Vc pitch 2014-06_01-b

VARILUX Intelligent Light Conservation

VARI

Pitch DeckJune 2014

Jack I. J’maevReadyTrace, Inc.

14277 Albers WayChino, CA 91710909-437-8390

[email protected]

www.varilux4hps.com


FULL POWERToo Much Light

60% POWERSafe Amount of Light


Problem

• Street Lights – 35% to 50% of City Electricity Costs– Rising Electricity Costs

• Shrinking Municipal Budgets– No Other Economical Options– Willing to Spend Money to Save Money

• Environmental Concerns– Carbon Footprint Reduction– Light Pollution Concerns


Plug & Play in 5 Minutes

Remove Photocell

Install variLux

Save Money


RADIOTELEMETRY

0.2 ACCURACY CLASS METER

RADIO CONTROL

STEPLESS DIMMER

POWER FACTOR PRESERVATION

LUMEN MAINTENANCE

SOFT START

LIGHTNING PROTECTION

variLux Street Light Dimmer


Soft Pipeline From Sales E�orts

NATION STATE MUNICIPALITY QUANTITYUNITED STATES ARIZONA MESA 38,000 UNITED STATES ARIZONA BUCKEYE 7,000 UNITED STATES ARIZONA PHEONIX 120,000 UNITED STATES ARIZONA SCOTTSDALE 20,000 UNITED STATES CALIFORNIA SANTA FE SPRINGS 1,000 UNITED STATES CALIFORNIA NEWPORT BEACH 3,000

MEXICO JALISCO GUADALAJARA 60,000 MEXICO DURANGO DURANGO 60,000

MEXICO BAJA CALIFORNIA NORTE ENSENADA 40,000

MEXICO BAJA CALIFORNIA NORTE ROSARITO 6,000

MEXICO SINALOA CULIACAN 85,000 MEXICO SINALOA MAZATLAN 43,000 MEXICO SINALOA LOS MOCHIS 25,000

TOTAL 508,000

$60-80 Million Early Revenue Potential


Marketing

• $50 Billion Potential Market– 460,000,000 Units Globally– 250,000,000 Units Protected Market

• Lobby Efforts– Public Utility Commissions– Utility Companies – City Government– Lighting Institutions

• YouTube Educational Videos– Dimming Technology– variLux v. LED Video– Metering Systems


Patent Protected Market

Stat

e

Pop

ulat

ion

(Milli

ons)

% o

f Tot

al

Estim

ated

Nu

mbe

r of

Units

Prot

ecte

d M

arke

t

European Union 523 11% 52,300,000 52,300,000United States 312 7% 31,200,000 31,200,000Russia 150 3% 15,000,000India 1,240 27% 124,000,000 124,000,000China 1,350 29% 135,000,000Indonesia 242 5% 24,200,000Brazil 197 4% 19,700,000 19,700,000Japan 128 3% 12,800,000 12,800,000Mexico 112 2% 11,200,000 11,200,000South Africa 51 1% 5,100,000Ukraine 50 1% 5,000,000South Korea 50 1% 5,000,000Algeria 36 1% 3,600,000Canada 35 1% 3,500,000Moroco 32 1% 3,200,000Malaysia 29 1% 2,900,000Saudi Arabia 28 1% 2,800,000Australia 23 1% 2,300,000U.A.E. 8 0% 800,000

Totals 4,596 459,600,000 251,200,000


ONE 4-TERMINAL DIMMERMODIFIED HPS FIXTURE

ONE VARILUX DIMMEREXISTING HPS FIXTURE

10 YEARS SERVICE $70

10 YEARS SERVICE$3

2 MAN CREW$200/HR PER CREW

90 MINUTES PER POLE$300


5 MINUTES PER FIXTURE$10 TOTAL

PLC CONTROL INCLUDED$0

CONTROL SIGNALING

INSTALLATION

ACCESSORIES RADIO CONTROLINCLUDED IN PRICE

$720 TOTALDEPLOYED COST $179

40% ELECTRICITYSAVINGS 40%

DIMMABLE BALLAST, $150 EA.PLC MODULE, $75 EA.

$225

ONE VARILUX$165

EQUIPMENTPROCUREMENT

CELL PHONE HUB, $2000 EA1 HUB/16 LAMPS

$125

QTY. 2 CLUSTER ROOTSSERVICES 1,000 DIMMERS

$1CELL PHONE HUB

Competition – Conventional Dimmer


TWO LED STREET LIGHT FIXTURES

ONE VARILUX DIMMEREXISTING HPS FIXTURE

1 NEW POLEPROCUREMENT: $500/POLEINSTALLATION: $500/POLE

$1000

SAME POLE$0


30 MINUTES PER FIXTURE$200


5 MINUTES PER FIXTURE$10 TOTAL

HIGH RELIABILITY PHOTO CELL$50

NEW POLE PROCUREMENT AND

INSTALLATION

INSTALLATION

ACCESSORIES RADIO CONTROL$4

$1,850 TOTALDEPLOYED COST $179

10% ELECTRICITYSAVINGS 40%

2 LED FIXTURES74 WATT FIXTURES, $300 EA.

$600

ONE VARILUX$165

EQUIPMENTPROCUREMENT

Competition – LED Streetlighting

+

– Active Damping In AC Buck Converter– Continuous Inductor Current In AC Buck

• New Applications:

• Street Light Dimmer


Intellectual Property


Plan

PRODUCT COST REDUCTIONS

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECJUL AUG SEP OCT NOV DEC

2014 2015

1,000 UNIT BUILD

ASIC DEVELOPMENT

LATIN AMERICA / EUROPEAN QUARTERLY SALES

10,00020,000

30,00040,000

PILOT DEPLOYMENT

US LOBBY EFFORTS

50%COGS

REDUCTION

US QUARTERLY SALES

5,00010,000

VEX LED SALES EFFORTS

10,000 10,000


Pro Forma Chart

100,000

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2014 2015 2016 2017 2018

EBIT G & A C O G S

IN$1

,000

's

TOTAL HEIGHTREPRESENTS

SALES


100,000

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2014 2015 2016 2017 2018

EBIT G & A C O G S

IN$1

,000

's

TOTAL HEIGHTREPRESENTS

SALES

UNDER CAPITALIZATION DELAY

Pro Forma Chart – Under Capitalization Delay

POST MONEY EQUITY PROFILE


Series A Venture Round

• Total Round: $3,000,000– Marketing and Sales– First Production Build– Pilot Programs – Cost Reduction


Exit Strategy

• $280 Million NPV in 5 Years• Displace 4-Terminal Dimming

– Europe is “Dimming Savvy”– Two “Nibbles” from Existing

Dimming Companies • LED Industry Vexation

– Displaces LED Roll-Outs– Target for “Buy and Bury”


Conventional Dimming(European “E-Street” Concept)

INCOM

A

REGULATED POSITIVE RAIL

GROUND RAIL

A

B

DIGITAL SIGNALPROCESSOR

INPHS

B

AB

ACTIVEFEEDBACK

ACTODC

PO

WE

RFA

CTO

RC

OR

RE

CTI

ON

PR

E-R

EG

ULA

TOR


variLux 3-Terminal Dimmer

SY

NC

HR

ON

OU

SF

RE

EW

HE

EL

D S DS

IFD


Truth About LED TechnologyEXISTING HPS LIGHT FIXTURES

“EQUIVALENT” LED LIGHT FIXTURES

• ¼ of the Light of HPS Fixtures– LED is ½ as Effective in Creating Light– LED Claims ½ Power is “Equivalent” to HPS– ½ X ½ = ¼ !!!

• Impractical Retrofit Scenarios– Move Lamp Poles Closer to Use ½ Power LED – Retrofit with Equal Power LED

(Not “Equivalent Power”)


LED - No Pay Back - Poor Life Expectancy

Vc pitch 2014-06_01-b

Business

Transcript of Vc pitch 2014-06_01-b