flux drive, pitch deck 5 14-14
TRANSCRIPT
Flux Drive OverviewSmartCOUPLINGs™
‘Drop-in’ Solutions for Energy Savings
‘Right out of the Box’
Save Energy!
• Company overview
• Excess design margin – wasted energy
• Flux Drive solutions
• Market size & strategy
• Existing customers & partners
• Financial details
• Funding Opportunity & use of funds
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Company Snapshot
What do we do?
Target Markets
Partners/Customers
Founded
Manufacture the World’s first energy saving SmartCOUPLING™ for commercial and industrial motor driven systems
Industrial and commercial motor driven applications: Oil & Gas, Mining, Marine, HVAC, Manufacturing
Veolia, Boeing, Weyerhaeuser, Simpson, Sierra Pacific Industries
Value proposition •Energy Savings•Reduced maintenance•Increased reliability
Employees
Headquarters
2007 (first product)
15
Kent, WA
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Company Milestones:– 2007: Flux Drive – Product Ready, First Sales
– 2008-2012: Initial markets cultivated, ASD product launched & refined with proven product acceptance
– 2012 Product Certification Attained, American Bureau of Shipping• Completed Phase 1 of US Navy contract
– 2013: ASD scaled to 300hp, SmartCOUPLING™ released to 125hp
– 2014: Marketing launch and scaling of SmartCOUPLING™ to 500hp• Phase 2 Navy contract award projected in Q4, 2014
Patents:– 11 patents in portfolio with applications in over 35 countries
– Issued patents in USA, Canada, Mexico, South Korea, Singapore, Australia & New Zealand
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Team:– Philip ‘Chip’ Corbin, CEO: Inventor & primary
patent holder. 30+ years experience with rotating equipment & mechanical design
– John Watson, President: 35+ years executive level experience with proven ability to achieve revenue growth & profitability
– Libby Dunkin, COO: 30 years product development experience in high growth companies
– Matt Carlson, VP Sales/Marketing: 25 years tech & clean-tech marketing experience including energy efficient products/services
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THE
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LEM • Due to Excess Capacity Margin (ECM) -
built into all motor systems– All Design Engineers have to oversize systems for
future demand and provide a safety factor– All Systems run with ECM, wasting energy– Matching flow to the actual system demand
required saves energy and reduces maintenance
• Hard starting of all coupled systems is much less reliable– Vibration from standard coupling misalignment
destroys bearings and seals– Excessive flow rates result in wear & tear– Start-ups put shock on equipment and create
high power spikes & high costs
• Existing solutions DON’T target the Major Problem – Wasted Energy!
Wasted Energy! In Motor Driven Systems
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THE
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NThe Flux Drive SmartCOUPLING™: Benefits
• Energy savings!– SmartPOWER™, Air gap spacers
slow load speed to provide POWER savings
– Soft-start feature also reduces kW demand and charges
• Maintenance savings!– No touching parts
– Misalignment & vibration corrected for long seal and bearing life
– Operates in any environment
– It NEVER WEARS OUT!
Parallel Misalignment Angular Misalignment
Air gap shown in
red
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THE
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NThe Flux Drive SmartCOUPLING (FSC): How It Works
– ‘Drop-In’, replacement for ‘Old’ Couplings
• Permanent magnets mount on load shaft
• Induction rotor mounts to motor
• No touching parts (red area shows air gap)
– Motor – provides input torque / power
• Current induced from permanent magnetflux into induction rotor
• Induction rotor becomes an induced magnet
• Induction rotor attempts to couple, rotate with permanent magnet rotor
• Result – Motor Torque is transmitted to load
– SmartPOWER™ - Air gap spacers
• Install to decrease magnetic coupling effect
• Allow load (pumps & fans) to rotate slower –thereby Saving Energy!
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NThe Flux Drive Adjustable Speed Drive (ASD)
• Variable speed for maximum energy savings– Dynamic speed adjustment for automated control
– Superior to electronic speed control devices
– Works with any motor and in any environment (hot, dirty, corrosive, etc.)
– Not susceptible to power quality problems
– No harmful electrical side effects - harmonics
– Decades of useful life with minimal maintenance
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ETMarket Size• $29 billion combined existing global market for couplings and ASDs
• $90 billion addressable market for speed control/energy savings on existing pumps and other equipment
• Flux Drive products address 90% of the 12 million U.S., and 62 million global motor systems
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ETMarket Dynamics: “90/90/10” Value Proposition• 90% of typical plant’s pumps, fans and blowers have Excess Capacity
Margin (ECM) for <2 year payback on SmartCOUPLING™
• 90% of those systems will never need an upgrade to full auto control
• 10% load speed reduction - creates 20+% energy reduction
Growth Strategy:
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Competition only provides adjustable speed ormaintenance benefit – not both!
Electronic VFD
“Flexible” Couplings
– Electronic solutions:• More complex and less reliable
• Create damaging side effects
• Won’t survive in many environments
• Expensive overkill for fixed speed control
• NO MAINTENANCE BENEFITS
– Flexible Coupling solutions: Waste Energy• Alignment critical – cause of excess vibration & wear
• Contain wearable elements - ongoing cost
• Don’t protect against load seizure or hard-start
• NO SPEED CONTROL OR ENERGY SAVINGS
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U.S. Distribution PartnersTR
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International and Vertical Market Distribution Partners
Oil & Gas:
Military/Marine:
Mexico/Latin Am:
Canada:
SE Asia:South Korea:
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Flux Drive Customers
Sierra PacificIndustries
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Customer Installations
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100hp – Hot Oil Pump
50hp Dye Pump
200hp Water Pump
50 hp Cooling Tower Fan
The SmartCOUPLING™ ASDs
50hp water pump 200hp Induced Draft Fan
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LSFinancial Details
Projected financial performance for North and South America
• Based upon adequate and timely access to growth funding in Q2 2014.
• Additional revenue from international growth provided upon request
For financial details, please login to Crowdfunder using your accredited
investor account
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LSCurrent Round
Use of Funds:
• Expanded sales/marketing effort
• Accelerated product fulfillment capabilities
Securities: Series C Preferred Stock
Valuation of the Company: $6,000,000 pre-money
Amount of offering: Up to $4,000,000
Consideration: Cash
Number of shares: 12,472,715 shares
Price per share: 0.3207
Investors: Accredited investors acceptable to the Company.
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Thank You
Contact:Philip ‘Chip’ Corbin, CEO
253-826-9002, Ext. 707