabilities for strategiccompanies while seeking partnerships and

cooperation.

M11-M12: Fine tuning and conclusion implementation of both hardware and software side

resulting with final production ready version of the MUV package. M12-M16: launch go-to-market strategy & mass volume PO harvesting M12-M16: Manufacturing in production volume using 3

rdparty affiliates (i.e. SEA, Latin America)

M16: Shipping the MUV product according to PO stream


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INDUSTRY OVERVIEW

Presentation Environments

Dynamic presentation practices have not changed much since the introduction of Power Point and its

slides navigation remotes. The dramatic changes of using on-line web content and the touch and multi-touch interaction methods have not been able to find their way to the presentation environment. As aresult, the presenter's interactive abilities are limited to either laptop control, wireless mouse or touchsensitive interactive whiteboard.The limitations of these interaction methods put significant burden to the presentation flow:

Sitting behind a laptop computer keeps the presenter away from his audience. Holding a wireless mouse provides a very limited control over the presentation content. Interactive whiteboards and interactive projectors offer no remote interaction at all and force the

presenter to stay near the screen. Moreover, they are limited in size, highly expensive, requirecostly installation and replacement of the existing projector in case there is already one installed.

MUV technology can be either embedded into new projectors or can be sold as an aftermarket product.Aftermarket product can serve the install base of over 50 million projectors used worldwide, transformingeach and every one of them into a "wall-sized tablet", including the full interaction functionality of a tabletscreen, together with complete remote interaction, enabling the presenter to point the screen and controlit in 3D space, write and tap on it as if he was holding a stylus, or even click & scroll with his finger as ifhe was holding a regular mouse.

Corporate & Boardrooms Applications

The touch revolution has successfully penetrated corporations. However, boardrooms were left behind,as they are thoroughly wired. Moreover, budget constraints keep them from relying on keyboard andmouse. Some boardrooms have indeed transitioned to touch enabled Flat Panel Displays - a solution thatis highly expensive and limits display size when compared to projected displays. MUV can bring the touchrevolution to corporate boardrooms for a low cost and very simple installation and it can transformpresentations to enable interactivity and drive better brainstorming and sharing of ideas. MUV is indeedthe most cost effective solution for the large install base of projectors in the boardroom environmentworldwide.


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Educational institutes

Projectors and Whiteboards are arriving at the educational market in a rapidly growing rate, becoming thefastest growing segments of these two separate product categories. Futuresource indicates a yearlyvalue of US$1 Billion in global sales of interactive whiteboards. "With global classroom penetration sittingat just 7%, these numbers only represent the tip of the market potential iceberg," says Colin Messenger,senior consultant at Futuresource. MUV holds a unique proposition for this emerging and fast growing

market. Its Whiteboard solution comprising hands-free-stylus interaction, hovering mechanism thatdemands no physical touch, combined with the remote multi touch capabilities, applicable on front andrear projection as well, all can create a cost effective unique solution that will accelerate the penetration ofthe interactive whiteboard even beyond its current educational framework.

Large Venue Presentations

Mouse and Keyboard provide some means of interactivity in boardroom as inconvenient as they might be.So are large touch-enabled Flat Panel Displays, with their price and size limitations. Pen operatedinteractive projectors can be used in classrooms and ease the gap a little bit for this market. However, inlarge venues, all these forms of interaction completely fail. Whiteboards and large Flat Panel Displays donot exist in those gigantic form factors while only standard front projectors can be useful for generation ofsuch a large display. MUVs ability to support both touch and remote interaction with any screen size isparamount, as many of these screens cannot be physically reached to generate touch.

Smart TV & living room environment

Today's living rooms are undergoing a revolution. TVs have mutated from display-only devices into smartTVs that enable the user to display a variety of content, such as web, video streaming, gaming, socialnetworking and much more. All these services need to be controlled by the user with a unified, easy touse, single solution. It is obvious that the standard remote control or the bulky mouse and keyboard arenot suitable to control such a diversity of content in the living room environment.

Current attempts of solving this problem utilize either a remote pointing device or a gesture basedsolution. These solutions are extremely limited in functionality. The remote needs to be continuously held(sometimes for hours). It contains an array of buttons and usually uses Gyro/Pad technology whichprovides uncomfortable interaction and limited functionalit. The gesture solutions using 3D imaging are


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expensive and hard to embed while the 2d imaging offers very restricted interaction. Both 2D and 3Dsupport short distances and require a complete redesign of the user experience as well as the contentitself to enable basic control.

MUV's integrated approach empowers the user with the most precise mid-air control up to 15 meters,complete remote- and mouse functionality for traditional content and habits, and full support of voicecommands as a future interactive commodity for Smart TV environment. MUV allows all this whileproviding the same experience the user is accustomed to, without a redesign the content or the methodof interaction. The system is very easy to embed and the user can simply point to the screen and controlany kind of content with no learning curves and adoption periods.

The latest report by MRG (Multimedia Research Group) regarding the Smart TV market indicates that thenumber of global Smart TVs will reach above 150 million in 2013 with a compound annual growth rate of

31%, making it an attractive segment to pursue.

Vertical Applications - Broadcasting studios, Command & Control centers

Command & Control centers have always faced the challenge of dealing with massive data flow using acomplex array of screens, users and input devices. By leveraging MUV's many-to-many communicationmethod, it enables a single user to control multiple displays from a static viewpoint in space. It alsoallows multiple users to control a single display from different locations in the room. The company can

establish a unified, tailor made solution for Command & Control centers that will set interactiveredundancy and inefficient workflow to zero.When looked closely, Broadcasting studios are in fact giving presentation to millions of people every day.After a successful pilot with one of the major national news broadcasting firms in Israel, the companydemonstrated how it can transform a passive studio into a fully interactive environment within a fewhours. With tens of thousands of TV broadcasting studios worldwide, this professional market segmentcan embrace MUV's capabilities, reaching virtually each and every potential customer in the planet on adaily basis

.


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COMPETITIVE LANDSCAPE

MUVs pioneering technology offers significant advantages over todays interactive experience. Followedis MUV's competitive positioning for the company's first primary markets - Educational, Institutional andProjectors related applications.

When dealing with projected and presentational content, the presenter's interactive abilities are alwayslimited to 1 out of 3 product categories:

1. Static control The awkward old-fashion method of sitting behind a Laptop / PC while presenting. Sittingbehind a laptop computer keeps the presenter away from his audience and thats the exact situation theindustry is trying to solve.

2. Wireless remote controller Solutions like Logitech's air mouse, power point remote controllers forslides navigation and other (mostly gyro based). Holding a remote controller or a wireless mouse offersremote interaction with a very limited control of the presented content, namely the traditional power pointpresentation. In addition, the user is forced to hold something during the entire session which makes ituncomfortable to use both his hands to freely express himself or hold other things. Prices may vary

between $50 and $250

3. Interactive projectors1

Overview:There is a clear demand for interactivity with projected display systems in order to create new way ofsharing information with audience. To answer this demand major projectors companies started to developinteractive projecto+rs (most of them are based on a TI reference design and show the samefunctionality). This technology started to appear in the market around 2 years ago. Price range of theseprojectors is between $1200 and $2600, and it is being marketed mainly by InFocus, BenQ and Epson.Non Interactive projectors with the same capabilities cost between $200 and $500. There is anothercategory of semi-interactive projectors which has a 'presentation remote control' that can navigate thruslides back and forward, we won't survey those solutions.

Solutions for touch-like surfaces with projected content utilize either capacitive boards or IR frames, whileboth of them offer no remote / hover interaction at all and get highly expensive for large screens.Capacitive boards and IR frames also need to be transported and installed at the customer's site byprofessional workers. In addition, all of the above suffer from their 'limited active physical size', meaningthe user can't touch something above his height, while MUV enables the user to 'hover' and touch thescreen 20 ft. above his hands reach. IR frames price may vary between $1,000 and $5,000 for commonsizes.

Implementation Architectures:The target is to implement both Touch functionalityas well as Remote interaction with good capabilitiessuch as precision, distance and natural cognitive response.

1. First method (being used by Epson with their BrightLink series) consists of an IR sensor

embedded in the projector facing the screen, combined with an IR pen to achieve touchfunctionality with the projected screen. In this method, there is no remote interaction at all whilethe touch interaction is very accurate (same as MUV).

2. Second method (being used by InFocus, BenQ, Dell and others) utilizes a static IR grid that isbeing emitted from the projector onto the screen, while an IR camera mounted on the tip of thepen captures the IR grid to conclude the pointing direction of the user. This method offers remoteinteraction, however it poorly supports touch interaction with the screen. There is a crucialdifference between the abovementioned remote architecture and MUV's technology:

1and touch-like surface solutions, namely capacitive boards and IR frames


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a. With MUV the IR grid being emitted from the finger device is fully dynamic, while thecamera is mounted on the projector and translates the geometric patterns it sees into theprecise location of the user in 3D space (absolute input).

b. The above IR grid being emitted from the projector is static and 100% fixed to the screenwhile the camera is mounted on the pen device and uses the grid as a reference to theuser's motion in 2D space (Relative input)

Compared to MUV:In fact, those are two opposite architectures. MUV solution yields Significantly superior results in terms of precision, cover range and natural & smooth interaction Supports both touch and remote interaction as part of the same optic solution, without complementary

aids like accelerometers and gyros Supports all screen sizes even above the 80 inches limit of interactive projectors Creates better user experience as a wearable solution-

Non of the interactive projectors can allow you to really TOUCH the screen as we touch ourSmartphone screen

Instead of holding a bulky pen during a 3 hour presentation, MUV free your hands to expressyour self, hold other things (like your papers or a microphone), type on a keyboard etc.

The need to hold something eliminates the option of remote multitouch interaction since youwon't hold 2 pens in both your hands...

Can work with any existing projector as an after market solution, and most importantly with othermedia devices such as existing LCD screens which are getting very common at the corporate andprofessional landscape.

Costs 1/10th

of the interactive projector price2

Supports depth recognition (not supported by any of the interactive projectors

MUV technology can transform any existing / new sold projector into a wall-sized tablet with the mostadvanced interactive abilities available today:1. Price:

~$200 penetration price going down to sub $100 a year after2. Installation process:

Mount a small sensor on top of the projector and connect it to the projector's USB slot (for poweronly)

Insert a USB dongle to the PC (or any other supported device) Click the MUV icon that appears on the screen

3. Touch Interactivity: The projected surface acts like a touch screen with tablet like multi touch abilities Built in stylus can be used for ultra-precise tasks like writing or drawing Unique hover mechanism enables to touch the screen without touching it

4. Remote Interactivity: The user can point the screen and control it from ANY point in the room (180 degree and up to 15

meters) Complete mouse functionality for traditional content including cursor, scrolling and clicking Remote touch, multi touch and gesture recognition support with pixel point accuracy Gentle depth sensing for interacting with 3d content

5. Extended features:

Embedded voice recognition abilities Supports multiple users and multiple screens concurrently Easy to use for all users with no learning curve

2 Regular projector + MUV is still 1/3rd of the price of an interactive projector


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Gesture Recognition

Overview:Gesture recognition interaction utilizes either active IR-based imaging or regular webcam imaging forhands free remote interaction using pre-defined movement of the human body, namely the hands. Thereare many companies operating in this area, main examples include Eyesight, Extreme Reality (XTR),

PointGrab, GestureTek, Gyration, Microsoft, Nintendo, Oblong, Softkinetic, Leapmotion, Light BlueOptics, Omek Interactive, Pebbles Interfaces and PrimeSense.Current use is focused with hands free gaming, remote control for a smart TV environment and near tomid control for personal devices, namely Smartphones and Tablets. Additional use can be found withvarious commercial and advertising applications.

Implementation Architectures:IR-based imaging solutions constantly emit IR pulses of different geometric patterns using highly preciselasers. In tern, two sensors then process the returned light to understand the topography in front of them.Regular webcam imaging is a pure software solution where complex algorithms of image processingconstantly analyze frames that are visible to the human eye. There is a well defined difference betweenthe two methods that resembles the difference between resistive touch and capacitive touch technology -IR based imaging is more expensive and can reach better performances, while webcam imaging is much

cheaper and can reach significantly inferior performances.

Compared to MUV: Micro movement support users can't and won't constantly wave their hands while controlling their

living-room screen but they prefer moving as less as they can. MUV support of gentle micromovements equips the user with those exact abilities.

Working distance - Gesture solutions has limited working distance of up to 5 meters for rough bodymovements or 1 meter for small finger movements, compared to 15 meters for the MUV (in its currentversion).

Inferior accuracy - MUV can effectively operate with pixel point accuracy regardless of the workingdistance.

Converged solution In addition to the precise mid-air control, MUV can also fully support mouse-likeand remote-like functionality such as clicks and scrolling to adapt it self to the common natural waysof interaction that we all used to. Both of them together can truly yield a meaningful solution forsmartTV environments.

GUI Redesign - Gestures interaction demands a complete redesign of the interface to be controllableby the user (such as bigger icons). MUV can support all existing cursor based content (i.e. webcontent) to be instantly controlled without any modifications or special Apps.

Mobile environments support - Sensors using active IR-based imaging are extremely difficult toembed in mobile environments (such as Smartphones and Tablets) due to power, heat and sizeissues. Regular webcam imaging tried to find its place within the mobile industry using softwaresolutions only, but it was limited to the most basic applications and was not embraced by themanufacturers.


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THE BUSINESS

MUV plans to initially address Projection related markets/applications. The main motivation factors foraddressing the projection space are:

a) Large addressable market: An install base of 50 million projectors presents large market for

ODM's and endless cross-sell / up-sell opportunities for regional distributors.b) Lower cost & superior performance Vs competitive offerings: Touch and Remote functionalities

are provided today only by unaffordable large screens or expensive Interactive projectors withsignificant native performance limitations.

c) Lower price sensitivity compared to consumer market.d) Efficient marketing investment: The Projectors space is clearly segmented into corporate (50%),

Education (40%) and consumer (10%). Each segment is accessed by specialized distributionchannels that canselectively and effectively be approached by MUV.

Addressing the Projection Market

Timeline

T=0 2G T=3 2G + 3G Mockup T=8 3G Prod.

OEM

ODM

Dist.&Sys.

Integrators

WebSales

PR&Buzz

M1

M3

M2 Dist. Orders

M5

M6

ODM Mfg & Sales

Start OEM

discussions

Start Dist.

discussions

Start ODM

discussions

Launch Kickstarter

Project / Early web

salesM4 E-Commerce Orders

MUV will attack the Projection Market using the following parallel activities:1. Generate PR and "Buzz" (M1):

a. Implement the MUV system with a number of broadcasting studios at cost prices tocreate the biggest Buzz factor on a massive scale

b. Directly approach prestigious institutes (e.g. Technion, Tel Aviv University, StanfordUniversity etc) and donate a few initial units in exchange for visibility and press coverage.

c. Directly approach prestigious board rooms (e.g. of large banks or big 4 auditing firms) toaddress the same visibility target at the corporate segments


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d. Test drive the pioneering "huge display control" application with key large venueconferences

2. Identify and sign projection equipment distributors & system integrators, to address the after-market education and corporate segments customers (M2).

3. Prepare product brochure, specifications and BOM, addressing East Asia ODMs (M3).Later on, select target ODMs as candidates for future manufacturing partner(M5).

4. Web sales for visibility (including a potential Kickstarter project) while strictly avoiding channelconflict (M4).

5. Address brand (OEM) manufacturers for embedded design wins (M6).

After Market ChannelsThe product will be sold as an aftermarket product as anOEM/ODM branded device.

1. ODM: These channels mainly target retail chains, and will enableinitial penetration of the MUVproduct and increase market visibility. ODMs will be later considered to become low-costmanufacturing partners, to fulfill POs of distributors. MUV plans to approach ODM's such asLogitech, Belkin, Hama, IO Data, Aiptek, Gigabyte, J3, Foxlink, remotek, Hanvon, onyx, tecometc.

2. Distributors & system Integrators: these channels are targeted to address the corporate andinstitutional customers, with which they have ongoing business relations. MUV is an appealingcross-sell / up-sell opportunity for distributors and resellers, and the company expects this

channel to become very successful with the MUV product.MUV plans to approach distributorssuch as CDW (US), Tech Data (US, UK, all of Western Europe), Inteltech (Mexico), Positivo(Brazil), NIIT (India), etc.

3. Direct web sales and E-commerce platforms: direct web sales and Social Media marketingwill serve to create demand around MUV's revolutionary product and generate initial PO's. Thisapproach with its low channel overhead and marketing cost will also offset the initial higher BOMof the product, enabling it to be sold at a consumer friendly price point.

Strategic Embedded Market:The product is targeted to the huge embedded market of projectors (and later on - Smart TVs).To achieve its go to market strategy for this product, MUV must partner with OEMs and Brandsthat will take MUVs embedded product and integrate it into their devices. There is a relativelyshort list of relevant players (Less than 30) that can be supported with a relatively small and cost

effective sales team. The sale cycle for this market is long but the unit multiples per channel arethe largest.

Production PlanMUV plans to outsource its production according to the following steps:

1. Series A production MUV has partnered with an Israeli CM that will support the initial 5,000 units production

run in their own manufacturing facility This will allow MUV close interaction and supervision at this critical stage, resulting in a

smooth and fast transition to mass production2. Mass production

As quantities justify, MUV will transition its manufacturing to larger CM (probably in EastAsia)

This two stage approach will ensure smooth operation and sales ramp with minimal risk and withoutinterruption.

Business ModelThe company plans to establish its revenues according to the following structure:

Sales to ODMs1. MUV will provide its ODMs with detailed reference design for the Thimble device and

Sensor. ODM will be charged for the Thimble mechanical infrastructure, which will be thephysical item sold and shipped by the unit. Each Thimble device entitles a softwarelicense number, which is required for end-user registration. Reasonable amount of


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Thimble stand-alone (for replacement purposes) will be sold at reduced unit price with nospecific software license.

2. As volume ramps up and design solidifies, MUV will integrate several components fromthe Thimble device into a single module (MCM). At that stage, unit charge will be by theModule count (no separate software license charge), and we assume the ODMs wouldprefer to manufacture the thimble mechanical ("plastic") part as well.

Sales to distributors:MUV shall provide distributors with packaged products. Initially these will be manufactured locally,and later on preferably by one of MUV's ODM partner, serving for this purpose as ContractManufacturer..


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COMPANY AND MANAGEMENT

MUV's team integrates a perfect mix of young entrepreneurial blood and veteran experience, as well asmulti-disciplinary know-how.

MUV is based in Israels Silicon Valley of Herzliya. Its start-up team is driven by two founders, co-founder developer, business advisors and several subcontractors from the fields of Optics, RFEngineering, Electrical Engineering, Embedded Software Engineering, Product Design and UI Design.The company has completed the development of the basic MUV application along with a 1

stand 2

nd

generation prototype finger sleeve, enabling it to demonstrate all of the abovementioned functionalityfeatures. MUV, via Reinhold Cohen law-firm, has filed for a comprehensive PCT application covering bothMUV's technology and various unique future developments taking place concurrently.

MUV is approaching market leaders in different segments to cooperate with customizing the system totheir needs, and is looking for an investment to commercialize the product and further extend its customerbase to a wide array of markets and applications. Investments and proceeds will be mainly used toexecute the R&D structure, develop the company's intellectual property and seek and operatepartnerships and cooperation

MUV was founded in 2010. Actual cash invested in the company so far = $150K

Management Team:

MUVs young entrepreneurial management team is supported by technology experts and veteranexecutives with successful track records.

Rami Parham, MUVs founder and CEO is an expert at the interactive technologies arena and has yearsof experience in software design and development. Rami holds a B.Sc. with honors in industrialengineering from the Technion Israel's institute of technology, and was most recently the manager anddeveloper of the inter-organizational data systems at Systematics, Inc.

Jonatan Ary, MUV's co-founder and VP R&D has more than 10 years of experience as a developer,team leader and system architect, dealing with diverse platforms including web, mobile applications,systems integration, social platforms and more, especially excelling with creating the most innovative userexperience in all of the above. Jonatan holds a B.A in Computer Science from the Interdisciplinary Centerand was most recently the CTO of Moblin.

Robert Parham, MUVs co-founder was an Officer in the IDFs main technological unit, in diverse rolesranging from project management to twice commanding the IDFs top computer course ARAM.Robert has earned a B.Sc. and M.Sc. in Computer Science from the Technion as a member of theTechnions elite excellence program, as well as an MBA from the University of Tel-Aviv. As a projectmanager with Microsoft, Robert oversaw the development process of one of Microsofts core securityproducts. Later, as a Product Manager with IBM, Robert was part of the core corporate marketing teamfor a $600M B2B product.

Daniel Star, Business advisor with over 25 years experience in global business, including technologyventures in Europe, US and Latin America. Former investment manager at Intel Capital in Israel andEurope, responsible for company building as part of the Intel Innovation Center Seed Fund.

muv - executive summary1

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