RHT Advanced Security Technology

1. RHT Advanced Security Technology Business and Technology Opportunity

2. Introduction The Situation Today: New and emerging threats of human carried explosives appear almost daily. Most of these threats cannot be detected by current security systems. A new approach is needed. We have that new approach.

3. Introduction The Company: Founded in 2011 to develop and commercialize a new scanning technology for detection of explosives and other hazardous materials in a wide range of public settings including airports, schools, rail and other transportation centers, sporting events, public buildings, and wherever people gather.

4. Introduction The Company: It has been self funded to date, and is now at the point where additional funds are required to complete engineering development and proceed to initial production.

5. Introduction The Value Proposition: To provide the first effective and affordable solution to protect life, health, and property from human borne threats including, explosives, weapons, drugs, and related hazards – saving lives and potentially billions of dollars. Customers range from security agencies to educational institutions, hotels and convention centers, malls, owners of large buildings, transportation and shipping services, ….

6. Introduction Unique benefits: • Effective – detects threat materials carried on, in, and near the body and eliminates error prone human operators. • Affordable – automated identification eliminates largest cost of ownership – trained operators. • Fast – designed to detect materials carried at normal walking speeds – 2 to 10 times faster than other systems.

7. Team The core team is in Silicon Valley with a presence in Virginia. Members combine many years of experience in Engineering, Manufacturing, Quality/Regulatory, IP, Computer Science and other areas, with academic and research experience in Microwave Electronics, Radiation Physics, Biophysics, Computer Science, and Mathematics. David Robb – Founder, microwave systems, biophysics, development engineering Igor Tilinin – PhD Physicist, radiation physics, mathematics John Tugwell – Quality and regulatory systems, medical device manufacturing, microwave technology Michael Hentschel– CFO – former venture capitalist, started many companies nationwide, and arranged multi-million dollar funding deals Gordon Grant – CSO Business Development – large account strategic sales track record

8. Opportunity In recent years, there have been many threats as well as actual events in many parts of the world where explosives carried by human agents have posed hazard to public safety and security. Current approaches to detection of human borne explosives have been only marginally effective. Most systems available are expensive to own and operate, have very low detection rates, are slow, and are actually unable to detect the newest threats. There is wide recognition that effective solutions are desperately needed, but until now there has been nothing available to realistically meet the needs.

9. Problems with Current Security Tech Alternatives Magnetometry – limited to metallic objects many dangerous items and substances not detected – liquids, ceramics, plastics, explosives many false positives Millimeter Wave Reflectometry – produces an image of body beneath clothing Extreme privacy issues Does not penetrate skin to detect items in body cavities Backscatter X-Rays – produces an image of body beneath clothing Extreme privacy issues Significant increase in cancer risk, especially skin, thyroid, and breast Ionizing radiation Hand search – involves direct personal contact Extreme privacy issues High risk for security personnel Currently generating widespread controversy, including lawsuits

10. Opportunity There is a significant current and growing market for our solution. • TSA alone has spent over $500M to equip 100 airports with scanning systems. • http://www.homelandsecurityresearch.com/estimates a market in excess of $4B growing at over 33% CAGR in Standoff Person-Borne and Vehicle-Borne Explosives & Weapon Detection: Technologies and Markets – 2012-2016 • At least half of this market can be served by our technology solution. • Further, a solution with good cost of ownership will open additional new markets of comparable or larger size to those already identified.

11. Detection System for Airport Use Solution Simple, open, walk-through system increases throughput and user acceptance Receiver Transmitter Indicator – shows position of detected material Interference shield Signal generator and computer – provides remote location with details of detected substances

12. Solution • RHT uses low power radio waves that pass through the body. • The radio waves are affected by the substances they encounter during passage. • Each material has a unique “signature”. • Special signal processing methods identify the signatures of the materials encountered – including explosives, drugs, contraband. • Results can be displayed at the inspection point, reported to a network center, or communicated to authorities. The solution is: • Fast • Reliable • Safe • Easy to use

13. Detection System for Airport Use Example operator panel indications PASS ALERT Material: PETN at 135 cm above floor

14. Competition

15. Competitor 1: Millimeter wave system – does not detect body cavity objects and substances. Competition estimated $150k + customization/installation $250k High operating costs – requires trained operators

16. Rapiscan Competitor 2: X-ray system – significant increase in risk of skin and other cancers Competition This image of an adult man was taken using a Rapiscan Secure 1000 backscatter X-ray scanner (Credit: John Wild (johnwild.info))Read more: http://news.cnet.com/8301-31921_3-20022477-281.html#ixzz153LVIdXk estimated $150k + customization/installation $250k High operating costs – requires trained operators

17. Key Milestone – October 19, 2011 On October 19, a key development milestone was reached. Reliable identification of materials in a single channel was obtained, clearly demonstrating the viability of the technology. A video recording was prepared to document the event. Five substances were in the database: - water - shield material - paperback book - hand - nitrate – similar to material used to make simple explosives. Samples of the various materials were placed in the channel path. The system properly identified each and presented screens similar to the two shown at right. The system correctly identified the nitrate sample as a hazardous material and triggered the “ALERT” screen. PASS ALERT Material: PETN at 135 cm above floor

18. Current Status • SpectraSafe has continued work on hardware and software refinement, as well as validation of the methods and algorithms. • Developed second generation prototype hardware (third generation is production prototype) • Developed software tools for test, validation, and database construction • Algorithm refinement is in process • Hardware Verification and Validation is proceeding

19. Prospective customers • Homeland security • Secret Service • Coast Guard • Schools and Universities • Stadium and Auditorium owners • Hotels and convention centers • Municipal facilities, including subway and rail • Embassies

20. Next steps • Complete development work in: • Software algorithms • Hardware configuration • Computing platform • Materials database • Design and develop product(s) • Airport system • Turnstile system • Portal system

21. Current Vendors • Present scanning systems cost from $150K to $250K per unit, and up to $435K installed. • Scanning System Manufacturers include: • L-3 Communications (airport reflected millimeter wave) • Rapiscan Systems (current controversial airport X-ray) • Smiths Detection Group (cargo/baggage X-ray) • General Electric (cargo/baggage X-ray) • Tyco International (cargo/baggage X-ray) • United Technologies (cargo/baggage X-ray) • Siemens and Hitachi (cargo/baggage/container X-ray) • Our system will cost <$40k to build, so will be under $200k installed, for much more utility and less controversy.