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Investor Overview April 2013. www.smartershade.com. SMARTERSHADE PRODUCT . Patented, film based shading system integrated into a window. SMARTERSHADE. SMARTERSHADE PLATFORM. A window can go from dark to clear with a physical shift of one film against another.
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Investor Overview April 2013 www.smartershade.com
SMARTERSHADE PRODUCT Patented, film based shading system integrated into a window. SMARTERSHADE
SMARTERSHADE PLATFORM A window can go from dark to clear with a physical shift of one film against another. • Intellectual Property (1 patent issued, 2 pending) • Use of special films to control light transmission • Pattern on films required to achieve tinting effect • Methods of film manufacture • Mechanical (manual) control systems SMARTERSHADE
MARKET LANDSCAPE EXISTING – Shading systems for light, heat, and privacy control. + + 20 -30% ENERGY SAVINGS $13B MARKET = Last < 5 years Limited Energy Savings Awkward EMERGING - “SMARTGLASS” = Glass that changes tint when voltage is applied. = SMARTERSHADE
ARCHITECTURAL SMARTGLASS MARKET @ projected SmarterShade cost $5.3B Market @ current SmarterShade cost $4.2B Market @ projected EC cost @ cost of current technologies Cost per square foot (declining) SMARTERSHADE
HOW WE ARE UNIQUE • Benefits of smartglass at ¼ of the price • No voltage = no electrician needed to install • Simple user interface = no awkward cords or rods • 4 to 5 times longer life vs. blinds/ shades • Do not need to purchase a new window SMARTERSHADE
CAPITAL LITE VALUE CHAIN FABRICATION of SMARTERSHADE SYSTEM FILM SUPPLY WINDOW OEMS SmarterShade Contracted Supply Integration of System into a Window SmarterShade Customers Customer Owned Channel to End User • SmarterShadeRelationships SMARTERSHADE SMARTERSHADE
GO TO MARKET PLAN 1 Interior Windows 2 Residential 3 Commercial SMARTERSHADE
BUSINESS MODEL ROYALTY PAID TO SMARTERSHADE = % of CUSTOMER SALES 15% FILM + FULL FABRICATION IP 10% FILM + PARTIAL FABRICATION IP FILM ONLY 5% COMPONENTS OF SALE COMMERCIAL RESIDENTIAL INTERIOR WINDOWS SMARTERSHADE
FINANCIAL PROJECTIONS Business model drives high profitability and scale. 3 Commercial 2 Residential 1 Interior SMARTERSHADE
MILESTONES We have invested in technology development and are now preparing for product launch. Commercialization (2012 +) Technology Development (2008- 2011) • Company Founded • $100K from 5 customers (development fees) • Films passed tests for initial applications • Built IP Position • First patent issued • Window system development completed • Market 1 launch (Nov 2013) • Market 2 launch (Q2 2014) • Secured film supply SMARTERSHADE
FUNDING SOURCE/USES PLANNED $2M CURRENT $1.3M Grant match (500K) Equity funding (1.5M) Grants (870K) Conv notes (325K) Customers / bootstrapping (155K) SOURCES: R&D Patenting Customer acquisition Value chain development Launch for interiors market Customer acquisition for residential market Utility and foreign patent filing USES: SMARTERSHADE
CORE TEAM • Mike Stacey, CEO • Successful owner/ operator of home renovation businesses • 12 years mgmt consulting - focus on energy industry • MBA University of Notre Dame • BS Supply Chain Management, Penn State • Ryan Tatzel, Film Development • Expert in optical films and film patterning • BS Chemical Engineering, University of Notre Dame • Will McLeod, Window Systems Development • Industrial designer and mechanical engineer • MS and BS Engineering; BA Design, University of Notre Dame • Ted Willoughby, Business Development • BS in Business, California State • Windows and building products industry expert • Former business development executive for Milgard Windows SMARTERSHADE
SUMMARY PROTECTABLE PLATFORM TECHNOLOGY SIMPLER, LOWER COST “SMARTGLASS” ALTERNATIVE CAPITAL EFFICIENT VALUE CHAIN BUSINESS MODEL CAPTURES FULL VALUE OF OUR IP CLEAR PATH TO LAUNCH FIRST PRODUCT SMARTERSHADE