Ryan Stewart R. Scott Blamey Jack Vu Ben Schlesinger Stuart Truax
Volatile Organic Compounds
Definition
Health Effects of VOCs
•Dizziness•Headaches•Allergic Reaction•Nausea•Vomiting•Visual Disorders•Memory Loss
•Irregular Heartbeat•Liver Damage•Kidney Damage•Anemia•Nervous System Damage•Leukemia•Death
Health Effects
Contamination
EXPLANATIONTotal concentration, in micrograms per literNo detection or less than 0.020.02 to less than 0.20.2 to less than 11 to less than 1010 or greater
0 5 10 15 20 25 30
Public Wells
Domestic Wells
Detection Frequency (percent)
Concentrations below MCLs
Concentrations greater than MCLs
Well Types
MCL = Maximum Contamination Level
How are VOC’s currently tested?
Sampling & Testing
CMOS-Based Sensor System
Core Technology
Lab-on-a-Chip
Competitive Advantage
• Eliminates the sample collection process
• Can be left in the water.
• Can monitor the water continuously.
• Huge savings over current methods.
Advantages
Intellectual Property Protection
Core Technology
• Patent Protection(Filing expected fall 2011)
Silicon Sensor
• Trade secret protection
Read-Out Circuitry
• Patent Protection(Filing expected fall 2011)
Sensor Enclosure
Year
2
Management
CEORyan Stewart
CROStuart Truax
Research Assistant
Research Assistant
CFO
Marketing Assistant
CBDOCOO
R. Scott Blamey
CCOBen
Schlesinger
CLOJack Vu
Market
156,000U.S. Public Water Systems (PWSs)
54,000Community Water Systems
93%of Population
Semiconductor Fabrication
PCB and Packaging Assembly
3rd PartyMonitoring & Management
Value Chain
Community Water Systems
Consumers
Private Wells
Adoption
• Flexibility in decision making• Low risk tolerance• Understaffed• Mildly budget conscience
Decision Maker Profile
• EPA mandated MCL’s• State testing requirements• Existing relationship• Customer service• Reliability
Adoption Drivers
Competition
Competitive LeaderHach Company 1,100 Employees$144 Million Revenue
Largest CompetitorAgilent Technologies, Inc.20,000 Employees$5.4 Billion Corporate Revenue
Closest CompetitorAnalytic Systems International KESCO
• Continuous VOC monitoring
• 34” x 24” x 10”• 200 lbs.
Product Features
Price Advantage
Production MaterialsSilicon CMOS (i.e. die) 0.60$ Die-level Packaging 10.00$ PCB 10.00$ System Casing 1.00$ Other Electronics 1.00$
Labor 0.05$ Fab and Assembly 10.00$
TOTAL 32.65$
Production Cost per Unit
PWS Savings, 3rd Party Profit
GCMS Ethosense $-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
Cumulative costs for GCMS
Cumulative costs for EthoSense
Cost of Goods/Services
Profit
Value Created
Economic Value Created (10 Years)
2012 2013 2014 2015 2016 $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Projected Revenue
Forecasts
Projected Cash Flows
Net Present Valueof 5 Years Cash Flow
Discounted at
$7.5 Million
30%
2011 2012 2013 2014 2015 2016 $(8,000,000) $(3,000,000) $2,000,000 $7,000,000
$12,000,000 $17,000,000 $22,000,000 $27,000,000 $32,000,000 $37,000,000
Net Income
Cumulative Net Income
Risk
Risk Mitigation Strategies
Technical Risk
Insufficient product life
Exploring new packaging methods
Operational Risk
Inability to partner with 3rd party integrator
Product prototype, pilot
program
Political Risk
Agency complacency
Compliance Officer
STRA
TEGY
IS
SUE
Summary
VOC Contaminated WaterDeadly
VOC Water ContaminationOn the Rise
Continuous Monitoring NecessaryBut Cost Prohibitive
Increased EPA VOC RegulationsComing Soon
EthoSense VOC MonitorsReal-Time, Added Customer Value
EthoSense VOC Sensor TechnologyNovel Patentable Technology
Global NeedOpportunity
Ryan Stewart R. Scott Blamey Jack Vu Ben Schlesinger Stuart Truax