Precision Optics Corporation, Inc. Common Stock Lytham Partners 2026 Consumer & Technology Investor Summit

All right. Good afternoon, everyone, and welcome to the Precision Optics Fireside Chat. My name is Robert Blum, managing partner here at Lytham Partners. Up next here, I will be moderating a Q&A discussion with Joe Forkey, Chief Executive Officer at Precision Optics. As a reminder, Precision Optics trades under the ticker symbol POCI on the Nasdaq. All right, let's get started.

Joe, welcome. Thanks, Robert. Nice to be here.

Absolutely. I always like to start off for those new to the company, give us a little bit of a high-level overview of the company, the markets you serve, and how the business has evolved.

Sure. As the name implies, Precision Optics, everything we do has something to do with optics. Generally speaking, we're working on imaging systems and communication systems. We are a technology company. What I mean by that is that we've developed some core technology in the area of optics, and we show that core technology to our prospective customers. If they and we agree that the technology that we have can enable their next generation product, then we work with them to develop their new product. When their product goes into production, we're the ideal partner to manufacture that product. The way that Precision Optics will grow is by having more and more programs go through this engineering pipeline into production, because typically these programs that we're involved with tend to be pretty sticky. They last for a long time once they get to production.

As we move more and more programs into production, we expect the overall revenue and size of POCI to continue to grow. We work mostly in medical device and we are moving more and more in the direction of doing more and more with defense and aerospace. In particular, we are doing a lot with satellite laser communications these days. In terms of optics, we work in three very specific areas that we focus on. One is micro-optics, where we make some of the smallest optics in the world. This can be used for making small endoscopes that can go places in the body you cannot go otherwise, and this helps with anything that is lifted off the ground, drones and satellites, in particular, the satellite communication, because of the small size and high precision.

The second area we focus on is ultra-high precision systems, so very high-resolution imaging, like ultra-high definition or 4K, as well as very high precision when you are doing things like aligning optical systems. When you are communicating one satellite to another, you have to have things aligned very precisely to send beams 400, 500, 1,000 miles. The third area we focus on is digital imaging, which is an area where we take the technology that has been developed, so-called CMOS imager technology for cell phones and laptops, and we use that same technology, combine it with our micro-optics or ultra-high precision to make very small endoscopes, to be able to make single-use and disposable endoscopes. The company has evolved over many years, but we are really at an inflection point today because we have two very large programs that have gone into production over the last two years.

We have built out our manufacturing side of the business over the last two years. Anyone who looks at our financials will see that our revenues have gone up quite dramatically in the last year. This is because of these two big programs, one in satellite communication, one in single-use endoscopy, that have gone into production over the last 12 to 18 months. It is a very exciting time for the company, as we see that part of our business model finally coming to fruition and starting to grow the company in a significant way.

All right, very good. At the company's core, what is it that the company does better than any other company out there? How can the same micro-optics and precision manufacturing capabilities serve both the device market as well as the aerospace market?

Yeah. The things that we do best are those three areas that I just outlined, micro-optics, ultra-high precision, and digital imaging. There is the core technology, which is technology that we have developed that other people just do not know how to do. Micro-optics is a great example. When I say micro-optics, we make some of the smallest optics in the world. The smallest individual optic that we have made is 50 microns, 5 0 microns, which is about the width of a human hair. The way that you have to handle these optics, the way you have to design a system that has components that are so small, you have to put them together under a microscope with special tools and fixtures. The way that you design those systems is unique, and you have to have experience in designing those systems.

The way that you manufacture those systems is unique, and you have to have people who are familiar with manufacturing systems that are that small. When you put it all together, the thing that we really do better than anybody else is go from the design phase all the way through to the mass manufacturer with all of the technology in each one of the areas that you have to string together in order to get a product that is ready to go to market. We have designers who know how to design the micro-optics that our manufacturing teams can then manufacture. We have a manufacturing engineering team that knows how to design and build the tools and fixtures that allow our manufacturing team to be able to build these things efficiently and cost effectively. It is really putting all of these pieces together that makes us quite unique.

It is the core technology combined with the capability of taking a product from the design phase all the way through to the mass manufacturer. Your question about how is it that we can use the same technology to enable some of the most advanced medical device equipment that is very small, that goes inside the body, how can we use that same technology on satellite systems that are launched by rockets up into space? At the end of the day, we are really application agnostic. What we have really built here, what the real value of the company is in the technology. Historically, we have really focused on using the core technology for medical device because there is a pretty clear application for really small, really high resolution, and that is endoscopy.

Going places in the body that you just could not go before was a natural application for these capabilities. Frankly, it sort of grew out of our long history in medical device, which we have been working in for many decades. We sort of advanced the technology following the advances in the medical device space.

What we discovered, however, and actually we discovered it by going to optics shows and having people from defense companies come over and see what we were doing, or from satellite companies come over and see what we were doing and saying to us, "Hey, we can use these technologies, these things that you're doing in some of the applications that we have." We've been addressing some very specific customers' needs over the last four, five, six years in both defense and in satellite communication, and we're just at a point now as we're growing and we have more marketing resources, we're able to go out and understand those applications a little bit better and go out and actively market into those communities.

At the end of the day, the thing that we can do is we can make optical systems that are smaller and more precise than anybody else in the world, and that small size and the high precision can be used both for medical imaging inside of the body, but also for systems like satellite communication, where you have to have small elements to be able to get it off the ground and not have extra weight on the rocket, and high precision to be able to point the lasers in the right direction to be able to communicate satellite to satellite.