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IMPACT. Plasma Igniter, LLC. Plasma Igniter, LLC Jim Smith, Ph.D. President and CTO Phone: 304.293.3264 Cell: 304.290.9000 James.Smith@plasma-igniter.com. Plasma Igniter, LLC. Plasma Igniter, LLC. PI has licensed patented, proprietary RF-based plasma ignition systems. What We Do.
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IMPACT Plasma Igniter, LLC
Plasma Igniter, LLC Jim Smith, Ph.D. President and CTO Phone: 304.293.3264 Cell: 304.290.9000 James.Smith@plasma-igniter.com Plasma Igniter, LLC
Plasma Igniter, LLC PI has licensed patented, proprietary RF-based plasma ignition systems What We Do Target markets $3bn US ignition system market, plus foreign mkts Engine manufacturers, ignition system suppliers Target Licensees Jim Smith, President Tom Mahoney, CEO Drew Lowery, Lead Scientist Team
IMPACT Plasma Igniter’s Coaxial Cavity Resonance Ignition System is a disruptive technology that will make current spark ignition systems obsolete. Plasma Igniter, LLC
How It Works • Quarter Wave Coaxial Cavity Resonator (QWCCR) replaces spark plug • Custom electronics generate and control radio frequency • QWCCR magnifies RF signal into a cylinder-sized corona discharge Plasma ignition results in nearly complete, high-speed combustion… Plasma Igniter, LLC
Timed Discharge Pattern Plasma Igniter, LLC
Stoichiometric Condition Burn (φ=1.0) Spark Plug Plasma Plug Plasma Igniter, LLC
Lean Condition Burn (φ=0.8) Spark Plug Plasma Plug Plasma Igniter, LLC
Current CAFE standards require 60% improvement by 2025 Plasma Igniter, LLC
IMPACT…On Fuel Economy Plasma Igniter’s Technology could achieve the needed 60% improvement in MPG by efficient combustion of lean fuel mixtures. • Past independent tests show strong combustion at 80% lean, e.g. 20% fuel savings. • Current testing will determine lean limit,but 60% or more in fuel savings is possible. Plasma Igniter, LLC
IMPACT…On Emissions Plasma Igniter’s Technology reduces emissions from lean combustion at lower temperatures. • Plasma ignition results in “cool” combustion compared to spark ignition. • Result is virtual elimination of NOx. • More complete combustion of lean fuel could virtually eliminate unburnt hydrocarbons. Plasma Igniter, LLC
IMPACT…On Emissions Engine testing now underway at WVU’s CAFEE will determine specific emissions results. Preliminary analysis shows potential to simplify or to even Eliminate the Need for Catalytic Converters Plasma Igniter, LLC
Market – New Engine Applications • The U.S. market for automotive ignition systems is nearly $4 billion • Industrial, stationary, recreational, etc. engines all have ignition systems, representing another multi-billion dollar market • PI offers greater performance, plug & play technology at similar cost • Foreign markets create additional multi-billion sales. Plasma Igniter, LLC
Aftermarket Plasma Igniter has the only known technology that will increase fuel economy and lower emissions for the millions of existing spark-ignited engines! Plasma Igniter, LLC
License-based Business Model • Plasma Igniter, LLC has an exclusive license • Technology developed at West Virginia University • Licensed by ATA, LLC (Jim Smith, principal) • PI, LLC will license to OEMs and Tier suppliers • Licenses likely based on market segments • Construction & agricultural equipment • Recreation vehicles − Automotive • Marine vehicles − Aircraft • Stationary industrial engines • Licenses also likely based on geography Plasma Igniter, LLC
A Possible License Scenario Assumptions: • One license for U.S. passenger cars • U.S. new passenger car sales: 15 million/year • Wholesale cost of PI’s ignition system: $80/vehicle • Royalty rate of 25% (not atypical in automotive) • Market penetration of 10% after 5 years • License fee of 25% of projected 5 year revenue Plasma Igniter, LLC
Resulting US License/Royalty Income 5-Year Total: $112.5m Plasma Igniter, LLC
Investor ROI from this Scenario Reminder: This scenario is based on one license in one market. Assumptions: • 10% royalty to ATA • $5m retained for continued product development, legal fees, license development, etc. • Leaves $96,250,000 for distribution to investors, or $96,250 per unit • Current unit price is $10,000 • Equivalent CD return would require 57.2% interest rate Plasma Igniter, LLC
Progress to Date • The result of a 20 year on-going R&D program • 2 Patents Issued, 1 continuation-in-part, plus 3 additional invention disclosures for global patent submission • Development work currently ahead of schedule • Have raised $500k in investment capital, used to • Meet terms of license agreement with WVU and ATA • Begin industry-recognized live engine testing at CAFEE • Refine electronics, buy parts • Oral commitment for more than $1m • Additional investment required to maintain schedule Plasma Igniter, LLC
Use of Proceeds (ROM) Plasma Igniter, LLC
Key Take Aways Plasma Igniter’s Ignition System provides: • Superior Performance to all known competitors: better fuel economy, lower emissions, multi-fuel combustion capability • Fine ignition control based on real-time data • Proprietary customizable ignition system software • In-cylinder data will unleash new creativity • Potential market is multi-billion • Replacement of the current ignition system is inevitable Plasma Igniter, LLC
Call to Action In 2013, PI, LLC will complete development; conduct independent, EPA recognized performance testing; market and negotiate sub-licenses. • Asking $2.62m in return for 30% ownership • PPM and related documents were issued March 2013, revised in November 2013 • $500k raised to date Plasma Igniter, LLC
This is our opportunity to have an enormous… IMPACT It’s In Your Hands! Plasma Igniter, LLC