eMagin(EMAN)- A key player in the VR era? Stock price and IR presentation

※Why am I interested in eMagin?

-Because it is in the Apple AR/VR Value Chain.
-The first generation of Apple Apple AR/VR uses new OLEDos instead of the existing LCD/OLED.

-OLEDos is a method of manufacturing OLED on silicon, and I know that TSMC, Sony, and eMagin have produced it together.

-eMagin, which used to mainly produce VR/AR-related devices for military, aviation, medical, and industrial use, has now become a bep company. As VR/AR becomes more popular, it looks like it can enjoy an upside with Apple, the most powerful brand.

-What is the company's role in Apple's value chain? What is the company's technology? How much sales and profits will you make in the future? These are key questions.


※OLEDos market trend

Samsung Display is also jumping into micro OLED development... Requested by Samsung Electronics, etc. - The Elec (thelec.kr)

-In the above article, Sony makes OLEDos (Micro OLED) in the first generation of Apple VR, and Samsung and LG Display are preparing to develop OLEDos to enter the next generation as the market grows.

-LGD plans to place an order for a MiroOLED (OLEDos) vaporizer in 3Q.

-Samsung Display did an AR HoloLens project with Microsoft, and invested in US AR company Digirend (WaveGuide technology - a technology that bends display light and projects it on a user's lens) over 2019 and 2021

 

※On Silicon

Evolution of Virtual Reality – (3) MicroLED, OLEDoS, OLED | LG Display Newsroom

-Basically, if the substrate is glass, it is classified into rigid OLED and flexible OLED if PI (polyimide).
-If the substrate is Silion, it is OLED on Silicon (OLEDos).

 

-Micro LED

-You can think of it as an electric sign with a very small LED attached.

-You can attach small LEDs in micro units on the board. At this time, the board only needs to be mounted with a simple pattern, making it easier to configure compared to other methods.

-If a pattern is placed on a flexible substrate and a micro LED is attached on it, it becomes a flexible display.

-OLEDoS

-Manufacturing ultra-precision driving layers with semiconductor substrates.
-So, very fine pixel control is possible.
-Instead of using a semiconductor substrate, the size is small and expensive.
-If OLED is deposited here (WOLED + Color Filiter), OLEDoS is completed.
-The above explanation is a LGD blog post, so it says that WOLED+ Color Filter is applied, but eMagin seems to be a direct deposition rather than a color filter.

 

-OLED(Rigid)

-Existing OLED uses a substrate with TFT on top of a glass substrate as a driving layer.
-Because it uses a glass substrate, it is possible to produce large displays at a low price.
-However, a low-temperature process is required to put the TFT on the glass substrate.
-So, the pixel gap is wide compared to the semiconductor process, which is disadvantageous for high resolution.
-OLED is deposited here to complete the display.

 

※Stock price, income statement, statement of financial position, statement of cash flow

eMagin is listed on the NYSEAMERICAN exchange.
$55 million market cap = 71.5 billion won
The stock price rose sharply during the Metaverse boom in 2021 and then fell again.

 

It is a loss-making company that has recorded approximately $20-26 million in sales/net income of -5-10 million annually for five years.

In the most recent quarter, sales were $7 million/slightly in the black or in the red.

As of the latest quarter's balance sheet, total assets of $58 million, total liabilities of $39 million, and total equity of $18 million.

In fact, there is no book value. As the deficit has recently decreased significantly, concerns about additional
capital increase are unlikely to be significant.

According to the quarterly cash flow statement, the company is consistently making $4-5 million in funding and $4-7 million in investments each quarter. The operating loss is similar to net profit. It is a company that continuously invests a lot, but it is receiving procurement steadily.

 

※Investor Presentation – November 2021

 

Vision:Enable the visualization of digital information and imagery with OLED technology

Luminance = Brightness.

AR/MR is widely used in military and aviation for simulated virtual training. It seems to be a bep with a firm market position in this market.

The consumer market is blooming now, and working with Apple could be a huge opportunity.

※Sales composition

• 85% of product sales, 15% of contracts
• 56% US, 46% International
• Service in 30 countries

As it is an American company, the US is the main market, but half of it is going global and providing services to 30 countries.

It plans to expand its presence in commercial, medical, and industrial fields by utilizing its experience in the existing military/aerospace market.

※Operation Trend

• Continued supply of Enhance Night Vision Goggle-Binocular (ENVG-B) program display alone as it grows in size as well as other major military programs worldwide

• In December 2020, a 10-year lease was signed for 25% of the additional space to house new equipment.
Includes equipment purchased for the company's patented high-brightness dPd production

• As of the end of the third quarter, we have received delivery of 4 production facilities. Of the $39.1 million, $12.2 million was used for U.S. government funding. eMagin Strengthens Manufacturing Capabilities as U.S. Only Supplier of OLED Microdisplays

• Recognized by the U.S. Department of Defense (DoD) as the only domestic  manufacturer of OLED microdisplays and designated as a cornerstone of the U.S. manufacturing base

• Received $39.1 million in DoD funding for procurement and installation of capital equipment at the Hopewell Junction facility to enhance manufacturing capabilities and to sustain and enhance U.S. domestic capability for highresolution, high brightness OLED microdisplays based on proprietary dPd technology

 

Advantages of eMagin's MicroOLED Technology: Lowest Power, Highest Brightness

• Brightest OLED commercially available – monogreen with peak luminance over 40,000 cd/m2
• Full-color over 10,000 cd/m2 demonstrated
• Very high contrast – greater than 1,000,000:1
• Lower power consumption yields longer battery life
• More compact form factor
• Lightweight solution
• Field tested for reliability and performance
• Nausea-free operation
• Superior performance and a competitive cost at higher volumes

 

• Full-color SXGA OLED microdisplay
• First to develop 20k cd/m2 monochrome green in 2011
• First to develop 700 cd/m2 in full color in 2013
• Recent white with color filter displays exceed 1,500 cd/m2
• Demonstrated unique and proprietary full-color direct patterned 
dPdTM microdisplay of over 10,000 cd/m2

 

※Comparison with smartphone OLED

OLED Cell Phone Display ~600 ppi
eMagin OLED Microdisplay >2,500 ppi

 

The Future of AR/VR Powered by dPd™

Conventional OLED microdisplays use white OLED with color filters
• Color filters absorb ~80% of the useful light; limited brightness and inefficient
• Only eMagin has Direct Patterned microdisplay technology for direct emission of red, green and blue light 
without color filters
• Enables significantly higher brightness; targeting 10,000 cd/m2 at year end and 28,000 cd/m2 by 2023
• Higher efficiency, much lower power consumption
• eMagin is ahead today in full-color OLED microdisplay brightness and will stay ahead with dPd

 

Patents 
• 56 patents issued and 31 pending
• Includes silicon backplane, OLED architecture, process and packaging
• Key patents include ultra-high brightness directly patterned OLEDdisplays

 

Know-how
• Includes silicon backplane, OLED architecture, process and packaging
• Back-plane design
• Anode patterning
• Direct patterning of OLED
• Thin film encapsulation
• Packaging methodology

 

※Military and Aviation Business

 medical imaging devices, veterinary ultrasound viewers, thermal cameras and hunting scopes

※ The AR/VR display market predicted by DSCC (Display Research Agency)

-OLED on Silicon (OLEDos, SiOLED) will overtake LCD and become the number one in 2025.
-AMOLED will lose popularity in the AR/VR market. There is a limit in pixel density.
-AR/VR display sales will grow from KRW 0.3 trillion in 2020 to KRW 4.2 trillion in 2026 (CAGR of 51.6%)

※ Advantageous location to take advantage of large-scale commercial and consumer opportunities

Augmented reality for 
• Equipment repair
• Factory automation
• Service technicians

 

✓ Virtual reality for
• Vehicle design
• Training and simulation
• Consumer gaming and entertainment

 

✓ eMagin is the only company with technology that satisfies the key 
requirements:
• High brightness
• High speed
• High pixels per inch
• High resolution

 

Hopewell Junction, NY (Headquarters)
• Houses own equipment for OLED microdisplay fabrication, assembly operations, R&D and product development functions
• eMagin is the only US-based manufacturer of OLED microdisplays
• Approximately $39 million in DoD awards for procurement and installation of capital equipment to enhance manufacturing and enhance dPd technology

Experienced Management Team of Recognized Industry Experts

♬The above article was also published on https://t.me/timesight.