Business Confidential The Age of the Photon Is Here! Society’s need for higher technology is constantly increasing: better, more of it and faster. The pace of this demand is accelerating: – Health care... remote patient diagnostics, advanced surgery, etc. – Defense … sensing, ISR, directed energy, hyper-spectral imaging, etc. – Automotive … driver’s enhancement, displays, smart highways, etc. – Agriculture … remote sensing, autonomous navigation, etc. – Advanced Manufacturing … ultra-precise tolerances, materials processing, etc. – Communications … terabits per second required; transistor “doubling” according to Moore’s Law no longer possible; Due to this dynamic, technology-based solution delivery is moving away from electrons and toward light (photons)
Business Confidential Billions of dollars, at an increasing rate, are spent each year in light-based research and development. National-level expertise is scattered and in strong demand. Significant instances of light-based technologies commercialization into consumer markets are beginning to emerge Opportunity Hardware – Google Glass (Click to run Video) Software – Life Science (Click to run Video)
Business Confidential Target Markets MarketForecastDescription UAV/ISR :$6.0 billion -FY21“UAV spending will almost double over the next decade from current worldwide UAV expenditures of $6.6 billion annually to $11.4 billion, totaling just over $89 billion in the next ten years…”* Smart Automobile:$2.4 billion - FY17“…ultrasonic, LIDAR, radar and camera-based sensors used in automotive applications will grow rapidly, ….”** Energy Efficient and Specialized Lighting Interior LED solid-state lighting … set to expand over 15x in 5yrs in USA. “…The global solid state LED lighting market is forecasted to increase at an average annual growth rate of 30.9% to nearly $1.3bn in 2013…”*** Optical Communications: $40B expected by 2017“The Optical Communications market reached $19B in 2006...”**** Lasers:growing 14% compared to 2010 “Worldwide laser sales reached $7.46 billion dollars in 2011…”***** Electro-OpticsTotal EO global market to approach $1T in 2017 Total EO Market Trend: - 2009 at $200B - 2012 at $600B
Business Confidential Targeted Technologies Ultrashort Pulse Laser Micromachining Free Space Optical Communications (“Li-Fi”) Plasma Lighting Solid-State Device Innovation
Business Confidential Opportunity Seized LuxNovus focuses on emerging opportunities relative to light-based technologies and businesses: – Creates short-term revenue by: Executing R&D projects Creating and maturing Technologies Developing Intellectual Property – Creates long-term value by: Investing in and maturing portfolio companies Create and grow value in the portfolio
Business Confidential Management Team Mr. Tim Wagler, CEO – 20+ years in Defense and Government engineering services – CEO and Co-Founder of STIMULUS Engineering (www.stimulusengineering.com)www.stimulusengineering.com Dr. Bill Kiser, CTO – 20+ years in Life Science and Academic Electro-optics – Senior Director of the Penn State Electro-Optics Center (www.electro-optics.org)www.electro-optics.org – Co-Founder of Optosonics (www.optosonics.com/)www.optosonics.com/ Mr. Greg Oates, COO – 30+ years in Defense and Automotive electronics engineering and manufacturing services – Director of Strategic Projects at STIMULUS Engineering (www.stimulusengineering.com)www.stimulusengineering.com – Six Sigma Black Belt, IPC Certified Program Manager (CEPM) Strategic Advisors: – Honorable Tom Ridge (Ridge Global, www.ridgeglobal.com, 43 rd Gov. of Pennsylvania, 1 st Sec. of US DHS)www.ridgeglobal.com – John Quain (Buchanan Ingersoll & Rooney PC, www.bipc.com/john-m-quain/, Former Chairman of a PUC)www.bipc.com/john-m-quain/ – Mike Murski (CEO, Murski Breeding, www.murskibreeding.com/html/Home.htm, Advanced Outdoors)www.murskibreeding.com/html/Home.htm – Bob Kruger (Optosonics, www.optosonics.com/, Life Sciences)www.optosonics.com/ – Dr. Karl Harris (Director, Penn State EOC, www.electro-optics.org)www.electro-optics.org – Greg Hays ( Principle of GPH Consulting, www.gphconsulting.com, SPAWAR/SC SME)www.gphconsulting.com
Business Confidential Business Model (Operating Perspective)
Business Confidential Business Model (Holdings Perspective)
Business Confidential Key Process: “ Gaps Filter”
Business Confidential Convergence Model Maturity Approach To Value Creation
Business Confidential Other Differentiators Management Team: – Experience, market knowledge, access to technical experts, advisors and social networks Markets: – Extensive partner network and its intelligence, experienced in both DoD and Commercial Markets Speed-to-Commercialization: – Ability to rapidly fund and mature seed-level ventures to first round of early stage financing Cost: – Low operational overhead vs non-profit competitors
Business Confidential Near-Term Crane Projects (Operations) Shipboard panoramic wide field of view EO/IR imaging, persistent autonomous target detection, ID and tracking with human systems integration at tactically significant ranges. Off-board versus on-board remote weapon optical sight targeting error characterization through analysis, modeling, and measurement.
Business Confidential Near-Term Crane Projects (Operations) Non-mechanical optical beam steering and multi-target tracking/engagement technologies Off-board versus on-board remote weapon optical sight targeting error characterization through analysis, modeling, and measurement.
Business Confidential Other Near-Term Projects (Operations) DOD Rapid Innovation Fund - There will be an upcoming BAA released (target July 2012) for the next round. (See http://www.dodsbir.net/rif/SignIn.asp). Also, here is a link describing the RIF (http://www.acq.osd.mil/osbp/sb/opportunities.shtml). Our network landed a $1.5M opportunity last year. http://www.dodsbir.net/rif/SignIn.asphttp://www.acq.osd.mil/osbp/sb/opportunities.shtml ONR SwampWorks - http://www.onr.navy.mil/en/Science-Technology/Directorates/office- innovation/swampworks-innovation.aspx. Our network landed a $1M+ project last year.http://www.onr.navy.mil/en/Science-Technology/Directorates/office- innovation/swampworks-innovation.aspx ONR TechSolutions - http://www.onrglobal.navy.mil/techsolutions/. Our network is in discussions for a $1M+ project.http://www.onrglobal.navy.mil/techsolutions/ SOCOM SORDAC - http://www.socom.mil/sordac/Pages/Default.aspx. Very target rich environment. Our network is very confident in landing at least one $1.5M project within one year.http://www.socom.mil/sordac/Pages/Default.aspx DARPA – We are aware of a specific Infrared Countermeasures-related opportunity that is Crane- related. Our network is investigating this project and a few others in the range of $1M+.
Business Confidential Near-Term Investment Opps (Holding) Company: Straylight ‘Tight Beam’ Plasma Lighting http://straylightoptical.com/ http://straylightoptical.com/ Commercialize plasma lighting into narrow light beam and extremely energy-efficient configurations for outside application (e.g., architectural lighting, military applications, etc.). Commercialize Crane-related ultrashort pulse laser technology for application into biopolymer stent production. Partnering discussions with a leading life science company relating to technology refinement and manufacturing are underway. Company: Aurora Life Science Product Micromachining Commercialize existing microchip integration technology. Addresses FPA manufacturing yield, planarity control, and scalability complexity. Disruptively drives down the cost of larger format arrays. Company: Indiana IC Quilted Focal Plane Arrays (FPA) http://www.indianaic.com/home http://www.indianaic.com/home
Business Confidential Financials $500,000 in financing is required to achieve plan. This allows for a 15% cash reserve at the low point in cash.
Summary Light-based technologies, particularly in the software realm, are maturing to extremely disruptive potentials. New and lucrative markets are arriving each day. A world-class team has been formed. LuxNovus is prepared to seize this opportunity. Microsoft’s new revolutionary image processing technology (Click to run Video)