Elliptic Labs (ELABS) Investor Update summary

Strategic platform evolution and product innovation

• AI software platform leverages existing device sensors to enhance user experience, focusing on making devices smarter and greener without hardware dependencies.

• Over 500 million devices now use the AI Virtual Smart Sensor Platform, with rapid scaling in both smartphone and laptop markets.

• Core technology has transitioned from proximity and human presence sensors to new functionalities like the AI Virtual Seamless Sensor, enabling contextual intelligence and enhanced productivity.

• Deep integration with chipset manufacturers and strategic partnerships with Qualcomm, MediaTek, and major OEMs create high entry barriers and enable embedding at the hardware level.

• Platform is backed by several hundred patents, ensuring a strong IP position and ongoing innovation.

Key partnership and market positioning

• Collaboration with Lenovo has expanded from initial contracts to a major launch of Smart Share on the ThinkPad X1 Carbon Aura Edition.

• Smart Share enables seamless picture and file transfer between smartphones (Android and iOS) and Lenovo laptops using the AI Virtual Tap Sensor.

• The solution is marketed as an "AirDrop killer," aiming to attract users seeking Apple-like interoperability on non-Apple devices.

• Lenovo's focus is on creating a competitive ecosystem to retain and attract users, especially younger demographics heavily using iPhones.

• Joint marketing efforts and positive retail feedback highlight the strategic importance of this feature for Lenovo.

Technology and deployment details

• The AI Virtual Tap Sensor uses a combination of multiple laptop sensors and advanced machine learning for accurate detection, not dependent on ultrasound but on sensor fusion and multimodality.

• The solution can reside solely on the laptop, supporting various apps and use cases beyond picture sharing, including accessories like mice connecting via tap.

• Pricing power has increased as the offering moves beyond hardware replacement to enabling new capabilities and interoperability.

• No exclusivity with Lenovo; open to partnerships with other OEMs, with expectations to launch with additional manufacturers.

• The platform is moving up the software stack, enabling new use cases such as contextual intelligence and enhanced productivity.