INVESTOR PRESENTATION OCT-2015 - Quantum...
-
Upload
phungthien -
Category
Documents
-
view
228 -
download
0
Transcript of INVESTOR PRESENTATION OCT-2015 - Quantum...
INVESTOR PRESENTATION OCT-2015
©2015 QuantumSphere, Inc. (QSI) All Rights Reserved.
OTCQB: QSIM
Kevin MaloneyChairman & CEO
949-378-9851
DISCLAIMER:
This presentation is provided for information purposes only and should not be construed as an offer, and shall not form part of an
offer, or solicitation to buy or sell any securities or derivatives. It should not be considered as an invitation to subscribe for or purchase
any securities in QuantumSphere, Inc. or as an inducement to make an offer or invitation with respect to those securities. No
agreement to subscribe for securities in QuantumSphere, Inc. will be entered into on the basis of this presentation.
To the maximum extent permitted by applicable laws, QuantumSphere and its affiliates make no representation and can give no
assurance, guarantee or warranty, express or implied, as to, and take no responsibility for the authenticity, validity, accuracy, suitability
or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation.
FORWARD LOOKING STATEMENTS:
Any information provided with this presentation related to timing, price, volume, and projected revenue are forward-looking statements
and represent management’s best estimates as to its future performance. As such, these statements are not guarantees of future
performance and are subject to high risks, uncertainties, and assumptions that are difficult to predict. Therefore, our actual results
could differ materially and adversely from those expressed in any verbal or written forward-looking statements as a result of various
factors beyond our control.
PAGE 1Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
15% Energy savings
QSI Technology can add up to $45 Billion in Annual Output to the World’s Most Critical Chemicals…
• Ammonia
• Methanol
• Olefins
QSI is Transforming the Chemicals Industry
PAGE 3
• QSI products “turbo-charge” chemical production efficiency
• Lead chemical: Ammonia
~$100B market - critical to servicing global food supply
• Typical ammonia plant can add ~$80M of output for a ~$4M
investment in QSI technology – 100’s of plants globally
• Technology commercially validated in Q1, 2015
10-15% production increase in commercial plant
(5% is considered a “game-changer”)
• Commercial validation motivated Casale to execute JDA
Global leader servicing ~40% of ammonia production
Casale is driving final stages of QSI commercialization
• ~$100M annual revenue potential at 60%+ gross margin
• Volume production capacity in place – backed by extensive IP
• QSI is poised for profitable growth, commencing in 2016
QuantumSphere
OTCQB: QSIM
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
• ~$100B Global Market; ~200M Tons Annually
• Most Critical Chemical Developed in the 20th Century
~82% of Ammonia Used for Agricultural Fertilizer
Quadrupled Productivity of Agricultural Land Use
Enabled Global Food Supply and Population Boom
• Responsible for:
~50% of All Protein Consumed on the Planet
~2% of Global Carbon Dioxide Emissions
• Consumes:
~2% of World’s Energy Supply
~5% of World’s Natural Gas
QSI’s FeNIX Technology Can Significantly Increase Chemical Plant Revenue & Profits:Up to $10B in additional global output in~600 existing ammonia plants worldwide
PAGE 4
Focus on Ammonia - Impact & Opportunity
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
“Turbo-Charging” Ammonia Production
PAGE 5
Standard ammonia catalyst coated with
QSI’s FeNIX Nano Catalyst Accelerator
FeNIX Nano catalyst accelerator
loaded into existing ammonia
converter
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
FeNIX improves ammonia plant efficiency 10-15%;
~$4M investment can translate to ~$80M
in additional production revenue
over the life of the catalyst.
FeNIX™High Performance
Catalyst Accelerator
Partnership Executed with Industry Leader
PAGE 6
• 2015 JDA with QSI covers
ammonia, methanol, others
• Global leader in ammonia
production technologies
• Casale technology utilized in:
~40% of global ammonia &
methanol production
• QSI is exclusive provider of
nano catalysts to Casale
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Casale converter technology critical
to global ammonia production ~600 ammonia plants worldwide can
benefit from increased production efficiency
Casale is Driving QSI Commercialization
PAGE 7
Conservative industry requires key partner and multi-year/multi-step
process for developing and commercializing new technologies
• Multiple forces are driving the need for higher plant efficiencies
• QSI commercialization process now in final stages, led by Casale
• Commercialization Process:
Internal Lab Validation – QSI (2009 – 2013)
External Lab Validation – China (2014)
Co Completed Manufacturing Facility – QSI (2014)
Commercial Ammonia Plant – China (2015)
External Labs – Europe (In Progress)
Initial Commercialization in a Casale Reactor – (Q1-2016)
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
PAGE 8HIGH PERFORMANCE NANOCATALYST PLATFORM TECHNOLOGY // STRICTLY CONFIDENTIAL. NOT FOR DISTRIBUTION. OTCQB: QSIM
Total Market:
~$100B
Total Available Market (TAM):
~$250M
QSI Annual Revenue Potential: ~$100M(Expected Revenue Access Through
Casale Partnership Upon Final Commercial Validation)
•~60 plant refurbishments per year
•~40% of world’s ammonia pr
QSI Ammonia Revenue Model
• ~600 ammonia plants
in operation worldwide
• Up to 10% or ~60 plants
are refurbished each year
• ~40% of global ammonia
production utilizes Casale
reactor design technologies
• Up to ~25 Casale plants
are refurbished each year
• ~$4M per plant revenue to
QSI for FeNIX (on average)
• ~$100M annual revenue
potential requires ~$20M
CapEx investment
PAGE 9
FeNIX Nano Catalyst
Accelerator Technology
Leading Ammonia
Technology Providers
Leading Ammonia
Catalyst Providers
Dominant Commercial
Ammonia Producers
Ammonia Industry Leaders – Value Chain
Casale
JDA
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
QSI’s FeNIX catalyst accelerator technology offers a significant competitive advantage
to leading ammonia technology & catalyst providers
Ammonia Value Proposition
PAGE 10
100’s of ammonia plants globally could benefit from QSI technology
• Demonstrated 10-15% Increase in Ammonia Catalyst Activity
2015 commercial validation; 5% considered significant
• Strong ROI & IRR for Ammonia Producers
based on increased production and/or energy savings
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
For Every
$1MInvestment
in FeNIX
~$20MIn Production
Revenue
~$4MIn EnergySavings
OR
FeNIX ValueProposition:
~25%
Of the
Market
~75%
Typical Ammonia Plant Example:
~$4M investment in FeNIX can
deliver up to $80M of additional
revenue over the catalyst life.
The FeNIX value proposition can
translate to billions in annual
profits for ammonia plant owners
and operators, globally.
Delivering Shareholder Value
QSI Profit Economics
• Gross Margins: 60%+
QSI Production Capacity
• Current Manufacturing Facility:
Ability to Service 2–3 Typical, Mid-Sized Plants per Year
$10-20M in Annual Revenue Potential* *Dependent on production increase vs. energy savings
• Economically Scalable Manufacturing Facility:
~$20M CapEx Investment Can Deliver
up to $100M in Annual Ammonia Revenue
PAGE 11Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Patented High-Volume Production
PAGE 12
Economically Scalable | Highly Automated | Extensive IP
Inputs Vaporize Passivate Package
STEP
1STEP
2STEP
3STEP
4
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
QSI Core Manufacturing Process
Covered by U.S. Patent No: 7,282,167
FeNIX™ Nano Catalyst Accelerator
PAGE 13Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Existing Commercial
Iron (Fe) Catalysts FeNIX™ Applied as Coating to
Commercial Iron (Fe) Catalysts
FeNIX™ Iron (Fe)
Nano Catalyst Accelerator
FeNIX™High Performance
Catalyst Accelerator
Technology Backed by Extensive IP
PAGE 14
• Backed by 9 issued patents
and 3 pending applications
• 12 years of “know-how” and IP
• High surface area Nano FeNIX
increases efficiency and output
• FeNIX applied as coating onto
existing standard catalysts*
• 12kg drum of FeNIX will coat
800kgs of existing catalysts
FeNIX Nano Catalyst Accelerator Packaged in 12kg Metal Drums
High Surface Area FeNIX Nano Catalyst Accelerator
Commercial Iron (Fe) Catalyst for Ammonia Synthesis - UNCOATED
*Commercial Iron (Fe) Catalyst for Ammonia Synthesis - COATED
with FeNIX Nano Catalyst Accelerator
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Large Pipeline of Chemical Opportunities
PAGE 15
QSI may ultimately improve many chemical processes
Olefins
Methanol
Ammonia FilterMethanol
Olefins
Ammonia
Ethylene Oxide
Fluid Cat Cracking
Hydro-processing
Bio-RenewablesPoly-olefins
Fischer-Tropsch
Hydrogen
Polyurethanes Syngas
Sulfur Recovery
Methanation
More… Parafins
~$1.5 Trillion USD in Basic Chemicals Produced Annually
• Up to 90% of all Industrial Processes Utilize Catalysts
---------------------------
Account for
Nearly 1/3 of
Basic
Chemicals
Produced;
~$450B USD
--------------------------
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
~$2B Total Available Market
PAGE 16
Total Market: ~$100B ~$300B ~$50B
Total Available
Market (TAM):~$250M ~$1.5B ~$250M
QSI Addressable
Market*:~$100M ~$300M+ ~$50M+
End Products: Agricultural Fertilizer Polymers, Plastics Paint, Adhesives, Fuels
Product Status:Initial
Commercialization
Lab Validations
in Progress
Lab Validations
Pending
C2-C4NH3CH4O
Ammonia MethanolOlefins
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
*QSI Addressable Market based on blend of increased production and
energy savings, plants directly accessible through Casale partnership.
d
Target Objectives and Next Steps
PAGE 17
QuantumSphere
OTCQB: QSIM
OPERATIONAL
• Execute commercial agreements with
additional industry-leading partners
• Complete follow-on commercial reactor
validation utilizing Casale technology
• Secure purchase orders via existing Casale
channels for FeNIX ammonia catalyst sales
• Further validate follow-on nano catalyst
accelerator products for Methanol and Olefins
• Continue to expand production capabilities to
meet demand and protect IP
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Public Company Background
PAGE 18
• Founded in 2002 as an R&D company
Focused on industrial chemicals sector
• Became publicly traded in 2014; QSIM
• ~$32M in equity financing secured to date
~$7M in cash from board and management
• Recent Stock Price: $2.00
• Market Cap: ~$45M
• ~22.5M shares outstanding
~5.4M in public float
• Exploring capital options for NASDAQ uplisting
QuantumSphere
OTCQB: QSIM
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Management
PAGE 19
Substantial business and technical qualifications to execute QSI strategy
Kevin Maloney, MBACo-Founder &
Chief Executive Officer
• 21 years of experience in sales, marketing, and finance
• Formerly at PIMCO and First American Corporation
• Experienced entrepreneur with previous start-up experience
Gregory Hrncir, Esq.Chief Strategy Officer &
General Counsel
• 22 years of experience in corporate, securities, M&A and technology start-ups
Steve Gillings, MBAChief Financial Officer
• 30 years of accounting experience at multiple public companies
Matthew Griffith, MBAVice President, Operations
• 10 years of experience in commercialization and development of advanced materials and
clean energy systems
Vito Canuso, Esq.Vice President,
Intellectual Property
• 20 years of IP litigation/portfolio experience with top IP law firm Knobbe, Martens, Olson, and
Bear LLC
• Held senior position at Medtronics
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Board of Directors
PAGE 20
Marc Goroff, Ph.D. • Chief Technology Officer and co-founder, Quorum Technologies.
• Serial hardware and software technology entrepreneur
• Earned Ph.D. in Theoretical Physics from Caltech at age 23
Steven Myers
Governance and
Nominating Committee Chair
• Chairman of Dolphin Capital Holdings, Inc., a private equity investment company
• Chairman of Governance & Nominating Committee of Neostem, Inc., a biosciences company
• Former Founder & CEO of SMA, an aerospace & defense mgmt consulting services business
Jeff Palmer, MBA
Strategic Planning &
Operations Committee Chair
• Founder & CEO of Rimports, $150M+ manufacturer of consumer products in major retailers
• Finalist in the Utah regional competition for 2012 Ernst & Young Entrepreneur of the Year
• Former Far East Area Director for ICON Health & Fitness in Hong Kong, fluent in Mandarin
and Cantonese
Francis Poli, Esq.
Lead Director and
Compensation Committee Chair
• General Counsel and Executive Vice President, Cohen and Steers, Inc. (NYSE: CNS)
• Former Chief Legal Officer and Compliance Committee Chair with PIMCO and Allianz
• Former JP Morgan counsel
Robert Venable, MBA/CFA
Audit Committee Chair
• Managing Director and Chief Financial Officer, SW Asset Management, LLC.
• Former Chief Investment Officer at First American Corp, Capital Mgmt Division (NYSE: FAF)
• Vice President in Charge of Global Asset Allocation at PIMCO
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Technology Advisory Board
PAGE 21
Jared Cohen • Director of Google Ideas
• Co-Author with Google’s Chairman, Eric Schmidt; The New Digital Age – Reshaping the Future of
People, Nations, and Business
• Named one of the 100 Most Influential People in the World by Time Magazine – May 2013
• Stanford / Oxford / Rhodes Scholar
Bill Collins • Managing Director of Global Resource Management Consultancy (GRMC)
• Key executive at International Rectifier, ramping the company from $60M to over $700M in Revs
• Frequent industry panelist and guest lecturer at CalTech, USC and LARTA
• Past President, Tech Coast Angels, Los Angeles
Jon Faiz Kayyem, Ph.D. • Member, Caltech Board of Trustees
• Founder, CMS (Acquired by Motorola)
• Chief Technology Officer, GenMark (NASDAQ: GMRK)
Prof. George Olah, Ph.D.Nobel Prize Winner
• Nobel Laureate (Chemistry, 1994) for research involving the generation and reactivity of
carbocations via superacids
• Priestley Medal (American Chemical Society)
• Distinguished Professor of Chemistry and Chemical Engineering and Materials Science
• Director of the Loker Hydrocarbon Research Institute
• Dr. Olah served on the QSI Board of Advisors from Dec. 05 through his retirement in Dec. 14
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Transforming the Chemicals Industry
PAGE 22
• Platform technology “turbo-charges” chemical efficiency
• Lead chemicals: Ammonia, Methanol, Olefins
~$450B combined annual production
• Compelling value prop for 100’s of chemical plants globally
• Lead technology commercially validated in Q1, 2015
10-15% production increase (5% is “game-changer”)
• Commercial validation motivated Casale to execute JDA
Global leader servicing ~40% of ammonia production
Casale is driving final stages of QSI commercialization
• ~$100M/year ammonia revenue potential (60%+ GP Margin)
• Volume production capacity in place – backed by extensive IP
• QSI is poised for profitable growth, commencing in 2016
QuantumSphere
OTCQB: QSIM
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM
Contact Information
Kevin Maloney, MBA Gregory Hrncir, Esq.Chairman & CEO General Counsel & CSO
949-378-9851 818-400-5930
[email protected] [email protected]
PAGE 23
Contact Info:QSI-Nano Catalyst Production Facility; ~4 Metric Tons per Year Capacity
Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM