A Voice-User Interface device for kids called the SmartCreature

Siliconic Home, Inc. an IoT company

Headquarters: San Jose, CAFebruary 2016

Siliconic Home, Inc. believes that Future smart home IoT products will require the use of advanced speech recognition software and hardware.

We will be introducing the most advanced smart IoT products targeted for young children as well as other household members.

Our Vision

Confidential Siliconic Home

Our first product, SmartCreatureTM (SC), is a smart, connected voice-user interface device for children. The SC platform connects to music, stories, educational content, Google Search, IoT devices and other communication devices.

Our Platform and First Product


Who we areTim R. Connelly, CEO/CFO: 25+ years of tech management. Co-founder, Filac and InterFile. CEO, EasyWare Software. CFO, World Procurement. MIT, BSEE; Stanford, MBA with honors.

Maura Sparks, Vice President: 15+ years of tech experience. Co-founder Pop Rocket & Kissappgames. Paracomp (acquired by Macromedia/Adobe). Branding, product strategy, product marketing, events and PR. SF State University & Dominican University.

Onkar Sangha, CTO: 25+ years experience CTO/Architect. Mobility Fusion: Acquired by Philips Semiconductor. VP System Engineering, Infiniti Networks; VP Software Engineering, Ishoni Networks. Partner, ServoBridge. University of British Columbia, BSEE & BS Physics.

Jeff Adams, Advisor/ Chief Science Officer (Acting): 20+ years in speech & language. Led speech scientists for Amazon Echo, Yap, Nuance. Partner at Cobalt Speech. Brigham Young University, BS summa cum laude, University of California at Berkeley, MA.

Alan Toyomura, VP of Business Development: Senior Business Development Manager at Sprint. QOS Engineer at Ford Motor Company. Purdue University, BS in Industrial Management/Physics; University of Michigan, MBA.

SmartCreature Mock-up

Model SC100 (Listening angle: 90-180 Degrees)

Height: 10 inches

Battery powered

Wi-Fi Connected“Always On”


The SmartCreature has voice-user interface (VUI) allowing your child to have their very own smart room; brings your favorite internet features into your home using just your voice

Fits Well in A Child’s Bedroom


Connect to your other IoT devices (Wi-Fi speakers); play your favorite music; all hands-free and start

dancing!

Info searches for definitions, meanings and facts; note taking, diary and other voice-to-text uses

Wake up with a customizable alarm;control your room, turn on the lights

Benefits every child - morning until bedtime

Foreign language audio learning; stream audio books; ideal study helper

SmartCreature Competitive Advantages• Juvenile ASR for children as young as 5

• “Far Field” functionality - up to 15 ft (5 m) range

• Unique H/W and S/W combination for noise reduction (patentable spatial filtering technology and digital signal processing)

• Initial platform releases will utilize device-side ASR (reduces Cloud processing costs over product life; customers are not charged for ASR)

• Portable/battery powered

• Able to have some local function without Internet connectivity

• Open-platform to allow selected 3rd party service and content providers to participate in revenue sharing programs


Front-end Servers & Master S/W Apps

Telephony Servers and

S/W

SH Managed Cloud Servers and Cloud S/W

SH Proprietary ASR Engine and S/W

Google Voice Search

Servers and S/W

3rd PartyService

ProvidersWeb Servers

and S/W

Wi-Fi Router

Other IoTDevices

Internet Cloud

SmartCreature (SC)

Parental control

dashboard

Siliconic Home Platform

Typical Customer Home


Intellectual Property in orange:1) ASR/NLU software 2) Noise Reduction far-field3) Child-centric interactivity M2C4) Cloud ASR operations in background

Competitive Product MatrixConnectivity/Cloud ‘Intelligence’

Standalone/Unconnected

Entertainment

Education and

PersonalAssistant

Blue Frog

Speak ‘n Spell Type

Toys

Traditional Talking

Toys

Hello Barbi

eDino

SC200

SC100


SC Model

Sales Channel

End-userCustomers

SC100Genera

l

OEMSCXXX models

Retailers: Brightstar, Best Buy, electronics, audio and specialty stores, Target, Toys ‘R Us

Direct Sales(eCommerce)

31 million US children* in 5-13 year age rangewith home Internet connectivity (all incomelevels)

OEM Partners/Customers: Major toy, consumer electronic, educational and entertainment companies

Existing and new OEMcustomers

SmartCreature Sales Strategy by Channel

* 21 million householdsConfidential Siliconic Home

US Market● US target- children 5-13 years old

in Wi-Fi households: 31 million (2015)*

● Adoption rate range* for disruptive or major technologies: 5.0% to 7.0% per year

● Annual sales potential of SC100 or SC200 type products: 1.6 to 2.2 million units or $240 to $330 million/year @ $150 ASP, 1 unit/child

*16.4 million children were in households interested in buying a SC100 type ‘system’ within 2 years from product launch

US Market and SH Sales Forecast

1. The Market/Industry Sales and Company sales do not include services revenue

2. SC200 is 2nd generation SmartCreature with all of SC100’s features and more

SC100SC200


Premium Content and ServicesRecurring Revenue Categories

FY2017 FY2018 FY2019$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$0.10

$4.00

$31.70

Annu

al P

rem

ium

Con

tent

/ Se

rvice

s (Mi

l.)• Native language educational content

• Foreign language educational content

• Entertainment: music, stories & books

• Audio games & jokes

• VoIP (Telephony)

• Other premium content

Premium Content & Services


Financials- Pro Forma Income Statement

FY2016 FY2017 FY2018 FY2019

SC100 Units 5,144 33,750 264,000 504,000SC200 Units 500 60,000 150,000Revenue, Product $742 $5,940 $55,902 $153,839Revenue, Services $109 $4,035 $31.673Revenue, Total $742 $6,049 $59,936 $185,513Gross Profit $279 $2,604 $23,942 $90,908Expenses $2,803 $9,592 $21,642 $36,875Net Profit Before Taxes ($2,524) ($6,987) $2,300 $54,043

Notes:1. Dollars in thousands. 2. FY2016 Uses of cash funds: R&D (66%), Marketing/Sales (18%), G&A

(16%)3. Earliest FY2016 start contingent upon Seed funding 4. Product Revenues include ‘Future Products’ as follows: FY2018: $2.1

million; and FY2019: $45.1 million. 5. Reference Financial Model: fin26


The SmartCreature is a Wi-Fi connected hands-free device that brings your favorite Internet features into your home using just your voice

Selected Target Partners


Investment Opportunity

Year 0 financing targets:

Seed* $1,950,000 (FY2016/Q1/Q2)

Crowdfunding (Net Cash in) $742,000 (FY2016/Q4)

Series A equity financing: $10.0 million (FY2017/M1)

Series B equity financing: $10.0 million (FY2018/M1)

Liquidity event/exit strategy: acquisition by a major firm (> FY2018)


*Convertible Notes will be used. $50,000 investment to date (1/1/2016).

For more information, please contact:

Tim Connelly, mobile: 408-608-7497office: 408-866-8010

email: [email protected]

Siliconic Home, Inc.Headquarters: San Jose, CA

“Great things in business are never done by one person, they’re done by a team of people.” Steve Jobs

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A Voice-User Interface device for kids called the SmartCreature

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