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December 11, 2017

Technology Small Cap

Edgewater Wireless Systems Inc. YFI-TSXV: $0.69


A Multi-Lane Highway for Wi-Fi Watch List
N/A Target

Adding Edgewater Wireless Systems to our Watch List as a high-density Wi-Fi and Internet
of Things (IoT) opportunity: We are adding Edgewater Wireless Systems to our Watch List.
All figures are in C$ unless otherwise noted.

IoT Leads to Wireless Congestion: As the proliferation of smartphones and wireless devices
continues to grow, rates of data and video usage are also growing at an exponential rate.
This causes significant Quality of Service (QoS) issues as the result of increased bandwidth
usage and interference caused by multiple access points (APs) functioning within a
condensed geographic area. YFI is positioned to address these current and future
performance issues as well as offer differentiated Wi-Fi products to allow carriers and service
providers the ability to deliver diverse revenue generating applications and services.

WiFi3 Serves a Big Market: Verticals where YFIs solution would make a meaningful impact
are the $500B cable industry, $5.4B enterprise Wi-Fi market, $3.0B stadium/concert/public
space market, condo/high-rise market, and retail market. Of the latter, Edgewater has
publicly stated that it is engaged with a top 5 retailer.

IP Secured: WiFi3 works by splitting the 2.4GHz (or 5GHz) channel into three separate
channels, and routing information intelligently across these three separate channels. This
means that devices will compete less for bandwidth. And if necessary, WiFi3 is capable of
splitting each of those three channels into four more, creating 12 open pathways or lanes
for data. The Companys routers can work together to form mesh networks, each working
on different channels to avoid interference and creating a stronger overall network, solving
the interference problem as well. It has products designed for both indoor and outdoor
environments.
Milestones Achieved: YFI holds a rich patent portfolio of over 20 patents and has received
regulatory approvals in Canada, the US, EU, and Brazil.
Upcoming Catalysts: (1) Conversion of pilots into announced contracts; (2) Global OEM
design wins; (3) IP licensing deals; and (4) Commenced US listing process on OTCQB.
Exhibit 1 The Next Generation of Wi-Fi Infrastructure (WiFi3)

Source: Historicals Company Filings, Consensus


Data - FactSet

Source: Edgewater Wireless

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


Gianluca Tucci | 647.794.1926 | gtucci@echelonpartners.com Page 1 of 12
Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

Company Overview
Edgewater Wireless is based in Ottawa, Ontario, and is developing and commercialising technologies and intellectual
property for the wireless communications markets. Its flagship product lines are high-performance silicon solutions,
known as WiFi3, and a family of multi-channel Wi-Fi access points, which target high-density Wi-Fi applications in the
telecommunications, cable multiple system operator (MSO), large enterprise, and IoT markets. The market for Wi-Fi
has evolved and WiFi3 was designed to solve the triple threat to Wi-Fi interference, capacity, and density, which
are crushing Wi-Fi performance worldwide.

Technology Solutions
Edgewater Wireless WiFi3 powered access point technology can support an array of features that can be achieved
with its next-gen WiFi3 infrastructure, including:
1. Multi-channel radio architecture Offers up to three concurrent channels per radio, mitigating co-channel
interference;

2. Spectral Surveillance Architecture (SSA) (real-time, integrated spectral surveillance architecture) dramatically
lowers operational expense plus adds security;

3. Intelligence Channel Association (ICA) enables the operator to configure each channel to support different media,
i.e., voice video, data, or different levels of QoS, security, and output performance;

4. Load Balancing Enables the operator to offload heavily loaded channels to other channels. It offers integrated
dynamic load balancing across multi-channel radio architecture to deliver the highest QoS to the most users on
the network;

5. PowerZoning With independent transmit power control per channel, access points (APs) can be configured to
minimize inter-AP interference for APs that are deployed in proximity without compromising overall network
performance. It maximizes frequency planning and reuse to deliver a high performance, high QoS end user
experience with the highest channel density available.

YFIs competitors products rely on essentially the same single channel wireless radio chip to run their access point
products. As the proliferation of smartphones and wireless devices continues to grow, rates of data and video usage
are also growing at an exponential rate. This causes significant QoS issues as the result of increased bandwidth usage
and interference caused by multiple access points functioning within a condensed geographic scope. YFI is positioned
to address these current and future performance issues as well as offer differentiated Wi-Fi products to allow carriers
and service providers the ability to deliver diverse revenue generating applications and services.

Exhibit 2 Edgewater WiFi3 Technology Addresses Interference Mitigation

Source: Company documents

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


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Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

As more and more devices are connected to the IoT, data tends to overwhelm networks and create signal
transmission issues. Standard Wi-Fi provides service to every device on a network through a single channel on the
2.4GHz or 5.0GHz wireless bands, and typically only one device at a time. When you have a network with many
devices connected to the internet competing for data, quality of service weakens and it is common to have the signal
cut in and out (think of public Wi-Fi at an airport).

Wi-Fi3 works by splitting the 2.4GHz (or 5.0GHz) channel into three separate channels, and routing information
intelligently across these three separate channels. This means that devices will compete less for bandwidth. And if
necessary, WiFi3 is capable of splitting each of those three channels into four more, creating 12 open pathways or
lanes for data. The Company says that its routers can work together to form mesh networks, each working on
different channels to avoid interference and create a stronger overall network, solving the interference problem as
well. It has products designed for both indoor and outdoor environments.

Exhibit 3 Various Edgewater Product Offerings


EAP3030 3-channel WiFi3 AP INDOOR
The Edgewater Wireless EAP3030 is the multi-channel Wi-Fi access point with three concurrent channels in
2.4GHz.
The EAP3030 can support any high-density application or service requirement for both indoor and outdoor
installation.
EAP3031 4-channel Dual Band WiFi3 AP INDOOR
The latest in next generation Wi-Fi technology, the Edgewater Wireless EAP3031 is a dual-frequency, multi-
channel Wi-Fi access point with three concurrent channels in 2.4GHz and 1 channel in 5.0GHz.
The EAP 3031 can support extreme high-density applications and service provisioning and is designed for indoor or
outdoor installation.
EAP3033 6-channel Dual Band WiFi3 AP INDOOR
The latest in next generation Wi-Fi technology, the Edgewater Wireless EAP3033 is a dual-frequency, multi-
channel Wi-Fi access point with three concurrent channels in 2.4GHz and three concurrent channels in 5.0GHz.
The EAP 3033 can support extreme high-density applications and service provisioning and is designed for indoor or
outdoor installation.

EAP3030 3-channel WiFi3 AP OUTDOOR


The Edgewater Wireless EAP3030 is the multi-channel Wi-Fi access point with three concurrent channels in 2.4GHz.
The EAP3030 can support any high-density application or service requirement for both indoor and outdoor
installation.

EAP3031 4-channel Dual Band WiFi3 AP OUTDOOR


The latest in next generation Wi-Fi technology, the Edgewater Wireless EAP3031 is a dual-frequency, multi-
channel Wi-Fi access point with three concurrent channels in 2.4GHz and one channel in 5.0GHz.
The EAP 3031 can support extreme high-density applications and service provisioning and is designed for indoor or
outdoor installation.
EAP3033 6-channel Dual Band WiFi3 AP OUTDOOR
The latest in next generation Wi-Fi technology, the Edgewater Wireless EAP3033 is a dual-frequency, multi-
channel Wi-Fi access point with three concurrent channels in 2.4GHz and three channels in 5.0GHz.
The EAP 3033 can support extreme high-density applications and service provisioning and is designed for indoor or
outdoor installation.

Source: Edgewater

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


Page 3 of 12
Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

Edgewater Wireless high density and capacity Wi-Fi routers and solutions integrated with WiFi3 deliver next-
generation performance. This combination meets the accelerating demand for cost effective, reliable and robust data
networking in one of the fastest growing industries in the world Wireless Communications. Over $60M has been
invested in the technological development of WiFi3.

Exhibit 4 Solving Challenging Wi-Fi Environments with WiFi3 Technology

Source: Edgewater

WiFI3
WiFI3 is patented wireless technology specifically developed to solve interference, capacity, and density problems.
Simply put, there are two ways to do Wi-Fi:
1. One radio, one channel = slow Wi-Fi;

2. One radio, multiple channels = better Wi-Fi.

Multi-channel Single Radio (MCSR) Wi-Fi uses the same Wi-Fi standard with a patented and modern approach delivering
more channels per radio. YFI holds a rich patent portfolio applicable across multiple wireless standards including 801.11
standard (AH, AX, etc.).

Exhibit 5 Verticals Where High Density Wi-Fi Matters

Source: Edgewater

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


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Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

Market Opportunity
Markets and Markets estimates the global Wi-Fi market to be worth $33B, driven by the rapid proliferation of high
data, high-density demand devices such as smartphones, tablets, laptops, and watches. Global Web Index reports
that the average North American user has over 3.64 Wi-Fi enabled devices this is putting pressure on telcos, cable
operators, enterprises, and stadiums/conference centres to deliver a Wi-Fi service capable of supporting features
such as Voice over Internet Protocol (VoIP), HD video and data rich applications such as Facebook, Snapchat,
WhatsApp, YouTube, and others.

Recent industry consolidation includes the acquisition of Aruba Networks (Private) by HP (HPE-US, NR) and the re-
acquisition of Ruckus Wireless (Private) by Arris International (ARRS-US, NR). Should YFI successfully prove out its
technology in field, it would be an ideal take-out candidate for one of the larger infrastructure vendors.

A broader view of Wi-Fi traffic, inclusive of traffic from Wi-Fi-only devices, shows that Wi-Fi and mobile are both
growing faster than fixed traffic (devices connected to the network through Ethernet). Cisco (CSCO-US, NR) estimates
that fixed traffic will fall from 52% of total IP traffic in 2015 to 33% by 2020, with mobile and offload from mobile
devices together accounting for 47% of total IP traffic by 2020, a testament to the significant growth and impact of
mobile devices and lifestyles on overall traffic. Cisco believes Wi-Fi traffic from both mobile devices and Wi-Fi-only
devices together will account for almost 49% of total IP traffic by 2020, up from 42% in 2015. The increased traffic and
demand for reliable Wi-Fi adds strenuous pressure on bandwidth a quandary to which YFI has an innovative answer.

Exhibit 6 IP Traffic by Access Technology

Source: Cisco

Besides mainstream mobile devices, billions of IoT connections will be added over next five years. These connections
are predominantly either on Wi-Fi and/or on cellular networks. If a small selection of popular IoT devices and their
consumption in Megabytes per hour were on the mobile network and on a 5GB data cap, Exhibit 7 shows the number
of hours of consumption these IoT connections would take to fill the data cap. There are immense implications on the
network design and readiness for the slew of IoT devices coming on to the network, be it Wi-Fi or mobile. Mobile data
plans will need to evolve to accommodate the large mix and types of connections for end consumers and subscribers,
and Wi-Fi will have to adapt to the bandwidth requirements and adaptation of increased competition thereof.

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


Page 5 of 12
Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

Exhibit 7 IoT Strain on Bandwidth

Source: Cisco

Three-Pronged Attack
Edgewaters path to revenue lies in its three business units, HD Wi-Fi Solutions, OEM & Licensing, and Patent
Monetization.

Exhibit 8 Triple Play to Revenue


HD Wi-Fi Solutions
Access Point Products and Solutions for
high-density applications
Differentiated technology, competitive
model, agile Wi-Fi for the future
solutions
OEM & Licensing
WiFI3 powered radios, chips and software
into manufacturers products early wins
in Small Cell, distributed antenna system
(DAS), and a Top 5 Retailer

Patent Monetization
Patent portfolio with >20 patents
Patents applicable across numerous
wireless technologies first IP licensing
customer is Apple (AAPL-US, NR)

Source: Edgewater

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


Page 6 of 12
Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

CableLabs
In July 2016, YFI made a strategic decision to engage with CableLabs and enter its accelerator program, UpRamp
Fiterator. CableLabs is a non-profit innovation and R&D lab founded by members of the $500B cable television
industry and tasked with driving innovation in industry. Companies such as Rogers (RCI .B-T, $64.87, Buy, $73.00
PT), Shaw (SJR.B-T, $29.39, Buy, $32.00 PT) and Comcast (CMCSA-US, NR) are a sample of those in the CableLabs
network all of which understand the shortcomings of traditional Wi-Fi.

In just 12 months, YFI is growing its list of engagements, which currently stands at eight and ranging from tier one
operators to smaller regional tier three MSOs.

CableLabs has allowed YFI to access many key relationships and has led to capturing the attention of the fifth largest
cableco, Mediacom, and also secured a pilot at a name-brand NYC venue as YFIs technology is validated in the
market.

Exhibit 9 Independent Testing Results Momentum and Market Traction

Source: Edgewater, Kyrio is a subsidiary of CableLabs

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


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Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

Exhibit 10 Canadian Small Cap Comparables


Price Rating Target Mkt Cap. LTM Rev EV/Sales EV/EBITDA P/E Analyst
Ticker (Local) (Local) (Local) (Local) LTM 2017 2018 LTM 2017 2018 LTM 2017 2018 Coverage
Solium Capital Inc. SUM-CA 10.62 592 108 4.2 4.1 3.5 28.4 33.4 26.5 85.6 NM 77.1 8
Information Services Corp. Class A ISV-CA 18.19 318 91 3.4 3.4 3.3 11.3 10.3 10.4 26.4 16.4 18.1 3
Absolute Software Corporation ABT-CA 6.77 HOLD 9.00 267 120 1.9 2.0 1.9 23.9 22.9 20.8 NM NM NM 9
Redknee Solutions Inc. RKN-CA 1.05 SPEC BUY 1.50 275 181 0.3 0.4 0.4 NM NM NM NM NM NM 5
Calian Group Ltd. CGY-CA 31.54 BUY 40.00 240 275 0.8 0.8 0.7 9.0 9.1 8.7 15.5 15.7 NM 4
Pure Technologies Ltd. PUR-CA 4.44 BUY 7.00 244 126 1.9 1.8 1.6 13.8 10.0 8.5 74.0 45.2 22.6 6
Sylogist Ltd. SYZ-CA 10.60 238 33 6.4 NM NM 17.0 NM NM 34.2 NM NM 0
Vecima Networks Inc. VCM-CA 9.80 220 63 1.9 1.7 1.9 9.6 5.9 11.0 18.2 28.0 67.6 2
TECSYS Inc. TCS-CA 16.07 BUY 17.50 210 70 2.8 2.7 2.4 35.4 25.5 18.2 28.2 47.7 30.3 6
Photon Control Inc. PHO-CA 1.80 BUY 2.25 199 42 4.3 4.0 3.5 24.4 11.8 10.7 45.0 36.0 16.4 1
UrtheCast Corp. UR-CA 1.49 180 89 NM NM NM NM NM NM NM NM NM 3
NeuLion, Inc. NLN-CA 0.41 BUY 1.00 114 125 0.4 0.4 0.4 NM 14.4 4.7 NM NM NM 3
BSM Technologies Inc. GPS-CA 1.32 109 66 1.5 1.5 1.4 12.0 11.9 10.2 18.3 NM NM 8
Nanotech Security Corp. NTS-CA 1.44 BUY 2.50 98 7 NM NM 4.2 NM NM NM NM NM NM 4
Symbility Solutions, Inc. SY-CA 0.39 94 39 2.3 2.2 NM NM NM NM NM NM NM 1
Pivot Technology Solutions, Inc. PTG-CA 2.29 BUY 5.50 93 1,983 0.1 NM NM 12.1 NM NM NM NM NM 1
Edgewater Wireless Systems Inc. YFI-CA 0.69 99 0.3 NM NM NM NM NM NM NM NM NM 0
AgJunction Inc. AJX-CA 0.53 62 59 0.7 NM 0.4 NM NM NM NM NM NM 1
Espial Group Inc. ESP-CA 1.74 SPEC BUY 2.70 63 36 0.7 0.8 0.7 NM NM NM NM NM NM 7
Spectra7 Microsystems, Inc. SEV-CA 0.32 SPEC BUY 0.70 51 13 4.0 NM NM NM NM NM NM NM NM 4
NexJ Systems Inc. Class A NXJ-CA 2.49 52 31 1.1 1.2 0.9 25.9 NM 7.0 62.3 NM 11.9 1
VIQ Solutions Inc. VQS-CA 0.28 SPEC BUY 0.50 43 15 2.7 2.4 1.8 NM 19.6 11.6 NM NM 21.4 1
C-COM Satellite Systems, Inc. CMI-CA 1.12 41 10 2.7 NM NM 21.8 NM NM 37.3 NM NM 0
ProntoForms Corporation PFM-CA 0.36 40 12 2.8 2.9 2.3 NM NM NM NM NM NM 2
AnalytixInsight, Inc. (Canada) ALY-CA 0.53 34 2 NM NM NM NM NM NM NM NM NM 0
Smart Employee Benefits, Inc. SEB-CA 0.25 38 101 0.6 NM NM NM NM NM NM NM NM 0
Siyata Mobile Inc. SIM-CA 0.57 34 19 1.7 NM NM NM NM NM NM NM NM 2
Intrinsyc Technologies Corporation ITC-CA 1.27 SPEC BUY 3.35 27 24 0.8 NM NM 23.4 NM NM 55.5 NM NM 1
Redline Communications Group Inc. RDL-CA 1.49 SPEC BUY 3.00 26 27 0.5 0.6 NM NM NM NM NM NM NM 2
Posera Limited PAY-CA 0.20 23 11 0.8 NM NM NM NM NM NM NM NM 0
exactEarth Ltd. XCT-CA 1.02 22 13 1.0 1.0 0.7 NM NM NM NM NM NM 2
Trakopolis IoT Corp. TRAK-CA 0.87 SPEC BUY 1.50 21 9 NM NM NM NM NM NM NM NM NM 1
Memex Inc. OEE-CA 0.14 15 2 6.7 NM NM NM NM NM NM NM NM 0
TrackX Holdings Inc. TKX-CA 0.27 17 4 NM NM NM NM NM NM NM NM NM 0
iLOOKABOUT Corp. ILA-CA 0.18 15 9 0.9 NM NM NM NM NM NM NM NM 0
CounterPath Corporation CPAH-US 2.16 12 11 0.8 NM NM NM NM NM NM NM NM 0
Intermap Technologies Corporation Class
IMP-CA
A 0.59 10 19 1.5 NM NM NM NM NM NM NM NM 0
Eight Solutions, Inc. ES-CA 0.15 8 4 3.2 NM NM NM NM NM NM NM NM 0
NTG Clarity Networks Inc. NCI-CA 0.07 3 11 0.9 NM NM NM NM NM NM NM NM 0
Dragonwave Inc. DRWI-CA 1.13 0 53 0.3 NM 0.1 NM NM NM NM NM NM 0
Averages: 2.0 1.9 1.7 19.1 15.9 12.4 41.7 31.5 33.2

Source: Consensus Data - FactSet

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


Page 8 of 12
Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

Edgewater Wireless Systems Inc. Tear Sheet (Watch List)


$0.80 2.50 Company Description Consensus Current Return
$0.70 Edgewa ter Wi rel es s Sys tems , devel ops a nd ma nufa ctures mul ti -cha nnel , Ra ti ng: Wa tch Li s t
2.00 s i ngl e ra di o (MCSR) wi rel es s communi ca ti ons equi pment a nd Wi Fi Ta rget: NA #VALUE!
$0.60
technol ogi es . Its products i ncl ude Wi Fi a nd IOT. The Wi Fi products dea l wi th Medi a n: #N/A #N/A
$0.50 1.50

Volume (M)
i ndoor a nd outdoor a cces s poi nts (APs ). The compa ny wa s founded on Ja nua ry Hi gh: #N/A #N/A
Price (C$)

$0.40 Low: #N/A


8, 1980 a nd i s hea dqua rtered i n Otta wa , Ca na da . #N/A
$0.30 1.00
$0.20
0.50
$0.10 Consensus Distribution
$0.00 0.00 Buy #N/A
Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Hol d #N/A
Sel l #N/A
# of Ra ti ngs #N/A

Financial Summary/Key Metrics 2016 2017 Q118 Q218E Q318E Q418E 2018E 2019E 2020E 2021E Top Inst. Ownership % Held
Total Revenue 0.1 0.3 0.0 0.1 0.2 0.5 0.9 6.1 12.2 20.8 #N/A #N/A
Growth y/y 104% 1167% 100% 157% 284% 219% 601% 100% 70%
Consensus
Gross Margin 58.2% 26.2% 2.3% 15.0% 15.0% 15.0% 14.6% 25.0% 35.0% 45.0%
EBITDA (1.7) (3.6) (0.8) (0.9) (1.0) (1.3) (4.1) (3.3) (0.8) 4.2
Growth y/y 107% 40% 5% 31% -1% 14.2% -19.7% -75.6% -618.3%
Consensus
Diluted EPS (0.02) (0.03) (0.01) (0.01) (0.01) (0.01) (0.03) (0.02) (0.01) 0.03
Growth y/y 75% 14% -21% 18% -12% -4.4% -20.6% -76.8% -577.8%
Consensus

Net Debt (0.1) 0.4 (0.2) 0.1 (0.8) 0.5 0.5 4.9 6.3 2.2 Key Statistics Value
Capex 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 52 Wk Hi gh 0.84
52 Wk Low 0.19
YTD Chg. 132%
Balance Sheet 2017 Q118 Q218E Q318E Q418E 2018E 2019E 2020E 2021E 1 Yr. Chg. 172%
Cash 0.1 0.5 0.2 1.1 - 0.2 - 0.2 - 4.7 - 6.1 - 2.0 Beta 0.59
Trade & Other Receivables 0.4 0.3 0.3 0.7 1.7 1.7 1.8 3.5 6.0 Ma rket Ca p 99
Total Current Assets 0.7 1.1 0.8 2.3 2.6 2.6 - 0.2 2.0 10.6 EV 94
Sha res Outs ta ndi ng (M) 143
Total Assets 1.0 1.2 0.9 2.4 2.7 2.7 - 0.0 2.2 10.8 LTM Di vi dend -
Di vi dend Yi el d 0.0%
Deferred Revenue - - - - - - - - -
Trade & Other Payables 1.4 1.2 1.8 2.1 3.3 3.3 2.7 3.3 4.1 Valuation 2017 2018E
Total Current Liabilities 1.7 1.4 1.9 2.3 3.4 3.4 2.8 3.4 4.2 EV/Rev 345.5 108.4
Total Liabilities 1.8 1.5 2.1 2.4 3.5 3.5 2.9 3.5 4.2 EV/EBITDA (26.1) (22.9)
Total Liabilities & Shareholders Equity 1.0 1.2 0.9 2.4 2.7 2.7 - 0.0 2.2 10.8 P/E (21.3) (22.3)

Comparables Return Rev EBITDA EPS


Price Target Div Yield
Multiples Analysis 1 Week 1 Month 3 Month YTD 1 Year 2016 2017 2016 2017 2016 2017
YFI-CA 0.69 NA 0.0% 23% 188% 176% 103% 151% NM NM NM NM NM NM
RDL-CA 1.49 0.0% -3% -1% -4% -5% 0% 23 20 - 3 - 2 - 0.28 - 0.16
CSCO 37.61 3.1% 0% 9% 19% 24% 26% 49,247 48,005 16,984 17,076 2.36 2.39
002583-CN 19.00 0.2% 0% -14% 23% 44% 39% 499 822 70 118 (0.15) (0.07)
QCOM 64.24 3.5% -2% -2% 29% -1% -6% 23,507 23,235 9,274 8,474 4.44 (0.02)
AVGO 259.91 2.7% -4% -5% 6% 47% 52% 13,292 17,665 7,653 11,184 11.45 16.02
QTNA 11.95 0.0% -4% 3% -31% -34% -36% 129 176 3 10 0.04 0.22
Comparables FCF Yield EV/Rev EV/EBITDA P/E
EV
Multiples Analysis 2016 2017 2016 2017 2016 2017 2016 2017
YFI-CA 73 NM NM NM NM NM NM NM NM
RDL-CA 11 NM NM 0.5 0.5 NM NM NM NM
CSCO 152,159 6.5% 6.7% 3.1 3.2 9.0 8.9 15.9 15.7
002583-CN 5,615 NM NM 11.2 6.8 80.7 47.5 81.0 50.0
QCOM 80,303 7.2% 4.2% 3.4 3.5 8.7 9.5 14.5 15.0
AVGO 118,673 2.6% 5.4% 8.9 6.7 15.5 10.6 22.7 16.2
QTNA 338 NM NM 2.6 1.9 99.8 34.1 298.8 54.3

Source: Historicals Company Filings, Consensus Data - FactSet

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


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Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

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ANALYST CERTIFICATION
Company: Edgewater Wireless Systems Inc. | YFI:TSXV
I, Ralph Garcea, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not,
and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.
IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analysts household have a financial interest in the securities of the subject issuer?
No
If Yes: 1) Is it a long or short position? No; and, 2) What type of security is it? None

Does the Analyst or household member serve as a Director or Officer or Advisory Board Member of the issuer? No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of
No
common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public
No
offering, or private placement of securities of this issuer?

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Has the Analyst been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuers securities at the date of this report? No

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


Page 10 of 12
Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

RATING DEFINITIONS
The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time
Buy
horizon.
Speculative Buy The security is considered a BUY but in the analysts opinion possesses certain operational and/or financial risks that are higher than average.
Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price
Under Review
move.
Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.
Dropped Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever
Coverage coverage of an issuer is dropped.

RATINGS DISTRIBUTION
Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender
Number of recommendations 47 46 16 1 2 4 0
% of Total (excluding Restricted) 42% 41% 14% 1% 2%
Number of investment banking relationships 7 20 2 1 0 4 0
% of Total (excluding Restricted) 23% 67% 7% 3% 0%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target (C$) Rating


11-Dec-17 N/A W atch List
Edgewater Wireless Systems Inc. (TSXV:YFI)
$0.90
$0.80
$0.70
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
$0.00

Price Target (C$)

Watch List initiated: 12/11/2017 Data sourced from FactSet

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


Page 11 of 12
Edgewater Wireless Systems Inc. (YFI-TSXV) | December 11, 2017

Toronto Wealth Management Toronto Capital Markets Montreal Wealth Management and Capital Markets
1 Adelaide Street East, Suite 2000 130 King Street West, Suite 2500 1000 De La Gauchetire St. W., Suite 1130
Toronto, ON M5C 2V9 Toronto, Ontario M5X 2A2 Montral, QC H3B 4W5
416-572-5523 416-649-4273 514-396-0333

Ottawa Wealth Management Calgary Wealth Management Vancouver Wealth Management and Capital Markets
360 Albert Street, Suite 800 350 - 7th Avenue SW, 19th Floor 1055 Dunsmuir St. Suite 3424; P.O Box 49207
Ottawa, ON K1R 7X7 Calgary, AB T2P 3N9 Vancouver, BC V7X 1K8
1-877-967-5866 403-218-3144 604-647-2888

Victoria Wealth Management Oakville Wealth Management London Wealth Management


730 View Street, Suite 210 1275 North Service Road, Suite 612 495 Richmond St., Suite 830
Victoria, BC V8W 3Y7 Oakville, ON L6M 3G4 London, ON N6A 5A9 V8W 3Y7
1-877-978-9300 289-348-5936 519-858-2112

Saskatoon Wealth Management Tokyo Capital Markets


402-261 First Avenue North Holland Hills Mori Tower; RoP #603
Saskatoon, SK S7K 1X2 5-11-1 Toranomon, Minato-Ku,
306-667-2282 Tokyo, 105-0001, Japan
+81.90.1470.1684

Ralph Garcea, MBA, P. Eng | 647.794.1925 | rgarcea@echelonpartners.com


Page 12 of 12

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