Digital Global Systems Inc.
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Transcript of Digital Global Systems Inc.
Enhancements in wireless technology and services over the last decade, have fundamentally altered the way we interact with data and each other
In order to sustain wireless innovation and support exponential demand, similar innovation in monitoring technologies are an absolute necessity
Innovation in Wireless Technologies Provide Efficient Access to Information In Real-time
Advancements in Wireless Devices Connect Billions Around The Globe Instantly
2010• Post IPhone• LTE Mass Adoption• E-Commerce in Full Swing• Birth of Social Media
2015• Facebook 1 Billion+ Users• Video Streaming = 70% of Traffic• Federal and Commercial Sharing
Spectrum
As spectrum is a finite resource, Tier-1 carriers (AT&T), First Responders (Police/Fire), the Federal Government and Transportation Services (Freight Rail) have been
forced to relocate, consolidate and explore sharing initiatives
2006• Pre-Apple IPhone• Pre-LTE• Pre-Social Media• Early Days of Streaming
All wireless communication signals from radios, to cell phones, to tablets, travel over the air, via radio frequencies. The collection of radio frequencies is called spectrum.
Spectrum is often referred to as “The Oxygen of Wireless Networks.”
Exponential Demand Has Escalated Spectrum Management to a Global Discussion
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Reduced Situational Awareness Along our
National Borders
Dropped Calls and Poor Download Speeds
Confusion due to Communication Failures In
Times of Crisis
Derailments for Freight, Commuter and Passenger
Trains
Telecommunications Public Safety Transportation Federal
With Mobile Subscriptions set to outnumber the World’s Population by a ratio of 2:1 by 2020, the problems are only going to intensify. Without automated systems, able to organize significant amounts of wireless signal activity quickly and efficiently, spectral environments will become
nearly unnavigable, unable to support continued demand for services
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An Overall Lack of Insight Into This Complex Environment, Has Led To Some Very Real Problems
What has done for search, DGS is doing for Spectrum Management. Our innovative technology makes sense of today’s chaotic wireless spectral environment. For the first time, there is a more holistic view of the spectrum, in real-time
Our innovative algorithms automatically decipher large complex and dynamic spectral environments rapidly, unlike anything in the market today. Our software produces the data needed to:
• Reduce wireless interferenceand improve network performance
• Clear frequencies of unauthorized users
• Identify and locate signals of interest to improve National Security
• Find available frequencies to enable the FCC mandated sharing of spectrum between government and commercial users
DGS: Organizing the World's Spectral
Information, making it easily accessible and
useful, supporting Wireless Communication
Digital Global Systems (“DGS”): Who We Are
Reduce Wireless Interference
• Enable Broadband Service Providers (AT&T), to improve network performance, capacity and quality, while reducing cost with maximizing usage of deployed network assets
• Ensure the railroad trackside safety mechanisms which wirelessly control track signaling and locomotives are clear from Interference allowing safe transport of commuters and freight
• Improve the “Fan Experience” at stadiums and concerts
Identify and Locate Signals of Interest
• Detect and locate, rogue or potentially harmful signals, which may be associated with illegal activity (Homeland Security application)
• Actively de-conflict a spectral environment (compare known to unknown signals) to better identify friendly and hostile signals in a crowded venue or battlefield
Clear Frequencies of Unauthorized Use
• Identify open channels, suitable for communications in a matter of seconds, for our Nation’s armed forces to utilize during deployments
• Ensure frequencies dedicated for first responders are clear of unauthorized users
• Enable State and Federal Emergency Services organizations to mange the spectrum as its re-allocated between carriers
Find available Frequencies
• With environmental sensing capability, assist Federal Agencies and Commercial entities with relocation to new frequencies, ensuring they are cleared and ready for use
• Automatically monitor spectrum allocated for sharing between the federal and commercial use
• Conduct capacity and usage Studies for all industries using Land Mobile Radio (LMR), to be utilized in industry wide network planning and frequency coordination efforts
Digital Global Systems (“DGS”): What We do
• Test and Measurement/Monitoring Equipment, Is primarily developed for laboratory use
• The “Big Box” hardware centric mentality, still dominates the industry
• Spectrum Monitoring/Interference hunting, is still largely manual, with teams deployed to sites 3 to 4 times, in order to resolve issues
• Specialized equipment, requires highly trained engineers to operate
• Environmental studies are typically completed by an individual, with little collaboration from teammates or senior engineers
• Multiple pieces of test equipment, including a laptop for processing, are required to complete tasks
• Software is not portable to other form factors, while hardware is incapable of integrating 3rd party technology
Current Spectrum Management Technologies Fail to Meet Market Needs
Anritsu
Rohde Schwarz
CFRS
The Digital Global Systems (“DGS”) Difference
Algorithms Make Sense of Complex, Dynamic Environments
Data is Organized Efficiently for Analytics
Software Centric Networked Platforms
• Complex environments are efficiently converted into easy to follow data points
• Large volumes of information are efficiently sorted through, producing actionable information
• Manpower and cost are significantly reduced, while results are ascertained faster and more efficiently
• Any and all data points are stored, producing actionable reports
• User data, baselines (expectations) can be compared to real-time data, to highlight anomalies (Defense Applications)
• Available spectrum can be identified for utilization, acquisition or sharing
• Portable software can be placed on multiple devices, or inside of infrastructure, such as towers
• Multiple software packages can be integrated into one platform, combining best of breed technologies
• Advanced, networking connects devices anywhere, reconnecting automatically if a connection is dropped
Digital Global Systems has Developed the First Spectrum Analysis Software Which:
• Automatically Distills Actionable Data at the Point of Intercept over Wide Spans• Adapts to Rapidly Changing Signal Environments to Deliver Accurate Results• Recognizes and Captures Transient and Bursting Signals (LTE)• Pre-processes Data to improves speed and accessibility of data feeding the big data
architecture and advanced analytics system aspects
The Digital Global Systems (“DGS”) Difference – Automatic Signal Detect
DGS Software is Built to Work with C.O.T.S Components and 3rd Party Platforms, Evolving as Technology Evolves. This Allows the Company to:
• Answer the market demand by providing Modular Solutions to Clients enabling recurring revenue streams
• Integrate with New Form Factors, Existing Infrastructure and Software Platforms• Be seen as a Systems Integrator vs. a Box Company
The DGS Difference – Flexible Software and Hardware Capable of Integrating 3rd Party Technologies, to Deliver Best of Breed Solutions
The DGS Difference – Flexible Architecture (Software)
DGS has architected our software to work with:
• Multiple OS (Windows, Linux)• Multiple Server Environments (Ubuntu, RedHat, BSD, Solaris)• Multiple Security Packages (SSL, SSH, HTTP)
A common software architecture which can work on a variety of platforms:
• Reduces cost complexity both internally and for clients• Allows DGS to take advantage of C.O.T.S components/platforms• Reduces the IT barrier to gain acceptance to enterprise
Flexible Network Architecture
While competitors offer remote access, DGS has developed an innovative architecture enabling:
• Remote systems to automatically configure and connect to a network
• High speed, secure data flow over Wi-Fi, mobile radio (SIM) or Ethernet
• Command and control over spectral displays and reporting from anywhere at anytime
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The DGS Difference – Mission Specific and Flexible Solutions
SigBase 4000W/Enclosure
SigBase 5000Wall Mount
SigBase 2000All-in-one Laptop
Transportable Distributed RF Monitoring Multi-Function
Common Software Platform Regardless of Hardware Selection
DGS has architected a common software platform that is software centric, working with a multitude of devices. This allows the company to provide cost-effective, mission specific solutions, which reach a larger percentage of the market
DGS offers Solutions which are:
• Ruggedized and Modular - Lasting up to 3 times longer than standard equipment• Networked – Facilitating Collaboration Across Enterprise Resources and Systems• Permanent or Transportable – Enabling equipment to be hand held or left on site for extended periods• Multi-function – Incorporating third party hardware or software, to provide additional value to the client
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Big Data - Managing Complex, Unstructured Spectral Data
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Operational Impact
• Take Immediate Action on an event – Determine a drone is inbound to a high risk target area (Whitehouse, U.N.Buidling, Sporting Venues)
• Improve Quality of Service Proactively - Reduce Interference, Increase Capacity for First Responder Networks
• Plan Coverage Efficiently - During Terrorist Incidents and Natural Disasters, quickly identify connectivity issues and find open space
DGS is a pioneer in capturing unstructured spectral data from an environment and transitioning it into actionable information
That actionable information is used in tandem with rules engines, historical data, and existing engineering processes in optimization efforts (coverage, capacity and interference analysis)
Why DGS is Unique – Greater Awareness
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Autonomous, Unattended Operation
• Permanent or Portable Platforms can work autonomously collecting spectral data• Advanced algorithms reduce the amount of personnel needed to collect and analyze data
Remote Access “Connect Anywhere”
• Connect, control and share data remotely between one, or multiple units utilizing mobile radios (SIM), Wi-Fi, or a local area network (SSH, Encrypted Connection)
Identify Correlated Events
• Link together multiple events occurring in the spectrum simultaneously, such as intermodulation
Triggers, Alerts and Notifications
• Environmental expectations can be compared to spectral events in near real-time to create alarms and alerts. Alerts will be sent when anomalies or variances are detected, enabling the remote units to become active participants vs. passive data collectors
Flexible Deployment Models
• Capable of designing intricate hardware and software platforms, to meet the needs of the mission, with an adaptable software architecture
Wideband Scanning Allows the Entire Picture to be Seen
• Wideband Scanning enables a greater percentage of a spectral environment to be observed and analyzed to identify adjacent channel interference, open space and intermodulation
U.S. Patents Issued to DGS
QualcommInterDigital Technology
Broadcom Motorola
Nokia
Samsung
AT&T
Ericsson
TruePosition
Alcatel-Lucent
Cisco
Sony Microsoft
Intel Wi-LAN
ParkerVision Sprint
Hewlett-Packard
Texas Instruments
Government of the United
States of America
Research In
Motion
LG Electronic
s
Andrew
Nortel Networks
Other Assignees and
Unassigned Patents
Other companies with 20+ Patents in this space• 24 Issued U.S. Patents
• 4 non-provisional utility patent applications pending
• 2 International filings pending under the Patent Compliance Treaty (PTC)
• Compatible patent context with many large, key corporations making us an attractive acquisition target
• Blocking patents create licensing opportunities and future revenue streams
• DGS portfolio strategically fills patent gaps
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Blue Chip Clients in All Targeted Verticals
The DGS Difference – Not a Typical Early Stage Company
25-30 years of Experience in Key
Leadership Positions
Seasoned Technical and Channel partners
24 Issued U.S. Patents in less than 3 years
Positive Cash Flow in 2016 with Exponential
Growth Potential
Completed Series A of $8.25M to Individual & Strategic investors
Market Size – Test and Measurement (T&M)
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Test & Measurement (T&M)
Market Size - $47.2 billion by 2025
Highest Revenue Generator - The Communication segment (Broadband Service Providers, Land Mobile Radio, Defense) due to rapid growth and evolution of communications technology
Explosive Growth for DGS – DGS has focused on automated solutions, which blend dynamic signals analysis software with Big Data Analytics. Automated collection and Advanced Analytics, are the keys to maintaining communications for the Transportation, Telecommunication, Defense and Public Safety Sectors. With Billion spent on spectrum acquisition and equipment, advanced software and automated services are desperately needed, to maintain quality communications for these groups
Market Guidance - Frost and Sullivan Report – 2016, defined “Big Data Analytics” as the “Mega Trend” in Test and Measurement. This subset of the T&M industry is growing at a compound annual growth rate (CAGR) of 28.2% and is expected to reach 2.4 billion by 2021 alone
Industry Vertical 2015 (Billions) 2020 (Billions) 2025 (Billions)
Global Test & Measurement $19.24 $30.68 $47.20
Global Big Data in T&M $0.55 $2.4 >$5.0
Global Communications Segment in T&M* $11.75 $20.72 $33.41
North American Communications Segment T&M* $4.10 $6.65 $10.38
DGS Targeted Verticals in North America ** $1.23 $2.33 $4.67
* Big Data Analytics Revenue is in addition to these table values** DGS Targeted Verticals – Telecom, Public Safety, Transportation, Select Government Agencies
Vertical Market Focus
Broadband Service Providers
Government Agencies Public Safety Transportation
Enabling World-Class customer experience through maintaining quality and maximizing capacity in any Wireless Environment
Supports Self Optimizing Network initiatives through remediation of interference
Providing greater wireless Situational Awareness for high risk National Security targets
Manages Sharing of Spectrum Assets between Government & Enterprise
Enabling clear & sustained coordinated communications Nationally for Fire and Police First Responders
Identifies available spectrum for wireless communications during Disaster or Crisis Events
Interference Management across critical wireless systems improving safety & reducing derailments
Providing visibility to manage spectrum ensures Freight and Passenger traffic continue to flow effectively without disruption
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Telecommunications
• User demand continues to explode requiring additional spectrum assets to be acquired and shared with other entities
• Interference will only increase, placing additional strain on operational efficiency and increasing cost
• Existing test and measurement equipment is limited in capability and has a short lifecycle
• Maintaining the number of sites exceeds personnel availability and training capabilities
Current Challenges• Automated alerting and collection systems
capture anything and everything
• DGS consolidates SW & HW into a common platform, reducing capex
• DGS automatic signal detect analytics transform dynamic external environments into easy to follow data points – In 15 field trials, DGS technology was able to solve problems 98% faster (hours vs. days)
• DGS networking enables multiple sites to be observed simultaneously, remotely and collaboratively (Required Under a C-RAN Model)
DGS Solutions
Long-term costs and challenges associated with network optimization and user demand will only continue to grow with spend for new infrastructure planned for $100B by 2018 with more spectrum assets in use than ever before
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Transportation - Rail
The Railway Industry is in the middle of unprecedented change and reform to its communication systems.
Freight Rail needs better visibility into spectral environments
• With 575 Freights in North America, Passenger and Commuter all competing for limited space, identifying open frequencies, suitable for communication is paramount
• Federally mandated Positive Train Control (PTC) network deployment for all Rail in an interference rich environment
• Interference is proving to be the Achilles heel of narrow banding initiatives
Government mandates, such as PTC (Positive Train Control), have united freight, passenger and commuter rail in an effort to use data in order to become more secure. Other mandates such
as Narrowbanding, have forced the Railway industry to utilize their spectrum more efficiently.
Current ChallengesDGS Technology is designed to provide the railway industry better visibility into spectral environments
• Form factors can be placed in towers, on locomotives, or used in the field to identify open channels for acquisition and utilization
• Uniquely positioned with sole PTC radio manufacturer negotiating for exclusive strategic relationship
• Interference can be identified and remediated faster by comparing the expected with the actual automatically
DGS Solutions
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Government Agencies
The Federal Space has recognized the important role spectrum plays in both continued innovation and our Nation’s security
At a time when the Federal Operations are requiring greater access to real-time information, budgetsare being reduced. Reduced spending and workforce allocations, combined with mandates to reallocate or share spectrum, are impacting the Government’s ability to perform operations
Current Challenges DGS Solutions
• Controlling the U.S. Borders and preventing narcotics from entering
• Clearing and maintaining new spectrum, supporting federal communications
• Facilitation of sharing initiatives in AWS-3, 3.5 GHz and the ISM Bands
• Creating and Enforcing policy while workforces (FCC) are being reduced
• Autonomous DGS units can send triggers and alerts when anomalies are detected
• Wideband, automated processing maps geographies faster than current, highly manual processes
• Automatic Signal Detect, Databasing and recognition will assist in sharing initiatives
• Transportable devices, with automated collection capabilities can supplement capability and reduce the impact of workforce reductions
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Public Safety
Public Safety Communications are evolving with the advent of LTE and advanced LMR systems co-existing while potentially sharing spectrum assets with the commercial world
Over a decade since 9/11, events such as Hurricane Katrina and the Boston Marathon bombing, remind us how our communications systems can be impacted during crisis
Current Challenges DGS Solutions
• Rebanding is still far from complete as states, counties and municipalities struggle to identify open frequencies to migrate to
• Intermittent interference has proven difficult to overcome
• Self-Inflicted interference, such as PIM are silently impacting the LMR market
• Supporting Mission Critical Systems while planning for the build-out of broadband infrastructure
• Frequencies with limited activity can be selected for utilization, with sources of potential interference identified quickly
• Long-term automated scanning can be used to better locate the source(s) of intermittent interference
• Impact from Intermodulation and other forms of self-inflicted interference are reduced
• DGS autonomous and cost-effective nodes can be located in towers, aggregating real-time data for reactive and proactive planning
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Revenue Projections
EBITDA
Gross Revenue
2016 2017 2018
100,000 3,750,00011,250,…
6,500,00016,250,000
38,500,000
REVENUE 2016-2018EBITDA Gross Revenue
Tier 1 Carriers
12%
Railroads & Utilities
30%
Public Safety28%
Government30%
2016 Gross Revenue By Percentage
Forward looking statements based on unaudited results
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Copyright © 2016 by Digital Global Systems Inc. All rights reserved. No parts of this document may be reproduced, transmitted or stored electronically without Digital Global Systems Inc.’s prior written permission
Confidentiality Statement
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THIS PRESENTATION INCLUDES CERTAIN STATEMENTS, ESTIMATES AND PROJECTIONS PROVIDED BY THE COMPANY WITH RESPECT TO THE ANTICIPATED FUTURE PERFORMANCE OF THE COMPANY. SUCH STATEMENTS, ESTIMATES AND PROJECTIONS REFLECT VARIOUS ASSUMPTIONS BY THE COMPANY CONCERNING ANTICIPATED RESULTS AND ARE SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE RISKS, UNCERTAINTIES, AND CONTINGENCIES, MANY OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY AND ANY OF WHICH MAY HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS, OPERATIONS, AND FINANCIAL PERFORMANCE. ACCORDINGLY, THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS, ESTIMATES AND PROJECTIONS WILL BE REALIZED. THE COMPANY DOES NOT MAKE ANY REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH STATEMENTS, ESTIMATES AND PROJECTIONS OR THAT ANY FORECASTS WILL BE ACHIEVED. INDEPENDENT PUBLIC ACCOUNTANTS HAVE NOT REVIEWED, EXAMINED OR COMPILED THE PROJECTIONS PRESENTED IN THIS MEMORANDUM, AND WE ASSUME NO RESPONSIBILITY FOR THEM.
INFORMATION AND PROJECTIONS CONTAINED IN THIS PRESENTATION HAVE BEEN PREPARED BY THE COMPANY FROM INTERNAL INFORMATION AND FROM OTHER SOURCES WHICH ARE BELIEVED TO BE RELIABLE TO ASSIST INTERESTED PARTIES IN MAKING THEIR OWN EVALUATION OF THE COMPANY, AND DO NOT PURPORT TO CONTAIN ALL OF THE INFORMATION THAT AN INTERESTED PARTY MAY DESIRE IN MAKING SUCH AN EVALUATION. NO REPRESENTATIONS AND WARRANTIES ARE MADE AS TO THE ACCURACY OF SUCH INFORMATION, ANY OF THE PROJECTIONS, OR ANY OTHER WRITTEN OR ORAL COMMUNICATION TRANSMITTED TO THE RECIPIENT IN THE COURSE OF ITS EVALUATION OF AN INVESTMENT IN THE COMPANY. NEITHER THE INFORMATION CONTAINED IN THIS PRESENTATION, NOR THE PROJECTIONS BASED ON SUCH INFORMATION WERE PREPARED WITH A VIEW TO PUBLIC DISCLOSURE OR COMPLIANCE WITH PUBLISHED GUIDELINES OF THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, OR THE GUIDELINES ESTABLISHED BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS. THERE CAN BE NO ASSURANCE THAT THESE PROJECTIONS WILL BE REALIZED. THE FORECAST AND ACTUAL RESULTS WILL LIKELY VARY, AND THOSE VARIATIONS MAY BE MATERIAL. THE COMPANY EXPRESSLY DISCLAIMS ANY AND ALL LIABILITY FOR INACCURACY OR INCOMPLETENESS OF ANY INFORMATION CONTAINED HEREIN, OR IN ANY OTHER WRITTEN OR ORAL COMMUNICATION TRANSMITTED OR MADE AVAILABLE TO A PROSPECTIVE INVESTOR (COLLECTIVELY THE "INFORMATION"). IN ALL CASES, INTERESTED PARTIES SHOULD CONDUCT THEIR OWN INVESTIGATION AND ANALYSIS OF THE COMPANY, THE SECURITIES AND THE INFORMATION. IF THE RECIPIENT OF THIS PRESENTATION DOES NOT WISH TO PURSUE A TRANSACTION WITH THE COMPANY, THE RECIPIENT AGREES TO PROMPTLY RETURN THE INFORMATION OR OTHERWISE DESTROY IT AND NOT FURTHER DISTRIBUTE OR DISSEMINATE THE INFORMATION OR THIS PRESENTATION. IN ANY EVENT, THE COMPANY RESERVES THE RIGHT TO REQUIRE THE RETURN OF THE INFORMATION AND THIS PRESENTATION AT ANY TIME.
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