FiEE, Inc. Q1 FY2021 earnings call

• Merged with Zoom Telephonics and rebranded to Minim, combining proprietary AI-driven software and market-leading home networking hardware. • Delivered strong Q1 results with third consecutive record revenue quarter, gross margin expansion, and activated subscription software revenue strategy with deferred software subscription revenue. • Last of material merger-related expenses in the past quarter; focused on managing costs for profitability in 2021. • Expanded credit facility to $13 million with Silicon Valley Bank to invest in inventory. • Launched three new Motorola products in Q1, including ultra-fast MG8702 and MB8611, and announced Wi-Fi 6 product family. • Added B&H, Staples, Barnes and Noble to direct-to-consumer retail partnerships; Motorola became number one brand in Amazon for cable modems. • Monitored chipset supply challenges, planning component orders with longer lead times, diversifying supply chain, and managing BOM costs. • Product strategy focuses on transformational brand, software with world-class UX, and leveraging latest technology for value creation.

Minim delivered record revenue of $15.0 million in Q1 2021, a 26% year-over-year increase. Gross margin was 34.0% for the quarter, an 810 basis point improvement from Q1 2020. For the first time, deferred software subscription revenue was reported. Revenue bookings were $15.3 million, including $15.0 million in recognized revenue and ~$265,000 in deferred revenue from software service sales.

• Target to achieve profitability in 2021. • Intend to bring on five new retail channels with focus on home goods and new geographic markets. • Launch Motorola Wi-Fi 6 products family and next-generation Motorola app; plan broadband performance testing suite for U.S. ISPs. • Complete legal name change to Minim Inc. and apply to uplist to NASDAQ Capital Market. • Focus on employee acquisition and retention for hybrid work model.

• Chipset supply challenges, including temporary pricing premiums and subsequent BOM cost increases. However, believe BOM cost increases are manageable with cost levers to protect margins.

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