What is this Offering about?
Coherix is raising $15 million through the sale of common stock to fund the next stage of growth.

Who can participate in this offering?
This Offering is open to the general public.

Why now?
Coherix’s business is growing. Purchasing shares at today’s Offering price of $6 is a direct way to participate in that growth.

Who is Coherix?

  • Founded 15 years ago – a machine vision company specializing entirely in 3D (three- dimensional) imaging. 3D machine vision is a critical enabling technology for the next stage of manufacturing.
  • First 10 years – development and proving the software and 3D sensor platforms. Achieved significant advances in our technology through collaborative research and a development project with the largest OEM in electronics.
  • Past 5 years – Identifying first hot product: Predator3DTM
    • Developed to meet customer requirements
    • Tighter tolerance requirements
    • Not susceptible to ambient light or if the color of the part changes
    • X, Y and Z axis measurements – measure what matters for process control
    • Next products – Robust3DTM and Saber3DTM – are ready for launch
  • Next 5 Years – Develop and expand market penetration and continuously improve existing products, and develop new products for new markets.

What is Predator3D?
Predator3D is our first product to ship in volume with multiple repeat purchases from many buyers.

  • Rides on the robots that dispense structural adhesives
  • Structural adhesives are rapidly replacing welding as manufacturers use more dissimilar materials to reduce weight and improve safety (joining aluminum, carbon fiber and highly engineered plastics)
  • Predator3D helps guide the robot in real time and assures the right adhesive volume is dispensed in the right location (X, Y & Z error-proofing)
    • Catches mistakes immediately, reducing downtime and scrap
    • Compensates for part variation on-the-fly to ensure proper application
    • Immune to ambient lighting and can measure similar colors – reduces false reject rates and false pass rates, reducing scrap and increasing quality
    • Detects any dispensing nozzle skipping or “neck downs,” which lead to faulty adhesive application

What are the current markets for Predator3D?

  • Any industrial application where an adhesive or sealant bead larger than 1mm is being dispensed by an automated system. So far, we have made inroads in the automotive and electronics industries.
  • Two companies own 60 percent of the worldwide automotive dispensing equipment market. Predator3D is shipping in volume to both for use by the dominant automakers based in Japan, Germany, the U.S. and China.
  • Future markets – consumer electronics (smaller bead), semiconductor, medical, apparel, aircraft and more.

Are the shares of stock being offered to the public through this Offering restricted in any way?

No. Shares purchased through this Offering will be unrestricted common stock and will be freely tradable upon purchase. However, until our stock is supported by market makers and is trading on a national electronic stock exchange, which is our intent, the ability to sell shares purchased in this Offering will be significantly limited by illiquidity.

Prior to this Offering, Coherix raised $36 million via the sale of restricted stock and other securities to approximately 165 accredited investors. These restricted securities will not be freely tradable until our stock is listed on a national exchange and their securities have been registered.

If I already have restricted shares of Coherix stock, can I sell them in this Offering?
Not at this time. Coherix shares purchased in a private transaction will need to be registered first and can then be sold through a national exchange once they are listed.

When do you expect to achieve a listing on a national exchange?
There are no guarantees we will achieve a listing on a national exchange; however, Coherix will apply for a NASDAQ listing as soon as we have quarter-by-quarter predictable results.

What will you use the $15 million for?
The $15 million raised via this Offering will primarily be used to expand global sales and marketing teams to accelerate our market growth. Funds will also be used for continuous product improvements to keep Predator3D ahead of competition (R&D), debt restructuring and retirement, and general administration and working capital.

What do you expect the total opportunity to be?
A high level analysis of the opportunity for Predator3D in automated adhesive dispensing in the auto assembly sector suggests there is much room for growth. Starting with total automobile production data from OICA.org, which suggests that 97+ million vehicles were produced in 2017, and conservatively estimating the production capacity of the average assembly line to be 250,000 +/- 20 percent, based in part on data from Automobilemag.com, we can apply the number of adhesive dispensers per specific type of assembly line (five per powertrain and general assembly lines; 20 per body shop assembly line) and extrapolate a global auto total addressable market (TAM) of about 33,000 adhesive dispensing units or $650MM worth of Predator3D vision systems possible.

What is Coherix’s primary long-term goal?
From day one, Coherix management laid out its goal of building what was described to early investors as a “high-five” company. In doing so, we also clearly set out what these characteristics would be:

  • Rapidly growing: greater than 30 percent year over year
  • Minimum 70+ percent gross margin
  • Large – minimum annual revenue of $100 million
  • Global presence
  • Publicly traded

We continue to strive toward these goals, and this Reg A+ Offering is a step in that direction.