Ying Wang (Lead)

Yu Lei (PI)

Mike Wisniewski (Mentor)

Explosive Detection

NSF / ICORP Program

Old Canvas (11/01)

Cheap

Partner’s distribution channels

IP

Manufacture of machine

Production Sensing materials

Wider spectrum

Production

Large scale

Reliable

Easy to use

Facilities

Chemicals

Profit Explosives Detection/CleanupOrganizations (Development Initiative Limited)

Non-profitOrganizations (HALO)

Flir

Smith Detection

Demo

Training

Dedicate Personal Assistance

Field Test

Direct Sale

Sensitivity

Old Canvas (11/08)

Cheap

Partner’s distribution channels

IP

Manufacture of machine

Production Sensing materials

Wider spectrum

Production

Large scale

Reliable

Easy to use

Facilities

Chemicals

Profit Explosives Detection/CleanupOrganizations (Development Initiative Limited)

Non-profitOrganizations (HALO)

Flir

Smith Detection

Demo

Training

Dedicate Personal Assistance

Field Test

Direct Sale

Sensitivity

NSF / ICORP

Revenue Model

• Physical to Physical• Direct sales:

- Products- Service- Refills

NSF / ICORP

How Do Competitors Price

• Metal detector

• Trained dogs

• MEDDS

- Price: ~ $3,000 /unit.

- Speed: 30 m2/worker/day

- Price: ~$12,000 / 6 yrs  (feeding fees not included).

- Speed: 1000 m2/dog/day

- Price: ~$200/km road- Speed: 14 km/team/day

NSF / ICORP

How We Price the Product

- More accurate

- Quicker

- Cheaper

- Area reduction

• Our cost:

• Competitive pricing model

• Value pricing model

- Material cost: $ 0.7 /m2

- Shipping cost

- Customer acquisition cost

NSF / ICORP

Payment Flow

Construction Companies

Mine Sniffer Oil/gas Companies

Field Test Based Proposal

Demand Creation

CUSTOMER

Teste

d

Teste

dIn Progress

Successful field test

More reliable

Attract customers

United Nations

Commercial Landmine Clearance Companies

Need to te

st

Need to te

st

Non-Governmental Organizations (NGOs)

Charitable Trust/ Foundations

Need to te

st

New claims

More reliable

New costs

Lower price

New costs

NSF / ICORP

• Target market– Commercial ~ 20 companies– NGOs ~ 30 organizations

• Package– Reusable wrist watch– Disposable sensors– Access to patients data

• Product development– 4 people in the beginning– $0.5 million– 1 year to develop

• Sales– Start with commercial landmine

companies end of year 1– Start with NGOs end of year 2

• Personnel – Average salary $80,000– Headcount from 4 to 50 in year 3

• Financing – UConn R&D: $50,000– Small Business Innovation Research

(SBIR)$70,000 – Looking for others

Key Assumptions

Price per unit: $ 4 /m2

Raw material ProfitFabrication and shipping

$ 0.7/m2 $3.3 /m2

NSF / ICORP

Key Financial Metrics

• Revenue adequate to cover costs in the short term

• Revenue will grow materially over time

• Profitability gets better as the revenues get larger

• Free cash flow (FCF, the sum of operating cash flow, financing cash flow, and investment cash flow) is stable

NSF / ICORP

Income Statement

Total Revenues

24,000,000

Expenses  

1 Advertising

30,000

2 Cost of goods sold 16,800

3 Furniture and equipment

5,000 

4 Insurance 20,000

5 Salaries and wages

320,000

6 Other

10,000

Total Expenses 401,800

Net Income Before Taxes

23,598,200

Income tax expense 9,439,280

Income from Continuing Operations

14,158,920

NSF / ICORP

Thank You!