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Corporate Presentation August 28, 2015 NASDAQ: RESN

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Page 1: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

Corporate Presentation August 28, 2015

NASDAQ: RESN

Page 2: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Safe Harbor Statement

This document contains forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. Forward-looking statements may address the following subjects among others: the status of filter designs under development, the prospects for licensing filter designs upon completion of development, plans for other filter designs not currently in development, potential customers for our designs, the timing and amount of future royalty streams, the expected duration of our capital resources, our hiring plans, the impact of our designs on the mobile device market, and our business strategy. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: our limited operating history (particularly as a new public company); our ability to complete designs that meet customer specifications; the ability of our customers (or their manufacturers) to fabricate our designs in commercial quantities; our dependence on a small number of customers; the ability of our designs to significantly lower costs as compared to other designs and solutions; the risk that the intense competition and rapid technological change in our industry renders our designs less useful or obsolete; our ability to find, recruit and retain the highly skilled personnel required for our design process in sufficient numbers to support our growth; our ability to manage growth; and general market, economic and business conditions. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q) filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this document, and we expressly disclaim any obligation or undertaking to update forward-looking statements.

We may refer to information regarding potential markets for products and other industry data. We believe that all such information has been obtained from reliable sources that are customarily relied upon by companies in our industry. However, we have not independently verified any such information.

Page 3: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Corporate Overview

NASDAQ: RESN

Share Price (Aug. 28) $5.10

Market Cap $36.6 M

Shares Outstanding 7.2 M

Public Float 4.2 M

Insider Ownership 15.5%

Fully Diluted Shares Outstanding

8.6 M

Resonant ® is a late-stage development company creating innovative filter designs for radio frequency (RF) front-ends for the mobile device industry.

Resonant uses fundamentally new technology called Infinite Synthesized Networks™, or ISN™, to configure and connect acoustic resonators, which are the building blocks of RF filters. Headquarters: Santa Barbara, Calif. Founded: May 2012 IPO: June 2014

Page 4: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Compelling Investment

Ø  Large and Rapidly Growing Market •  20B mobile device filters sold in 2014; Projected to grow to 35B by 2017

Ø  Low Cost Business Model • Licensing business model requires no inventory and low overhead

Ø  Disruptive Technology •  New method of designing RF filters can displace conventional filters and combine multiple

filters into one delivering lower costs, smaller sizes, and improved performance •  Fewer components would dramatically simplify the mobile device supply chain •  Biggest fundamental change to mobile device filter design in more than 80 years

Ø  Unique and Protected Intellectual Property •  Aggressively patenting key elements of the ISN™ system •  More than 70 patents (pending or issued) and growing rapidly

Ø  Significant Barriers to Entry

•  ISN™ technology; Patents; Suite of proprietary software design tools; Highly experienced design team; Multi-year technology lead

Ø  Late Stage Development Company on the Cusp of Commercialization •  Developing commercial designs in collaboration with two Filter Manufacturers (Fabricators or

Fabs) of RF front-end devices

Page 5: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Market Challenges and Resonant’s Solution

Ø  The RF front-end industry is undergoing dramatic increases in growth and complexity due to: •  Band proliferation •  Carrier Aggregation (CA) •  Multiple-Input, Multiple-Output (MIMO)

Ø  This significant increase in complexity is resulting in a rise in the number of SKUs, higher costs, and longer time to market

Ø  These trends play to Resonant’s strength in design, modeling and novel approaches to dramatically reduce the size and cost of the RF front-end

Ø  Resonant has created a disruptive circuit design platform that can help alleviate this problem by improving single-band filters, and most importantly, creating highly novel and efficient solutions to more complex filter challenges

Page 6: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Band Proliferation Is Driving the Need for More Filters

One model with eight filters

Three models with 31-35 filters each

RF content increased 35% to $15.50 for “SKU Consolidation”*

* Canaccord Genuity

2011 2012 2013 2014

As carriers use more data bands, mobile devices need more filters creating a significant market opportunity

Page 7: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Resonant Platform: A Multi-Year Technology Lead

Team

ISN (Tools & Methods)

Technology 15 technical staff members with ~20 years average experience:

• 8 PhDs on staff • Comprised of physicists & engineers

More than 70 patents pending or issued

Invested than 50,000 man hours to-date

Page 8: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Resonant’s Design Process Allows for optimization of cost-size-performance design space

Traditional Approach

Specs Design Manufacturing

Driven by OEMs

Focus of today’s filter suppliers

Based on Lloyd Espenschied’s 1920s “acoustic wave ladder” design (patented 1931)

Specs Polynomial Designs

Possible Solutions Refinement Physical

Implementation Manufacturing

New design steps enabled by ISN™ filter design suite Same OEM specs Same mfg. methods

Resonant Design Approach

Page 9: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Two-Pronged Commercialization Strategy

Traditional surface acoustic wave (SAW) filters struggle in “hard bands”

Therefore, manufacturers use more expensive bulk acoustic wave (BAW) filters

ISN™ can improve SAW filters to work in difficult bands and reduce manufacturing cost

A filter that can “tune” to multiple bands could replace several existing filters resulting in significant size and cost savings

Resonant is developing such a tunable filter

ISN technology can also deliver cost-effective designs for complex filter multiplexing

Single Band Designs: Improve Existing Filters

Tunable Designs: From Many Filters to One

Page 10: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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ISN™ Enables a New Class of Single Band SAW Filters Targeting extremely high volume filter opportunities

Product 1 – Band 3 TC-SAW Duplexer Ø  Completed 1st generation (1.8x1.4mm) and 2nd generation (1.7x1.3mm) designs

for this high-volume, traditionally BAW band with competitive performance to existing products

Ø  Commenced work on 3rd generation product (1.6x1.2mm), which will provide a further cost reduction

Ø  Currently formalizing a business relationship with the Filter Manufacturer (Fab) in order to commence licensing to the Fab for sale to the module market

Product 2 – Also a Major Worldwide Band Ø  Engaged a second filter manufacturer (Fab) in March 2015 Ø  This design is a SAW duplexer for another high-volume, BAW/TC-SAW band Ø  First parts have been received; next steps include a revised design turn

Ø  On track to complete no later than Q1 2016

RF Filter Opportunities continue to grow because of industry

constraints on both supply and design

Page 11: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Single Band Designs Initial filters show great promise on both performance and price

Avg. Cost of BAW Duplexer $0.58

Avg. Cost of SAW Duplexer $0.28

Difference (Enabled Margin) $0.30

Filter Costs (Navian Research, 2014)

Resonant’s single band design showed excellent agreement between modeled (green) and

measured (blue) performance

A comparison of Resonant and Avago Band 3 Duplexer key performance metrics

Resonant (TC-SAW)

Avago (FBAR- Best in Class)*

Tx Center Band Loss 0.9dB 1.2dB

Band Edge Loss 2.2dB 2.1dB

Rx Center Band Loss 0.9dB 1.1dB

Band Edge Loss 2.8dB 2.4dB

Isolation 54dB 53dB

Size 1.8x1.4x0.38mm 2.0x1.6x0.9mm

* Source: Avago ACMD- 6103 Band 3 Duplexer Datasheet

Page 12: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Resonant’s Tunable Filters Will Reduce the Number Front-end Filters Needed

WW Average Cost Filter Set (2017) $1.85

Cost of Tunable Filter (Projected) < $1.00

Difference (Enabled Margin) > $0.85

Enabled margin could increase even further by reducing the number of power

amplifiers and switches as a result of Resonant technology

Data from Navian Research, 2013

Tunable Filter/Duplexer

Page 13: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Demonstration of Two Band Tunable Filter

Prototype three band tunable filter scheduled for completion by year end

Tra

nsm

issi

on

Simulation of single filter tuning between transmitting in Band 5 and transmitting in Band 8

Band 5 (824-849

MHz)

Band 8 (880-915

MHz)

Page 14: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Rapidly Growing IP Portfolio Six IP families protect Resonant methods and circuit designs

Proprietary software and tools continue to grow

Power Handling

Image Design

Tunability

Network Synthesis ISN™ Circuit

Structure

Methods Circuit Designs Physical

Implementation

Page 15: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Business Model

Ø License Custom Designs for a Per-Unit Royalty and License Fees

•  No costs or overhead for manufacturing a physical product

•  Results in high operating income

Ø Utilize Existing Manufacturing Methods

•  No modifications or new processes required

Ø Rapid Creation of Next-Generation Designs Expands Potential Customer Opportunities

Ø Retain all Intellectual Property

Page 16: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Management Team & Board of Directors

Name Background Selected Current & Past Affiliations

Terry  Lingren  CEO,  Director  &  Co-­‐founder  

20+  years  experience  as    a  senior  technology  execu>ve;  BA  Physics;  MSEE  

John  Philpo0  CFO  

20+  years  financial  and  accoun>ng  management  experience;    

MBA  UCLA  

Bob  Hammond  CTO,  Director  &  Co-­‐founder  

20+  years  as  Founder  and  CTO  of  STI;  Physics  Ph.D.  Caltech  

Neal  Fenzi  COO  &  Co-­‐founder  

20+  years  in  engineering,  opera>ons  and  marke>ng  posi>ons  at  STI;  BSEE  

 

Mike  Eddy  VP,  Corporate  Business  Development  &  Marke>ng  

Founder  and  President  of  ANTONE  Wireless;  STI;  Chemistry  Ph.D.  Oxford;  MBA  

John  Major  Chairman  

Mul>ple  board  memberships  with  public  and  private  high-­‐tech  companies    

Tom  Joseph  Independent  Director  

Leader  in  the  RF,  semiconductor,  cellular,  fiber  op>cs  and  SAW  industries.    

PhD  &  MSEE  at  USC  

Rick  Kornfeld  Independent  Director  

VP  Engineering  and  leader  of  first  CDMA  effort  at  Qualcomm;  Serial  Entrepreneur  

Janet  Cooper  Independent  Director  

Financial  exper>se  in  capital  markets,  audit,  tax,  accoun>ng,  treasury  and  risk-­‐

management    

WESTELL

Page 17: RESN Investor Presentation - 8-28-15 Finalcontent.stockpr.com/resonant/db/34/530/presentation/RESN...2015/08/28  · Insider Ownership 15.5% Fully Diluted Shares Outstanding 8.6 M

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Resonant is Reinventing the RF Front-End

Ø  The RF front-end industry is undergoing dramatic increases in growth and complexity due to:

•  Band proliferation

•  Carrier Aggregation (CA)

•  Multiple-Input, Multiple-Output (MIMO)

Ø  Resonant is attacking these challenges with its Infinite Synthesized Networks™, or ISN™, technology, a fundamentally new way to configure and connect acoustic resonators

Ø  Resonant is not only making improvements to single-band filters but can also create highly novel and efficient solutions that address the complexity problems