 Hey guys, so I decided to make this pretty top-level and then if anyone has specific questions we can go into more detail and I'll post the slideshow later if anyone wants it. It's pretty top-level, so bear with me if anyone knows just tell me to move on. In a nutshell, sounds is, you know, it's vibrations of molecules and wave passing and adjacent molecules are going to pass along the sound. I'm not going to talk through this but the reason I mention this, right, is when we talk about noise reduction and we talk about passive noise reduction, there's actually, you know, there's physical molecules moving, this is what passive noise reduction works with. Okay, so what people hear, 20 hertz to 20,000 hertz. I'm not going to play the sounds, you know, we had issues with Jerry's presentation last time with high sweeps and deafening sounds. If you want, there's a nice frequency sweep link here, you can go later and check it out and see how well you hear. Basically, the average person here is between roughly 100 hertz and 17,000 hertz really after puberty. As you get older, that goes down, your high end goes down. Men also have a lower high range, so as you're reaching the end of your life, men's hearing typically is under 15,000 hertz and can get as low as 5,000 hertz or really bad hearing loss for women, just add about 1,000 hertz to that. Yeah, cool. So just to give you a sense of what you're actually hearing again, referring back to Jerry's presentation last time as well, with sound, you basically have, it's additive, it's a bunch of different sounds that are, the vibrations coming into your ear, your ear is breaking down those sounds and what you perceive is effectively those different layers of sound. In the case of human voice, again I put this 80 to 400 hertz range. In reality, if you cut out pretty much any chunk of that, you could still hear someone's voice. So if we put on a filter, whether it be a high pass, low pass filter, you could still hear almost perfectly intelligently at almost any frequency. As we discussed last time as well, film companies cut out everything above 3,000 hertz because there's no reason for them to transmit that data because they don't care. You can't really tell the difference. In reality, I mentioned here is this sort of fundamental frequency, it's like the core frequency or pitch of the voice, but the majority of human speech is perceived between 500 and 3,000 hertz. So this is the core frequency range at which we're evolved to operate at. That's the frequencies that you want to communicate with, these are the sounds that everyone needs to hear to get by on a day-to-day basis. Now, the direction to take this talk, I'm going to talk about sort of the mechanics of it and then how it applies to the world. To give a little bit of a framework, let's talk about an airplane, right? In an airplane you have the sound of jet engines, you have the sound of people breathing, you have the sound of the air conditioning units, refrigeration units, people walking around, babies crying, people talking. All of these different things added up. Again, you get all these different layers of sound. You have low frequency sound, high frequency sound, and the way your ear determines what you hear is a perceived sound level. So I'm not going to walk through this. This is just about the actual sound pressure levels, the decimals of different sounds. You can look at it if you're curious. Again, being with sound, it's relative. So what this means is if your average ambient sound level is, imagine this line here. So if you're sitting on a plane and everyone's sitting there silently, this is the ambient noise and then you add all the sound of people talking around you and you're just sitting there, that's the ambient noise. Before you try to listen to your music or put on a movie or talk to the person next to you. Now if they speak at a lower level than that sound, you're going to struggle to hear them. It may still be possible, but it's going to be really tough. If they speak above that level, it's going to be much, much easier to hear them. Of course I've run around and you hear that and then the ambient noise will go up forever and else. Again, it's an additive effect. So passive noise reduction is where we're using actually a physical material to reduce sound reaching your ear. And there's a few different ways this works. You have the absorption of sound by material and the diffusion of sound by material. So you can have a material that's bouncing the sound around and it's basically making it take longer for that sound wave to reach your ear. And you can have other materials which are actually going to, by having either a variation or a density of material or a elasticity of material, done in such a way that the sound wave slows, loses energy as it goes through that material to the point that when it reaches your ear, it's not a sufficient sound pressure for you to hear. The reason that high frequency sounds are most affected by passive noise reduction is that they are moving at a very high frequency, right? And when they hit a solid high density material with low elasticity, the materials don't vibrate effectively. So there's no way for that sound to easily pass through. So it may be able to vibrate those molecules and then they'll transmit that sound. But each time it hits a different speed of vibration, it's going to change the energy of that sound wave. Again, remember we're actually having mart molecules, particles, that are actually vibrating according to this frequency of the wave. Now active cancellation works in a totally different way. And I'll come back to build up on this. Active cancellation isn't looking materials at all. We're recording a sound, we're taking that sound wave, and we're flipping it upside down, and we're playing back the lowest possible latency so that there's almost no delay. And what's happening is when you have this anti-sound, it's actually going to cancel out your hearing of this, right? The basically this negative amplitude means that the perceived sound to your ear is nothing. It's exactly as simple as it sounds. Do you remember Jerry's presentation last time? I don't know how many of you ever was here. Last time? As a show of hand. Time to give away the last time. Anyway, so basically what's happening is we're actually taking a sound wave, there's a mathematical representation, flipping it over, and playing it back at the same time as the original source sound. By doing that, again, you get this cancelled sound, and you perceive less sound. This active cancellation is working on low-frequency sounds. And the reason that we're working on low-frequency is that we've already got high frequency covered with passive noise reduction. And I think it's easier because these frequencies are moving slower, and there's a delay, right? Whether you're using analog circuit, which processes much quicker than digital circuit, either way, there's a delay. So doing this at low-frequency is much easier than doing it, let's say 15,000 hertz. It's going to be very, very difficult to process that sound quickly enough and still be in phase so that it lines up to cancel out that sound. So let's talk about some real-world examples. A pair of noise-canceling headphones like Bose. Everybody knows Bose headphones. They're sort of the cream of the crop. In the last 15 years, the Bose technology has not changed at all. They might have a slightly more power-efficient circuit that's processing that, that noise cancellation, so it goes a minute different, slightly lower latency. They might have less power consumption because the circuit's more efficient. It's using materials that absorb less energy as it passes through. But the reality is, very, very little has changed. So when you put on a pair of Bose headphones, you have a seal around your ears, right? You've got that cushion, that plastic. These are all materials that are specifically chosen to absorb passively high-frequency sounds. So this is one seal that physically creates a barrier between your eardrum and high-frequency sound. Low-frequency sound is still going to be somewhat reduced, but substantially less than high-frequency sound. Now, on top of that, you then have this active noise-canceling system. You have a microphone, or actually, in the case of Bose, two microphones in each ear, and these microphones, they're not including a voicemail. These microphones are going to, at different points on the headphones, interpret incoming sound, invert those sound waves. And in addition to that, they're going to be calculating the echoes inside that enclosure, that little pocket in between the headphone and your ear. And it's going to make a calculation of what frequencies of sound that it's just heard to play anti-noise for. Now, what you have to actually understand is it's very mechanical. This isn't some kind of cryptic, complicated system. It's actually incredibly simple. It's just a filter. So noise-canceling, it's beyond this, it's actually taking what you're hearing on the mic. It's creating a filter where you're cutting off the sound that you don't want to cancel, and then everything else is being canceled. So in the case of, for instance, when I'm designing a pair of headphones, our noise-canceling system, we have effectively canceled, let's say, you know, 1,200 and up a high frequency sound of our material choices. So anything below 1,200 hertz, we want to cancel actively. So we're going to put on a low-pass filter. We're going to cancel everything above 1,200 hertz, and of course there's a curve. But by doing that, we're eliminating that high frequency noise with the passive reduction, and then the active reduction is going to only flip the low frequency sound so we don't take the high frequency sound and actually play it back through those mics. Now, one of the challenges of a traditional noise-canceling headphone and why it struggled to advance is that inside this enclosure, you've got one, and in a few cases, you have a few drivers playing back your sound. And in that environment, you're using a limited number of drivers that are tuned to produce high-quality sound like music. But you're also mixing in this anti-noise, which, you know, to be human ear, to make ear sounds like nothing, where it's just garbled surroundings, ambient noise, white noise. So when you do that, obviously you're going to have signal degradation, you're going to have a reduced-quality sound. At the very least, you're going to be combining two signals, right? And when you do that, you commonize on sound. But if we take it a step further, outside of headphones, and they're in the world of noise-canceling technology, it's been applied to server racks, it's been applied in noisy office spaces where people do, they'll actually have a speaker that plays anti-noise near a noisy fan so a crowded space is less crowded. Or less loud, sorry. And in these environments where you have an open space with people talking, it's not that effective. It's really tough, which is why people use a lot of insulation. And when you're using insulation, it's very easy because it's not moving, it's not, heat tends to be less of an issue. You can choose big materials, thick materials that you can't strap on a person's head. In that environment, it's relatively easy to reduce noise, for instance, again, a server rack. You can have that padding in those cases of materials that cut that fan noise, cut the sound of, let's say, a spinning disk drive. Now, in the context of a person's head, if you added on those materials you can have, and I'm sure you've all seen those heavy construction headphones and at a shooting range heavy headphones, or earmuffs rather, it's just a thick, heavy material that does a really good job of cutting that noise passively. And because they're using such thick, high density materials, they're very heavy, they're very, very hot, they can actually cancel a lot of low frequency noise as well. Now, in the context of a consumer, in the context of everyday life, when you look at earbuds and headphones, if you pull them up with heavy materials and high density materials, they're not going to be comfortable, they're not going to be compact, they're not going to be affordable because those materials are expensive, and realistically, you're not going to be able to wear it comfortably for an extended period of time. So, in the context of noise reduction, when you think about headphones, I think it was probably the most common use case anyone is going to see this technology. There's a few different things that different people, different companies do to address this, right? You've got passive noise reduction using advanced materials, whether it be phones or cushions or plastics that are designed with high density and low weight, which is tricky, and low elasticity, which is then fragile, so there's a lot of compromises there, and you have vibrations, which adds to the complexity, and then you have people who are applying active cancellation, whether it be with a single mic, multiple mics, multiple ears, and then you actually have people who add layers of white noise into your hearing environment. The best example of this is a company called Cocoon. They were on, I think, Inugogo. And what they did is they actually created a headphone that plays your music and adds white noise so that your ambient noise level covers background noise. So instead of trying to cancel out that background noise, they just said, screw it, we're going to cover it up, you can't hear it, and the white noise your brain will filter out naturally, you'll get used to it. So all you hear is that positive difference above the noise floor. Now, in the context of the picture, nobody's solving the problem, right? Nobody is much quicker than that. But yeah, it's cool. In the big picture, nothing has changed because even if you have the best cushion, even if you have the best noise, your nose, your mouth, your eyes are places where sound enter your body. And unless you plug all of these entrance points of sound there's no way to prevent the vibrations in your interview. So think about bone conduction headphones, right? It cannot be done in a realistically comfortable human interface. So technology has reached a point where it's already very good. And to get much better, there's not really many compromises we can make. So now I'm going to plug a little bit of what I'm doing very briefly. And then I guess I have questions, but that was way shorter than probably. So what I'm doing at Audasis is we're designing a noise-canceling device that doesn't play music. This is a device that doesn't mix signals. You don't have your noise-canceling anti-sound and your music playing out of the same drivers in the same space. You have a dedicated environment that just cancels noise. We're basically creating a little quiet bubble on your head. And it's the closest you can get short of, again, putting a bubble over your head. We're using really new, lightweight, high-density materials with the right relationship, plasticity, density of weight, and readability to filter out as much sound as possible without adding weight and discomfort. And we're using multiple microphones on each ear. And we are using the best noise-canceling chips that are highly efficient, that do a very good job, and they're being specifically tuned with drivers that just do noise-canceling. So in this space, all you get is active noise cancellation on whatever noise makes it through. And because we don't have to calibrate that for anything other than our drivers and our mics and no music, those drivers are actually tuned to play lower-frequency sounds much better. And there's no signal mixing and the quality of noise-canceling goes up. And on top of that, our system lets you plug in any pair of earbuds inside this space. So you can plug in your custom in-ear monitors that you paid $2,000 to have mold into your ear, 12 armature drivers each ear. And you're going to get that sound quality through our system. So you get high-quality sound and you get the high-quality noise cancellation because you're not trying to blend the two together. But the reason that I'm doing this and the reason that the technology has hit this roadblock is that the focus has been on trying to find the best mix of music or sound quality and noise-canceling as opposed to treatment is two separate things, right? The reality is that noise-canceling is a terrific technology that can benefit working in an open-plan office, that can benefit going on a commute bus, on a train, on a plane. It can benefit trying to meditate, doing yoga, whatever it is. And the technology just hasn't been developed before. Everybody's focused on just trying to match what's been done already. And this is the first time that that's changed. So I think I've probably stumbled along for far too short, but I'm happy that you take questions and go back over in more detail anything that I blazed over. So what about the great thing? Not yet. We've got group of concepts and we're at the stage we're looking for investors to go to manufacturing and all that stuff. How about the noise cancellation and IEM in direct with each other? Will that mean any cost disturbance? So yes, that's a tricky one. There's obviously noise pollution because of the leakage. Even if you're wearing a custom molded in-ear monitor, there's going to be sound leakage. But in the environment of a space that has a perceived sound floor is much lower. In this space that we've created, you hear very little. It's much quieter than it would be in a regular pair of headphones. The result is that when you plug your earbuds or in-ear monitor inside this, there's a headphone jack in the cable management system. So you're going to, from an acoustic perspective, there's very little issue. When we stuck this on those wildly expensive heads with those wildly expensive mics in each simulated ear, it's not an issue. The impact of sound leakage, is that your question? The frequency disturbance. The frequency disturbance. In more respect. So these are completely separate systems. So the noise cancellation is... So imagine you're wearing these headphones all the way. It's not actually changed. That's pretty sweet. It actually changed the digital picture. Anyway, it's cool. This space is just, it's playing anti-noise to cancel out your ambient sound and creating a quiet environment. So other than, when you put your in-ear monitor in, that is a direct link to your source. Does that answer your question? So they're completely separate systems. So you basically have a noise canceling system, like electrically speaking, inside this headphone and then you have your earbud, which is a separate system that connects to your source audio. So electrically they're independent. Acoustically, it's the same as if this was a quiet room and you listen to music with headphones. It's just much smaller. So what kind of reduction can you actually get? We're like the specs on the phone. So if we look at Bose, they typically get 20 to 25 decibel reduction. Pretty flat. No, because you have passive versus active and it depends on your environment and sound and so on. But for the purpose of calling an average reduction about 25 decibel reduction, we're seeing 35 or 2 plus. And of course there's infinitely better sound quality because you can have truly high quality in-ear monitors. And we're actually wireless as well. And we're using Sony's Kodak, which is about three times higher bit rate than AptX, which is the industry standard. So you can get pretty close to lost this audio wirelessly and get that audio quality. You can always cancel the environment, which just isn't possible with Bose headphones. They just don't have the frequency range to reproduce that sound pattern. So your high frequency reduction is all mechanical. It's not electrical. It's not filters at all. Right, it's passive. All passive. Yes. And then you have your sound detectors inside that. It must be, right? It wouldn't make sense to have an outside passive reduction. Well, so what it does is it basically calculates the difference. So you have a mic inside and outside and you can calculate the difference and net out the remainder. And what's the delay that you can see? Like how fast can you react to? That's a tricky question, but the short answer is we're still figuring out which chips that we're going to go with. The fastest on the market. As fast as not faster than anyone else because we're a new product using a new chipset versus Bose is using the same chipset. And that hasn't really changed much. The big difference. Yeah, there you go. So the size of the rendering in the middle is an actual photo. It's a little bit mysterious. Yeah, we're not done yet. But passively we have a huge edge over anyone because you have your earbuds or in your monitor, in your ear. That's passively reducing sound. And seal around your ear reducing sound passively. So that's twice as much effective passive reduction for high frequency sound. So anything above 1,500 hertz, we're going to be roughly twice as effective as anyone else. So baby crying. You put on your Bose headphones and it's not so bad. You put on these and you're assuming your music and you really won't hear it. It's sold. And so that's 35 dB reduction. How does that compare to like the purely passive construction? So purely passive construction can get up to around 50. But the compromise is on the weight and comfort. So we're still working with partners on using that material to see how close we can get. I will not by any means call 35 our final go-to-market number. I certainly hope to get close to that. Our theoretical calculations actually were about 45. So we're a pretty big game changer to have a comfortable lightweight equivalent to construction for a, you know, safe for a shooting range headphones. And we've actually seen interest in shooting ranges in the U.S. We're working on it. So just like the heavyweight construction ones. The truly top-notch ones that actually can get to around $200. If you want to go for a cheap air, you can get them for like 20 bucks. And so you're talking around that, right? So, yeah, short-term we're going to try and come in between $200 and $300. Long-term, our goal is actually, like if you want to look at admission, was to bring a very great useful technology to the mass market. And I don't see $300 price point as mass market. So my goal is to really bring it down to about $100 over the next five years. But obviously that takes time and scale. So, yeah, stay tuned on that one. I know you're still quiet, but you're both really big. So, again, there's a lot of theories about this. You go in like an anechoic chamber where you have these really effective, diffusing pads that will absorb a lot of sound and bounce sound of sound. So like you're speaking, they'll be a zero echo. In this space, it does make you feel uncomfortable because you don't hear your own voice, which is weird. But at the same time, unless you're in an anechoic chamber, because the sound comes in through your mouth, through your nose, through your eyes. Even though we're reducing sound as much as is realistically possible with technology, we're not sucking the air out of the room. So you're still going to get enough. You're going to feel the sound pressure in your head and you're not going to feel that uncomfortable sense. Does that answer your question? You won't go insane. You can poke him. So basically they don't work like cancelling the airplane noise, but you can still hear somebody talk to you. They don't do that. They will cancel. Let's say, for example, in an airplane. Yes. It's canceling the airplane noise, but if somebody's talking on the microphone, I can hear. So again, the way noise canceling is working is it's going to create that anti-noise and it's going to invert that sound. It's going to cancel low frequency sound relatively easily. High frequency sound through a mic, because of the way that the active noise canceling is cutting off high frequency, that's not coming through the mic and the passive noise reduction will block that out. Just like any other pair of noise canceling headphones, there's an audio pass-through function, so you can choose to listen to your surroundings. Oh, okay. Yes. I don't want to... I mean, I'm happy to talk about my product. I don't want to club too much on myself. It's a great context, a great starting point for the conversation. Yeah, so in the context of most noise canceling headphones, you already got mics. So what they do is you push a button, it takes that sound and instead of flipping it and canceling, it plays inside the headphone environment. So you can hear it or even amplify it. And that's a generally available feature on noise canceling headphones. But by default, you would not hear nearly as much sound if somebody were speaking. So definitely people talk about mass being the only thing that really stops sound from low frequency. We're talking about lightweight construction. And I'm trying to figure out how that works. Is there some secret to the structures that little vacuums in there... So there's a bunch of different things that we're doing. And just to sort of briefly touch on it, you've got density and elasticity of materials. Higher density and lower elasticity. But doing that in a way that doesn't make a brittle object. Then you have varieties of materials. If you alternate materials, so if you have very thin layers, changing materials actually also slows down that sound wave. And then on top of that, if you have, for instance, microscopic, like, conical structures and shaped will effectively bounce and redirect that sound. All of these things combine to do a very good job of blocking, absorbing, and deflecting or diffusing passive, you know, high frequency sound. Again, with low frequency sound, it doesn't carry as much. It's kind of just plodding along and it sneaks in. Other questions? Let them do the better than the questions part. Cool. So at least I hope everyone's got a firm grasp of the basics of how cancelling... I don't know if cancelling works or reduction of cancelling.