Pulse Crystals. Oxide scintillators for X-Ray detectors

and other advanced functional materials

LLC Pulse Crystals December, 2015

Pulse Crystals: advanced functional materials from best development team

Pulse Crystals is a research company which utilizes best Russian scientific resources to synthesize unique quality scintillators, luminophores and composites for global hi-tech industry.

Our locomotive product is state-of-art oxide scintillation crystals (CWO, ZWO, ZMoO etc.)

Extra-large Cadmium Tungstate (CWO) crystals X-Ray Cargo Computer Tomography

What Market needs What we do What is our advantage

Stable high quality of scintillators

Reliable supply Transparent pricing

Higher conversion

We produce extra-large, extra-clear crystals with best-in-class quality

We have studied our market and we will focus on few key customers who needs ~1 ton of CWO crystals per annum. We can do it in 2 years. Our finance model allows us to fix scintillator prices for 3 years ahead at the most competitive point

We will upgrade from scintillator elements to ready-to-use detectors in 2019

We’ve developed unbeatable technology: Precise temperature and weight control Fully automated growth process

One of the best teams in oxide crystals synthesis in the world. 40+ publications, registered know-how, 15+ yrs experience. This will ensure stable quality and supply!

Higher Finish goods yield 10-fold less power consumption Perfect economy! Biggest crystal size in industry

We’ve got access to all necessary technologies for detector development thru collaboration and partnership with SB RAS.

Used in →

($300 mln market)

CWO usage examples

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X-ray inspection of goods and vehicles:

Computer tomography:

CWO pixels array

One X-Ray Cargo inspection unit contains ~1500 cm3 of CWO. There are at least 3500 such units in the world and the number is rapidly increasing

Detectors ring Detector

One CT device may contain up to 1000cm3 of CWO. There are 30.000 CT devices only in US and about 1.000 in Russia

CWO optical elements

Our advantage is a unique technology of CWO synthesis

Out team has modified traditional Czochralski method with precise weight control and adjustable thermal field within the growth zone

We called this unique technology Czochralski method with controlled supercooling at the crystallization front (CSCF Czochralski)

Advantages over traditional and existing techniques::

These KPIs position our crystals beyond any competition regarding both quality and price

Technology has been confirmed with stable and repeatable result for CdWO4, ZnWO4, ZnMoO4. All materials were tested and demonstrated highest quality; part of the samples were sold in Great Britain.

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PHR-8,4%

CSCF Czochralski Traditional method Crystal yield % of raw materials 85% 30-40%

Quality (lattice dislocations density) < 10 /cm2 > 1 000 /cm2 Crystal size 20kg 1kg Electrical power consumption 5 kW 30 kW

Our lab growth unit Giant ZWO crystal (24cm) Perfect scintillation test results CWO samples

Project pay-back period is less than two years Key factors of project economy:

CWO price: $1 700 - $2 000/kg (boule)

$7 000 - $50 000/kg (optical elements)

Raw materials price $140/kg

Unit production capacity 350 kg/year.

Our Project pays back in less than 2 years:

Project scale year 1: 1 production unit (capacity = 1% of market)

IRR = 95% (discount rate is 30%);

Discounted Payback Period = 21 mths

Annual EBITDA starting from year 2: Double the amount of total investment required

Starting from year 2 our facility generates enough cash to set up 2-5 new production units and scale the growth x2-x5 times which will be seamlessly consumed by market even only in Russia.

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$1.7/gram $7-50/gram

Exponential growth

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Our investment proposal • We are looking for investments to set up production unit and launch the business. • In exchange for the partial or full project funding we will offer the project investor a fair

share in a joint-ventured business and attractive return rate on a capital invested. • Investor from the Industry will get the best price for our materials and exclusive supply

conditions. • Full project details including financial model and market study are available for potential

partners.

Further growth of the project company is based on two options: • expanding our share up to at least 30% of $100 mln global CWO market; • development of the advanced materials for applications in nuclear area, in lasers,

mega-science projects etc. Presently our team has got market demand for 2 year of production; 3 large detector equipment manufactures in Russia has confirmed their need for 900+ kilograms of CWO elements/year

We are going to grow ahead of hi-tech market

1. Powerful IR-lasers based on YAG:Nd – We will be able to grow extra-large gain medium (up to Ø140mm*1000mm) in

amounts of 500kg/annually.

2. Monocrystalline luminophores for powerful light emission – We will be able to produce high-temperature, radiation-resistant phosphors applicable

to design a floodlights for aviation and space

3. Monocrystalline ZnSe for IR-optics; ZnTe –for terahertz range – As a result – new materials for communication systems and for “view thru the wall”

optics for special applications

4. Powdered and monocrystalline CdTe – CdTe powder synthesis technology at a low price point already available

– Monocrystalline CdTe could be produced within one year @$100/gram

5. Composite materials of the highest mechanical strength and a working temperature of more than 2000C for hypersonic applications – 3 year investment project

6. Monocrystalline GaAs wafers Ø up to 10 inches with extra-low dislocations density (less than 100 per cm2) – 3 year investment project

Our perspective projects portfolio includes:

Thanks!

We will be pleased to address any questions and comments regarding this material

Please refer to:

Nikita Davydov

LLC Pulse Crystals, CEO

+7(916)500 -91-97

ndavydov@mail.ru

U.S. Homeland Security & Public Safety Market - 2016-2022

14 years have passed since 9/11 and against the backdrop of doom and gloom predictions by some managers in the industry, Homeland Security Research Corporation analysts forecast a strong comeback of the markets, generating a solid 6% CAGR.

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http://homelandsecurityresearch.com/2015/11/U.S.-Homeland-Security-and-Public-Safety-Market-2016-2022/

GB National Security Strategy and Strategic Defence and Security Review 2015 – sets priority for detection technologies (published in Nov, 2015)

• Advances in medical technology, genetic engineering, biotechnology, materials science, big data and robotics hold huge potential for our security and prosperity. For example, new detection and screening technologies can better protect our borders, CNI and crowded places. This technology will be more effective because it can be deployed routinely by the private sector in support of national security.

• 4.26 We will strengthen our ability to detect the movements of people and goods such as illegal firearms that present a threat, through detection technology and better data on land, sea and air passengers and cargo, and through intelligence and targeting. We will modernise and introduce more automation to enable us to deploy our border officials where they are needed most, including an enhanced presence at our sea ports.

• 4.27 Although radiological and nuclear threats are unlikely to occur, we will continue to counter them. We will work with international partners to invest in new technology, to ensure that the radiological and nuclear detection systems at the UK border remain among the best in the world.

• 4.123 We will continue our work to choke off the supply and availability of illegal firearms to prevent their use by criminal or terrorist groups in the UK. We will ensure that we have the right intelligence, detection, and enforcement capabilities and policies, internationally, at the UK border, and within the country.

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https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/478933/52309_Cm_9161_NSS_SD_Review_web_only.pdf