Strategic Investor
Presentation
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Presentation contains forward
looking statements
Certain statements in this presentation constitute forward-looking statements
or statements which may be deemed or construed to be forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. The words "forecast", "anticipate", "estimate", "project", "intend", "expect",
"should", "believe", and similar expressions are intended to identify forwardlooking statements. These forward-looking statements involve, and are subject to
known and unknown risks, uncertainties and other factors which could cause
TrueVision’s actual results, performance (financial or operating) or achievements
to differ from the future results, performance (financial or operating) or
achievements expressed or implied by such forward-looking statements. All
forward-looking statements attributable to TrueVision herein are expressly
qualified in their entirety by the abovementioned cautionary statement.
TrueVision disclaims any obligation to update forward-looking statements
contained in this presentation, except as may be required by law.
2
Agenda

TrueVision Overview

Current status/future outlook

Industry benchmarks
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Financial Projections
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Milestones and Management
3
The 3D Trend
 3D in movies
 3D in consumer
electronics
 3D in surgery
 TrueVision® is the
“Avatar for surgery”
James Cameron’s 3D Avatar goes over
$2 billion at the box-office surpassing
Titanic
TrueVision® is Changing Microsurgery
Like CT, Endoscopy, MRI, Robotic Surgery, and Ultrasound before us, TrueVision® is
using digital imaging technology to deliver better medicine.
The old way to perform
refractive cataract surgery …
TrueVision is the new way!
5
TrueVision® Digital 3D HD Product Evolution
“Heads Up” microsurgery
Visualization only
Class 1 FDA device
Retrofit to microscope
Pre-op planning and
Intra-op guidance templates
Visualization and Guidance
Class 2 FDA device
Future Platform
“TrueScope”
Replace the Microscope
Additional tools include 3D HD Recording, Editing, and Playback hardware and software.
TrueVision® Intelligent Visualization Platform
®
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TrueVision® vs. Surgical Microscope
Last Analog Imaging Device in Medicine
Proprietary and Confidential
8
Working prototypes of TrueScope ®
(microscope replacement)
Look under- 700mm WD
TrueScope Review – July 2010
CONFIDENTIAL AND PROPRIETARY
Look over- 180mm WD
9
TrueVision® Refractive Cataract Guidance Tools
Astigmatic Correction & Premium IOL Guidance
(FDA 510K clearance December 2010)
Cut by Numbers
•
•
•
•
Incision Templates for LRIs
Built-in nomograms
Correct for cyclorotation
True horizontal and vertical
alignment
Digital Protractor
• Precise alignment for Toric IOLs
• Improve accuracy of angular
measurements
• Correct for surgically induced
astigmatism
10
Early Clinical Results Are Positive
Data received from 4 investigators
50 patients completed follow-up
At 6 weeks 85% LRI success rate
<.5 diopter
Our success goal is >65%
Current standard of care is <50%
100% of eyes had Capsulorhexis diameter
of 6mm or less
11
Retrospective Analysis of 3D HD Visualization vs.
Conventional Oculars During Routine Cataract Surgery
 Method:
 Analyzed consecutive cases from adjacent OR for a single surgeon
 Routine cataract cases using two methods of visualization
Visualization Method
# of Eyes
Unplanned Vitrectomy
TrueVision 3D
®
293
0.35% (1)
Oculars
461
1.09% (5)
 Results:
 Overall Vitrectomy rate (complications) is less with TrueVision®
 The gap is widening – TrueVision® performance advantage is now 3x
Proprietary and Confidential
12
Intellectual Property Portfolio
Stereoscopic On-Screen Surgical Microscope Systems-- issued Feb 1999 USPN 5,867,210
Stereoscopic Image Acquisition Device-- filed October 2005
USPASN 11/256,497
Stereoscopic Electronic Microscope Workstation-- filed Jan 2007USPASN 11/668,400
Stereoscopic Electronic Microscope Workstation-- filed Jan 2007USPASN 11/668,420
Stereoscopic Display Cart and System filed April 2007
USPASN 11/739,042
Apparatus and Methods for Performing Enhanced Visually Directed Procedures Under Low
Ambient Light Conditions, filed April 2008
USPASN 12/417115
Real-time Surgical Reference Indicium Apparatus and Methods for Surgical Applications, filed Oct.
2008
USPASN 12/249845
Real-Time Surgical Reference Indicium Apparatus and Methods for Intraocular Lens Implantation,
filed February 2009
USPASN 12/390388
Real-Time Surgical Reference Indicium Apparatus and Methods for Astigmatism Correction, filed
Oct ’09
USPASN 12/582,671
Real-Time Virtual Indicium Apparatus and Methods for Guiding an Implant into an Eye, filed Feb
2010
USPASN 12/714,322
Numerous additional patent applications have been filed during 2010.
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Key Opinion Leading Surgeons Agree…
“Emerging 3D visualization and guidance technology like TrueVision is expected to positively affect
patient outcomes across many surgical disciplines. It will potentially have a broad and long range
impact in ophthalmology.” Eric D. Donnenfeld, MD, FAAO, FACS and founding partner of
Ophthalmic Consultants of Long Island
"The Refractive Cataract Toolset from TrueVision is rapidly becoming one of the most critical
components of my surgical suite. This latest innovation will provide surgeons the confidence to
expand their participation in the premium channel while delivering increased predictability and
precision.“ Mark Packer, MD, FACS, Clinical Associate Professor, Casey Eye Institute, Department of
Ophthalmology, Oregon Health & Science University and Drs. Fine, Hoffman & Packer, LLC Eugene
“Showing cataract surgery in TrueVision 3D improves patients’ understanding about their
procedures. It reduces anxiety allowing them to focus on treatment options and expectations. For
my practice this resulted in a 33% conversion rate (vs 10%) in refractive cataract procedures.”
Robert Weinstock, MD, FACS, High Volume Ophthalmologist, Eye Institute of West Florida
"As both a practicing surgeon and user of image guided spinal navigation I see the enormous
potential for 3D HD visualization in the operating room. I anticipate that TrueVision 3D technology
today will dramatically enhance numerous types of surgical procedures and in the future
potentially improve patient outcomes through better visualization and intelligent 3D surgical
software applications.“ Kevin Foley, MD, FACS , Professor of Neurosurgery at the University of
Tennessee, Memphis, active entrepreneur, leading Medtronic royalty recipient
Cataract Surgery Market (USA)
• 3.5 million cataract procedures / year and growing
•10-12 million ophthalmic microscopes installed
•Currently 15-20% cataract patients upgrade to premium IOLS
3-5% Toric lenses
2-3% Crystalens
10-12% Multifocals
• 65% of patients have astigmatism >.5d:
refractive post-surgical target is < .25d
• Currently only 35-40% of ophthalmic surgeons perform
premium IOL surgery, with 20% performing 80%.
• 3D HD & surgical guidance templates change the game.
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TrueVision® Addressable Markets
• Ophthalmic surgery
• Cranial surgery (using a microscope)
• Spine micro-surgery (using an microscope)
• Reconstructive Plastic Surgery (using an microscope)
• Any surgery where intra-operative guidance templates and
3D HD visualization can improve clinical outcomes
®
Note: TrueVision today sells 50/50 in Ophthalmic and Neuro
micro-surgical applications, with strong focus on refractive
cataract and sight improving IOL implantation.
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Current Status
 Increasing demand with high customer satisfaction
 Bookings:
$700K Q2,
$1M Q3,
$1.2M Q4
 40+ TrueVision systems sold and installed
 Current 80% gross margin on system sales
 Clinical results are very positive 86% efficacy vs. less than 50%
without the TrueVision 3D HD system
 510k filing with FDA clearance for Cataract Toolset in Dec 2010
 China JV with The WeiGao Group
 Maintain conservative spending, with 40 employees, including
consultants, part time and FTE.
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Future Outlook
 Bookings are forecasted to be $6.5M in 2011 and doubling in 2012 and
beyond
 Expect positive cash-flow late 2011.
 Large medical device companies are increasingly interested in
TrueVision (acquisition, investment, licensing, distribution). Currently
engaged in a diligence process with the largest ophthalmic company.
 Continued difficult economic climate in US in medical equipment
 Unprecedented growth opportunity in China next 5 years, utilizing
our Joint Venture with The WeiGao Group
 Improving healthcare will be a long term focus and an attractive
investment space with exceptional valuations
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®
TrueVision
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2004-6
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2007
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2008
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2009
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2010
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History and Milestones
Founded by Michael Weissman, PhD ($400k friends & family)
Prototype complete
CEO Forrest Fleming hired
FDA Class 1 Registration – First OR trials, first systems manufactured
Angel Funding, $5M raised
First issued patent: USPTO 5,867,210
First Software Application: 3D HD recording
Over 3000 microsurgical procedures completed
Validate/preview refractive-cataract toolset at AAO in November 2008
$5.0M capital raised (60% new investors)
$1.7M Bookings(visualization/capex)
Positive preliminary clinical Studies results by AAO (November)
$3.4M Bookings(visualization/capex)
Class 2 510k FDA approval for Cataract Surgery Toolset
China JV with WeiGao Group (45% stake)
Angel funding totals $11M raised to date
Top-Flight Management Team and
Advisors
Intellect + track-record + motivation = Success
Early Stage, Medical Device experience
• Management Team
• Board of Directors
• Clinical Advisors
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WeiGao
TrueVision JV
To commercialize TrueVision in China is a
big opportunity
JV Agreement signed Sept 2010
Hospital 301 Beijing
Weigao contributes capital for 55% stake
TrueVision contributes Technology for
45% stake
Eventually will manufacture TrueVision
Hardware in China for China. Software
remains most important IP.
Robert Sun, Forrest Fleming with Chairman Chen Xue Li
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®
TrueVision
Profit and Loss
Projections
Year
Bookings
Recurring
Revenue
Profit
Before tax
2009
$1.7MM
0%
($2.5MM)
2010
$3.4MM
0%
($3.2MM)
2011
$6.4MM
6%
$(1.4MM)
2012
$16.1MM
23%
$3.3MM
2013
$30.7MM
33%
$7.5MM
**Comparable companies (Intuitive Surgical :ISRG, Intralase) suggest exit valuations at 8-12x revenues
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TrueVision-LenSX Comparison
LenSX was acquired by Alcon for $360-720M in July 2010
LenSX
TrueVision
$15,000,000
$30,000,000
$10,000,000
$25,000,000
$5,000,000
$20,000,000
$(10,000,000)
$(15,000,000)
$(20,000,000)
$15,000,000
LensX Gross
Margin (cash in)
LensX Expenses
(cash out)
TVS Gross
Margin (cash in)
$10,000,000
TVS Expenses
(cash out)
$5,000,000
TVS Cash
Position
LensX investment
Needed
$-
2006
2007
2008
2009
2010
2011
2012
2013
$(5,000,000)
2006
2007
2008
2009
2010
2011
2012
2013
$-
$(25,000,000)
$(5,000,000)
$(30,000,000)
$(10,000,000)
$(35,000,000)
$(40,000,000)
$(15,000,000)
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Intuitive Surgical (ISRG)
Exit Benchmark
Robotic 3D Endoscopy (daVinci)
3D visualization+robotics =improved outcomes
initial market for removing prostate cancer
Started Cap-ex then shifted to per procedure revenue model
Started 1994 (Computer Motion started 1989)
IPO June 2000 (10 to 330 $/share…30x in 9 years)
Intuitive Surgical merges with Computer Motion March 2003
Prostate procedures became killer application in 2004/05
Now includes Hysterectomies
Revenue/profits history
2009 revenues/net profit of $980M/205M
2008 revenues/net profit of $874M/204M
2007 revenues/net profit of $600M/144M
Current $12B Market Capitalization (58P/E ratio; 12x revenues)
$100M total investment..100x times return on investment in 12 years
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TrueVision Investment Advantages
• Demand for better healthcare is increasing and remains an
attractive investment space in both the long and short term.
• Profitable two-tier revenue model (Capex + procedure fee) has
successful precedents (both with greater than 80% gross
margins)
• First mover position with multiple barriers to entry (including
issued patents) makes TrueVision an attractive acquisition –
current optical methodology cannot compete
• Early revenue stage in 2009 and enthusiastic response by KOLs
and industry players (AMO, Medtronic, Zeiss, Leica, etc.)
shows validation
• Minimum future dilution. Attractive medical device multiples
on exit
Thank you