1. technology and computing

Investor
Presentation Q2 2015
STOCK SYMBOL: MAXD
SAFE HARBOR STATEMENT
Statements in this Presentation which are not purely historical, including statements
regarding Max Sound’s intentions, beliefs, expectations, representations, projections, plans
or strategies regarding the future are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The forward-looking statements involve
risks and uncertainties including, but not limited to, the risks associated with the effect of
changing economic conditions, trends in the products markets, variations in the company's
cash flow or adequacy of capital resources, market acceptance risks, technical
development risks, and other risk factors. The company cautions investors not to place
undue reliance on the forward-looking statements contained in this Presentation. Max
Sound disclaims any obligation and do not undertake to update or revise any forwardlooking statements in this Presentation.
MAX-D offers proprietary & unparalleled
technologies that optimize and restore the
audio and visual experience for its users on
any device, medium or platform.
OUR PROPRIETARY TECHNOLOGIES
AUDIO
VISUAL
Our patent pending technology delivers
Our Agreement with VSL Communications
High Definition (HD) Audio to any device or
give us the worldwide license for Optimized
platform and improves the sound you hear
Data Transmission and Methods (ODTM)
from any device by resynthesizing lost,
which delivers and substantially reduces the
compressed sound in realtime – without
size of multi-media content and data files in
i n c r e a s i n g fi l e s i z e a n d w h i l e
a lossless format.
simultaneously saving bandwidth usage
and costs.
EXPERIENCE
OUR
MAX-D HD Audio provides consumers
a superior listening experience.
OUR LICENSED VISUAL EXPERIENCE
Optimized Data
Transmission and
Methods (ODTM)
The ODTM process allows internet
users everywhere a quicker load time.
OUR STORY
Lloyd Trammell, our CTO, is a pioneer in the field of
dimensional sound processing. He is known for working on
one of the first surround sound systems which was sold to
Hughes Aircraft and also as a key developer of Peavey’s
KOSMOS processors.
MAX-D HD Audio was founded on Lloyd’s patent pending
process that improves the audio you hear from any device,
by resynthesizing lost, compressed sound in realtime –
without increasing file size.
OUR LEADERSHIP
GREG HALPERN, CHAIRMAN
•  1980’s – Widely noted in the media (and Oprah)
for his achievements in pioneering Computer
Animated Imaging and Electronic Anesthesia.
•  1990’s – Halpern developed early search
engine algorithm software and successfully
launched the first and only S.E.C. cleared webbased end-to-end fundraising.
•  2 0 0 0 ’ s – T r a n s f e r r e d b r e a k t h r o u g h
technologies from the U.S.D.A. and D.O.E. to
commercialization and listed with the AMEX.
•  Built all aspects of emerging ventures and small
business infrastructure and testified before
congress on improving the capital markets.
JOHN BLAISURE, CEO
•  Founder and CEO of Effective Network Systems,
a telephony software company that debuted at
the Intel Technology Summit in 1999 as a top 40
telephony company.
•  Creator of Fonz By The Day stores, a cellular
communication reseller and retailer in the
southwest.
•  Blaisure brings over 20 years of experience in
strategic planning and in the marketing of
communication technologies.
OUR ADVISORY BOARD
Highly Successful and Well Known Industry Leaders.
MICK FLEETWOOD
CARL STUBNER
LANE DAVIS
FRANK SERAFINE
ANTONINA ARMATO
FRANK CORREA
IAN BOXILL
FRED WALECKI
ERIK BRADLEY
TODD CAVANAH
TIM JAMES
MARK NEEDHAM
ROBIN SIBUCAO
JONATHAN SPALTER
JOHN OVNIK
DAVID H. POHL
PETER TSOLINAS
OUR EVOLUTION
Max Sound evolved from an audio innovator, to a company that
exists to bring forth technologies for the betterment of our
world.
Our portfolio of solutions ensure that users get the highest
quality audio experience, and best optimization of multimedia
and data content – on any device or platform.
MAKES ANY SYSTEM
SOUND BETTER
Our patent pending technology is hardware / platform agnostic
– no need to change or add equipment.
OUR FIRST MARKETS
Phones
Speakers
Gaming
Computing
Streaming!
OUR REVENUE APPROACH: AUDIO
1948
1963
1982
2001
2007
2013
The evolution of audio devices and technology has not always led to the
advancement of sound. MAX-D works with ANY sound technologies.
We get paid to help
PRODUCTS SOUND BETTER.
OUR BUSINESS MODEL: AUDIO
Max Sound licenses to manufacturers
Consumers hear the difference
Consumers buy MAX-D branded products
With MAX-D HD Audio you
can reduce your bitrate
Smaller Data Usage = Lower Costs
Example of Data Consumed for 1000 listens
of a 3.5 minute song track…
BIT RATE
DATA USAGE
548 kpbs
340 kpbs
282 kpbs
13.72 GB
8.51 GB
7.06 GB
128 kpbs
3.2 GB
PARTNERSHIP WITH QUALCOMM
Qualcomm remains the premier
chipset provider to OEMs and
customers worldwide.
NOW SUPPORTING
REVENUE MODEL: LICENSING
OEM LICENSING
• Traditional Licensing Royalty per Chipset or Device
• Consumer Licensing Model with Revenue Share
ADDITIONAL REVENUES
• HD Audio Branded App – Paid upgrade Apps marketed by OEMs
• Hearing safety device advocacy / new business angle
• Connected Car
There’s more to MAX-D than just great sound!
We protect against hearing loss
MAX-D resynthesizes data that was lost during the compression process. Our patent pending
audio technology is able to restore the missing audio content without increasing the volume level.
MAX-D is the Better Way to Minimize
Hearing Loss with Lower Volume
Image above represents impact of MAX-D.
MAX-D Hearing Preservation:
How We Matter, By the Numbers
MILLION
66
MIN
%"
MAX
of personal music player users
are listening to music louder
than 85 decibels.
People could suffer from
hearing loss by 2030.
12.5% OF KIDS
between the ages of 6 and 19 suffer from
hearing loss as a result of using ear
phones/buds turned to a high volume.
MAX-D can change the Statistics!
NEARLY ONE IN FIVE
teens has lost a bit of their hearing and
the problem is increasing every year.
1 5"
OUT
OF"
HOW LOUD IS
TOO LOUD?
40
60
85
90
105
110
115
120
Noise-induced hearing damage is related to the duration and volume of exposure.
Government research suggests the safe exposure limit is 85 decibels for eight hours a day.
140
Another Market Opportunity: The Connected Car
The connected car is an automobile with internet access that can be
shared with other devices – both inside and outside the car...
Rogers Communications states that there will be 100 million connected cars on the road by 2016.
Auto manufactures are trying to create the best connected car platform.
By 2020, there will be 50 billion devices connected to the internet.
Nokia is spending 100 million dollars to identify and invest in companies whose innovations will be
important for a world of connected and intelligent vehicles.
Intel Capital is spending millions of dollars creating a Connected Car Fund, to accelerate
technology-innovation in the automotive industry
INNOVATION OF THE FUTURE
Unfortunately most connected car platforms have
low percentage ratings for their innovation
PLUG-N-PLAY THE MAX-D WAY
MAX-D is a simple Plug-N-Play Solution that solves
many Connected Car issues.
The MAX-D HD technology maximizes perfection in a number of
components, which is paramount to mastering the connected car
experience. Critical to the consumer is voice quality, and voicebased applications. Additionally, large investments are being made
into content delivery / availability and the associated importance of
infotainment audio.
MAX-D HD easily integrates into any existing platform without
adding expensive equipment, retooling or expensive hardware.
MORE PATENTS
MORE CONNECTED
MORE REVENUE
The benefit of more reliable voice input/
output – SAFELY, allows more focus on
the drive – NOT ON THE DEVICE!
With 71 filed patents MAX-D HD can give
any brand an audio edge. The MAX-D
HD Technology creates the most
advanced – connected – atmosphere,
for the ultimate connected car
experience.
MAX-D
has the
opportunity
to influence
the way we
experience
audio
OUR MARKET:
JUST SCRATCHING
THE SURFACE
1 BILLION
DEVICES
(Which is JUST 2013
shipped smartphones)
If we charged 5 cents per device to license
MAX-D HD Audio…$50,000,000
That’s $50 MILLION in Revenue!
2015: MILESTONE TARGETS
Expand the availability of MAX-D HD Audio
By end of 2015 we expect to gain enough traction in various
business segments to be able to forecast revenue growth for 2016.
OUR REVENUE APPROACH: VISUAL
Max Sound acquired the rights to license VSL’s ODTM technology and
is enforcing Intellectual Property rights.
Filed infringement lawsuit against Google and its subsidiaries: YouTube
and On2 Technologies. We are represented on contingency by litigation
firm, Grant & Eisenhofer P.A.
OUR APPROACH: VISUAL
Optimized Data Transmission and Methods (ODTM)
delivers and substantially reduces the size of multimedia content and data files in a lossless format.
We are enforcing the IP rights, and planning to
launch a licensing strategy to the substantial
universe of content providers who are already
benefiting from the Technology.
If you have a 100 megabyte video file, that file
will now be 3 megabytes!
Think about it:
ü  Lower Delivery Costs
ü  Less Storage Space
ü  Less Upload Time / Download Time
ü  Highest Quality Audio, Video, Data Delivery
ALL AT 3% OF THE COST, TIME AND 100% OF THE
ORIGINAL QUALITY
OUR STORY IS
BEING HEARD!
OUR MARKET:
JUST SCRATCHING
THE SURFACE
1,200
ODTM = Over
companies
infringing on our patent license.
If we charge $10,000 per company, per year to license the process…
$12 ANNUALLY
MILLION IN REVENUE
Source: Sikora Report, 2012, Report on Coding Patent WO 03/067777 A1
OUR GROWTH TARGETS: 2015-2018
Expand availability of MAX-D HD Audio on devices
with OEM partners.
• Through aggressive sales and licensing.
• Brand awareness for our MaxD HD Audio difference.
• Extend our design to Apple iOS and Windows platform Apps.
Expand licensing with content providers, utilizing ODTM.
Aggressively defend IP portfolio.
WE THANK YOU
For more information about this opportunity, please contact:
JOHN BLAISURE
PAUL MYERS
D: 760.415.1221
O: 800.327.MAXD
E: [email protected]
O: 877.777.1987
F: 800.327.MAXD
E: [email protected]
CEO
Director of Operations