1. Investor Presentation
Good evening, my name is Mike Stacey and I am the CEO and Co-founder of SmarterShade.
SmarterShade finally makes smartglass simple and affordable.
Investor Presentation
November 2012

2. SMARTERSHADE PRODUCT SMARTERSHADE
Windows that “tint on command” to control glare, and privacy, and energy…
Our vision is to have windows that tint on command.
Instead of hassling with blinds or shades, you could flip a switch and have windows go from clear to dark with a touch of a button. Instead of turning down your thermostat, you can dim your windows to control temperature.
The benefits if this type of a product include solar heat gain control; as well as glare and privacy which may be equally or more important in some applications.
SMARTERSHADE

3. THERE MUST BE A SIMPLER SOLUTION !
PROBLEM
Traditional treatments have wide adoption, BUT…
Awkward to use
Interrupt view
Mechanics break
Limited Energy Control
The Department of Energy named smart glass #1 “must have technology”, BUT…
Too expensive
Requires special wiring
Slow switching
Not a privacy application (does not replace blinds)
PROBLEM
You may have heard of technology that sounds like this before. Smart glass technology has actually been around for over 20 years. The department of energy even named smart glass to the top of the list of "must have" technologies for buildings. The question is if there is so much demand, where is it? Why isn't it on your problem windows, or the windows right here? The problem is price. 
The cost per square foot is through the roof and the reality is that at this price there is going to be virtually no market penetration. 
<build>
another issue is complexity. It takes hundreds of millions of dollars to build one of the lines needed to create each variety of electronic dimming glass. 
And even after all this development, this is the result
<point to image>
here is the clear state, and this bluish tint is as dark as it gets. You would still need to add blinds or shades for privacy. It just isn't good enough. 
THERE MUST BE A SIMPLER SOLUTION !
SMARTERSHADE

4. SOLUTION SMARTERSHADE
A simple approach to smart-glass allows any window to be a smart window.
Unique Features of SmarterShade:
Can be completely wire –free
Retrofit or new window
Instant Switching
Privacy application
Roll to roll film base = low cost
We asked ourselves, what is the simplest way to achieve tint on command? Well here it is. This is a pair of polarizers. A cheap, off-the-shelf film. When one is rotated with respect to the other, you can go from clear through different shades all the way to dark. This would work great, if we had round windows.
But this won't work for square windows. So smartershade invented a proprietary, patent pending way of using materials to shift one panel a fraction of an inch to go all the way from clear to dark.
We integrate these special films EITHER into an aftermarket shading system or into a drop in window cartridge that we sell to window and glass fabricators. We have an enabling technology that makes glass smart.
At a high level, this is how the technology works.
SMARTERSHADE

5. DYNAMIC SHADING LANDSCAPE
Platform
Glare
Privacy
Energy
Variable Tint
Blinds/ Shades
Electrochromic
Liquid Crystal (PDLC)
Thermochromic
SmarterShade
Existing Smartglass Technologies
UNIQUE PROPOSITION AND DEFENSABILITY
No current or wiring
Can be retrofit or new window
Simplified mechanics
Intellectual Property covers entire platform (film and window system)
Film technology and mechanical system are platform for many products
WE HAVE CREATED AND PROTECTED AN ENTIRELY NEW CATEGORY
SMARTERSHADE

6. SCALABILITY Initial Market Focus SMARTERSHADE
SmarterShade is an enabling technology that makes glass smart.
Windows
Residential
Commercial
Initial Market Focus
Benefits:
Energy control
New construction or retrofit
Fits many types and sizes of windows
Leverages existing glass/ window supply chains
Transportation
Automotive
RV/Boat
Airplane
SmarterShade
Technology
Home
Appliance
Bathroom
We have created a versatile light and heat control platform that is scalable to a number of applications across industries.
Our first focus is in the windows segment (which we will detail out further); however we have been getting attention from other areas including automotive and interior office partitions.
Other
Office
Military
Etc…
SMARTERSHADE

7. MARKET - WINDOWS SMARTERSHADE
Addressable market = residential and commercial windows.
$5.3B Market
@ projected SmarterShade cost
$4.2B Market
@ current SmarterShade cost
@ projected EC cost
@ cost of current technologies
This graph represents how cost impacts market size. This objective market research conducted by a window company partner that is considering entering the market.
At the current cost of these technologies (80-120), there is virtually no market. (niche and showcase).
The leading technologies are projecting to be able to get to 50 psf. This barely moves the needle in terms of market size. We have confirmed that this is the lowest that they can possibly get to from a number of industry experts and investors that have looked at these technologies in detail. Note that this is after these companies have brought 100m plants online.
Our starting point is $30 psf which equates to a $4.2B MARKET!!! This is 40 times the size of the market today. We are able to do this because of a smaller bill of materials and the fact that we utilize roll to roll mfg methods.
Within the next few years, we have clear visibility to get to the $15 psf mark- expanding the market to $5.3B! The bottom line is that because of our cost advantage we are creating a huge new market!
We are actively researching ways to get down to $10-$15 psf. This includes looking at alternative film supply method.
Cost per square foot
SMARTERSHADE

8. VALUE CHAIN SMARTERSHADE SMARTERSHADE SPECIALTY FILM
FABRICATION of CARTRIDGE
GLASS / WINDOW SALES
SmarterShade suppliers
3-4 strategic relationships
SmarterShade customers
5 pending JDAs
Our competition is currently investing 100’s of M’s just to get to 50psf. WE are different in we don’t have to build our own manufacturing capability. We take advantage of existing industries to produce our product.
We have vetted our supply chain and have multiple world class suppliers that want to work with us.
Our assembled product is a simple drop in window cartridge. We don’t have to build a whole window (like our competitors).
All of these things result in the fact that we are a capital light business.
SmarterShade products
via JV partners
SMARTERSHADE
SMARTERSHADE

9. INVISIBLIND SMARTERSHADE SMARTERSHADE
This slide represents our first two products:
Invisiblind is something that we are planning to launch in the next 12 months and followed up by SmarterShade within 6 months.
The difference is that Invisiblind is a 2 state (clear/ dark) product while SmarterShade offers continuous shading.
The unit shown on the left was built for us by a global skylight manufacturer and represents an aftermarket shading system.
Continuous change
2 State
SMARTERSHADE

10. RESIDENTIAL WINDOW/ DOOR
GO TO MARKET PLAN 1 2 3
RESIDENTIAL WINDOW/ DOOR
TRANSPORTATION
COMMERCIAL WINDOWS
Over the last several months we have conducted quite a bit of customer exploration and discovery. The result is that we believe we have found the key entry points and partners that will allow us to achieve speed and scale.
We have started to engage with several of these partners in the doorglass and skylight segment and are working with a few of these on joint development efforts.
We are also negotiating a joint development agreement with a large glass fabricator that can serve these initial segments as well as several others.
By entering the market quickly in these segments and having partners that can scale; we can achieve high growth across the residential and commercial segments.
Market entry: Q2 2013
2017 sq ft sold 4M
# of fabricators: 1-2
Market entry: Q3 2014
2017 sq ft sold: 5.7M
# of fabricators: 10+
Market entry: Q1 2014
2017 sq ft sold: 3.5M
# of fabricators: 4-6
SMARTERSHADE

11. COMMERCIALIZATION MILESTONES
Timeframe
Details
Supplier JDA
Dec 2012
Liquid Crystal and a film supplier
Fabricator JV/ JDA
In discussions with multiple companies in U.S., Canada, and Europe
Gen 2 Prototype
Jan 2013
Manufacturable prototype for 1st product
Durability testing
Apr 2013
Lifecycle testing of components and system
File international patents
File in specific countries outside of the U.S. where end product will be sold
Supply Chain Readiness
May 2013
Final product development, manufacturing tooling
Product Launch
Jun 2013
Launch product 1 (Invisiblind) for select applications
SMARTERSHADE

12. Additional Business Advisors
TEAM
Management Team
Technical Resources
Mike Stacey, CEO
12 years mgmt consulting - focus on energy industry
Prior owner/ operator of home renovation businesses
Ryan Tatzel, Film Development
Construction industry and machining experience
BS Chemical Engineering
Will McLeod, Window Systems Development
Industrial design/ mechanical engineer
MS engineering
Ted Willoughby, Business Development
Window and building products industry veteran
Former sales executive for Milgard Windows
Brandon Tinianov**, Former CTO Serious Energy
Rick McCurdy, Former VP Product Development at Milgard Windows
Court Hiniricher, Windows engineer
Clay Shepherd, Display industry expert
Colin Lines, Optics analyst
Chris Riordan, Mechanical engineer
Our team brings together passionate founders with complementary skills and an advisory team with the right mix of domain and strategy experts.
I have over 12 years experience as a project manager and management consultant. I managed projects with budgets over $10M budgets.
I developed my passion for entrepreneurship by running a 10 employee painting franchise as a undergraduate College. I learned how to sell, how to manage, and how to persevere. It was an incredibly rewarding experience and I was able to fund the remaining 2 years of my college tuition. This experience drove me to revisit entrepreneurship as an MBA student at Notre Dame 5 years ago.
This is when I met Will and Ryan who had developed the original concept behind SmarterShade. Together we raised over $50k in seed money based on an initial business plan and used the money to fund R&D. After a focus on technology I came back full time in July 2011.
Together we have achieved a tremendous amount and we have surrounded ourselves with the right advisors and strategic partners.
Additional Business Advisors
Tom Hood**, Former CEO Southwall Technologies, Will Glaser*, Founder of Pandora,
Marc Tarpenning, Founder of Tesla Motors, Steve Abramson, President Pace Windows
SMARTERSHADE

13. BUSINESS MODEL 1 2 3 SMARTERSHADE
License application and pattern to film makers
Joint Development/ Partnership Opportunity 2
Product sales of full window systems
Joint Venture Relationships with initial Glass Fabricators
Because we’re capital lite, we will be able to scale quickly to be a 60M business in 5 years.
The key driver is that we’ll have already gone through the basic building blocks of design, test, and certification in 2012, so that we can expedite the process of launch with new customers and markets
Beyond year 5, we will extend our product platform and continue on a high growth trajectory. 3
License of window system manufacturing IP
JV/ Strategic Partner License of Manufacturing Process
Phase 2
SMARTERSHADE

14. FINANCIAL PROJECTIONS
Scale achieved through strategic partnerships and adding new markets, and licensing.
Application/ Mfg Licensing
Market 3 Launch
Market 2 Launch
Because we’re capital lite, we will be able to scale quickly to be a 60M business in 5 years.
The key driver is that we’ll have already gone through the basic building blocks of design, test, and certification in 2012, so that we can expedite the process of launch with new customers and markets
Beyond year 5, we will extend our product platform and continue on a high growth trajectory.
Market 1 Launch
SMARTERSHADE

15. EXIT OPPORTUNITIES SMARTERSHADE Sale Price: $15-$25M
Opportunity 1
Opportunity 2
Q4 2012
Q1 2014
Q4 2015
Q1 2017
Suitors
Window: Prelco, Milgard, Nashville Tempering etc…
Film: LG Chemical, Merck, BenQ, etc…
Glass: St. Gobain, AGC, PPG, etc…
We’ve made tremendous progress in the last 12 months in building our company.
Some highlights include the development of a comprehensive IP portfolio, as well as acquiring additional film samples.
Raising over $400 in funding from grants and a note from KP; engagement with multiple customers in prototype development
and building our organization here in the bay area.
SMARTERSHADE

16. FUNDING SOURCE/ USES $1.3M $3M SMARTERSHADE CURRENT PLANNED SOURCES:
Window system final development
Utility and foreign patent filing
Supply chain readiness
Full lifecycle testing
Product launch
Strategic (500K)
Grant match (500K)
Equity funding (2M)
Grants (870K)
Conv note (325K)
Customers / bootstrapping (145K)
SOURCES:
R&D
Patenting
Customer acquisition
Value chain development
USES:
The 600K that we are currently looking to raise will be used to acquire additional customers, file new patents , go through full lifecycle testing, prepare the supply chain and launch a product within the next 12 months.
Positive Cash flow from Operations in 12 months
Only funding needed to launch our first products.
Additional raise in 12 months : $1.5- 2M = for operational scale up.
SMARTERSHADE

17. SUMMARY SMARTERSHADE BREAKTHROUGH AND SCALABLE TECHNOLOGY
DISRUPTIVE PRICE CHANGE CREATES HUGE NEW MARKET
CUSTOMER TRACTION IN MULTIPLE SEGMENTS
MANUFACTURING PARTNERS HAVE ABILITY TO MEET DEMAND ACROSS INDUSTRIES
LOOKING FOR THE RIGHT INVESTORS
SMARTERSHADE