Interlink Electronics, Inc. Common Stock LD Micro 20th Annual Main Event Conference

Thank you. Is my dues going to go up?

Somewhere in the winter. I feel like my presenter fee is going to double now.

30% 30% higher. Inflation. Okay.

Well, thank you very much, Chris, and thank you everybody for attending my presentation. I am here to talk about Interlink Electronics. We are listed on NASDAQ under the symbol LINK, L-I-N-K. Please don't get confused with Chainlink. We have no relationship to Chainlink. We are a global sensor, printed electronics, engineered solution organization with a very rich history. Our forward-looking statements, you probably have seen these before, but everybody talks about KISS, keep it simple, stupid. I try to relate to it as the four S's. Do we have a sound strategy? I believe we do. We are executing on a roll-up within the sensor, printed electronics, and engineered solutions space. Sensors are very relevant. We are going to talk about it. I believe everybody in this room heard about data analytics and AI. Without sensors to capture that information, you have nothing to process. Successful track record. Interlink, I initially got involved to execute a turnaround that was successful.

We were consistently profitable, and then about four or five years ago, we kicked off this bigger global M&A strategy to do a roll-up within the sensor space. Skin in the game. To date, I am the largest single investor in the company. I have millions invested and directly, indirectly control over 76%, 77% of the shares outstanding. Sexy factor. Are we relevant? I think it goes back to the point that I talked about AI, data analytics. You need sensors to capture that information. I like to refer to us as the picks and shovels of this revolution we are seeing. We are a fully integrated organization. We don't rely on any outside parties to support our customers. Our customers range from Fortune 500 companies to high-growth product and technology solution companies.

We support that by being fully vertically integrated. We do everything from prototype, design, manufacturing, and we really focus on supporting our customers and positioning ourselves as a trusted advisor. As we expand our technology portfolio, we can deliver more to our end customers. IP, we currently have 49 patents. We have 14 pending. Technical capabilities. Everything's in-house, the firmware, the software capabilities, mechanical, electrical engineering, chemistry, because everything we're doing is dealing with different types of materials, whether it's substrates, inks, and delivering the complete solution from a sensor standpoint. Global footprint. We're headquarters in Fremont, California, and we have operations in China, Hong Kong, which is part of China, Japan, Scotland, England, and here in the U.S. The company has a rich history. It was founded in 1985.

We invented force-sensing resistors, which is a type of sensor technology that detects physical force or pressure. Who in this room has an iPhone or an Android device? I think I covered almost everyone, right? When you touch your phone, that's capacitive. That's detecting touch. Our roots of the company is we invented force-sensing resistor that detects physical force or pressure. The user can be wearing a glove. It works in a positive 85 C to a minus 40 C. You could spill liquid on it. It works in a harsh environment. Our core technology and our core roots brings us to a position that we are really good in industrial-type rugged applications, and the success we've had around FSRs has been very broad. Our technology today, our FSR technology's in all Panasonic fully rugged Toughbook models.

They use our rugged touchpad solution, our VersaPad solution for the benefits that I described, including its low power consumption. Unless you're engaging our force sensing technology, it's not draining power. When I got involved, I successfully turned the business, consistently generating profits around the force sensing, and then there was this bigger opportunity that the world of sensors, printed electronics, is very fragmented, and we kicked off our first two acquisitions, two affiliated companies in the gas environmental air quality sensing in December of 2022, KWJ Engineering and SPEC Sensors, that had a 25-year track record in that space and a really core team in Silicon Valley.

Three months after that, we acquired Calman Technology in Scotland for two reasons, product expansions, revenues, earnings, but also we were looking for manufacturing diversification because all of our manufacturing for force sensing was in China, and we wanted to have diversification. The same process that Calman uses to manufacture membrane keypads, you can produce force sensing resistors. Then in December of 2024, we acquired Conductive Transfers out of administration, which is the U.K. equivalency to bankruptcy. We bought the assets very attractively, and then we reassembled the core team and just recently launched that operation in a very strategic center near Sheffield University in an advanced manufacturing park where we have neighbors like McLaren, and we're working with those types of organizations leveraging Conductive Transfers proprietary technology around smart textiles.

In a very simple analogy, if you think of a decal on a jersey, we are able to create different sensing characteristics or properties within the ink formulation. We apply it to the substrate. We can peel and stick that to any textile and create a heating element. So without the wires, the ink formulation is creating the heating properties. You do need a power source, and then you have a hot surface. Part of our strategy, in addition to organic growth, is the M&A side. We focus on how we can add strategic technologies to our portfolio, and we have done that successfully to date. In addition, we look at the cross-selling opportunities. In two months, we will be exhibiting at CES in Las Vegas, and that is a great example of how we cross-sell because we have all of our technology offerings.

We are also going to be in electronica in Germany, which is the largest electronics technology trade show in Europe. We leverage as we add these different organizations from a cross-selling and marketing and also from a back office standpoint. If you think of a clearing firm, they can clear for 100 different investment firms. We are able to centralize the back office and some of the accounting functions so we can focus on the different business units to drive growth. Integration, we are very good. Sometimes it takes time, but we really focus on making sure we are doing what is best for the business and the big picture and not what is best in the short run. At times, we will sacrifice profitability to get to the end game. A perfect example of that is when we acquired KWJ Engineering and SPEC Sensors, it was somewhat of a turnaround.