RHT SPECTRASAFE

RHT Advanced Security

Technology

Business and Technology Opportunity

RHT SPECTRASAFE

Introduction

The Situation Today:

New and emerging threats of human carried explosives appear almost daily. Most of these threats cannot be detected by current security systems. A new approach is needed.

We have that new approach.

RHT SPECTRASAFE

Introduction

The Company:

Founded in 2011 to develop and commercialize a new scanning technology for detection of explosives and other hazardous materials in a wide range of public settings including airports, schools, rail and other transportation centers, sporting events, public buildings, and wherever people gather.

RHT SPECTRASAFE

Introduction

The Company:

It has been self funded to date, and is now at the point where additional funds are required to complete engineering development and proceed to initial production.

RHT SPECTRASAFE

Introduction

The Value Proposition:

To provide the first effective and affordable solution to protect life, health, and property from human borne threats including, explosives, weapons, drugs, and related hazards – saving lives and potentially billions of dollars.

Customers range from security agencies to educational institutions, hotels and convention centers, malls, owners of large buildings, transportation and shipping services, ….

RHT SPECTRASAFE

Introduction

Unique benefits:

• Effective – detects threat materials carried on, in, and near the body and eliminates error prone human operators.

• Affordable – automated identification eliminates largest cost of ownership – trained operators.

• Fast – designed to detect materials carried at normal walking speeds – 2 to 10 times faster than other systems.

RHT SPECTRASAFE

Team

The core team is in Silicon Valley with a presence in Virginia. Members combine many years of experience in Engineering, Manufacturing, Quality/Regulatory, IP, Computer Science and other areas, with academic and research experience in Microwave Electronics, Radiation Physics, Biophysics, Computer Science, and Mathematics.

David Robb – Founder, microwave systems, biophysics, development engineering

Igor Tilinin – PhD Physicist, radiation physics, mathematics

John Tugwell – Quality and regulatory systems, medical device manufacturing, microwave technology

Michael Hentschel – CFO – former venture capitalist, started many companies nationwide, and arranged multi-million dollar funding deals

Gordon Grant – CSO Business Development – large account strategic sales track record

RHT SPECTRASAFE

Opportunity

In recent years, there have been many threats as well as actual events in many parts of the world where explosives carried by human agents have posed hazard to public safety and security.

Current approaches to detection of human borne explosives have been only marginally effective. Most systems available are expensive to own and operate, have very low detection rates, are slow, and are actually unable to detect the newest threats.

There is wide recognition that effective solutions are desperately needed, but until now there has been nothing available to realistically meet the needs.

RHT SPECTRASAFE

Problems with Current Security Tech Alternatives

Magnetometry – limited to metallic objectsmany dangerous items and substances not detected – liquids, ceramics, plastics, explosivesmany false positives

Millimeter Wave Reflectometry – produces an image of body beneath clothingExtreme privacy issuesDoes not penetrate skin to detect items in body cavities

Backscatter X-Rays – produces an image of body beneath clothingExtreme privacy issuesSignificant increase in cancer risk, especially skin, thyroid, and breastIonizing radiation

Hand search – involves direct personal contactExtreme privacy issuesHigh risk for security personnelCurrently generating widespread controversy, including lawsuits

RHT SPECTRASAFE

Opportunity

There is a significant current and growing market for our solution.

• TSA alone has spent over $500M to equip 100 airports with scanning systems.

• http://www.homelandsecurityresearch.com/ estimates a market in excess of $4B growing at over 33% CAGR in Standoff Person-Borne and Vehicle-Borne Explosives & Weapon Detection: Technologies and Markets – 2012-2016

• At least half of this market can be served by our technology solution.

• Further, a solution with good cost of ownership will open additional new markets of comparable or larger size to those already identified.

RHT SPECTRASAFE

Detection System for Airport Use

Transmitter

Indicator – shows position of detected material

Signal generator and computer – provides remote location with details of detected substances

Interference shield

Receiver

Simple, open, walk-through system increases throughput and user

acceptance

Solution

RHT SPECTRASAFE

Solution

• RHT uses low power radio waves that pass through the body.• The radio waves are affected by the substances they encounter during passage.• Each material has a unique “signature”.• Special signal processing methods identify the signatures of the materials encountered – including explosives, drugs, contraband.• Results can be displayed at the inspection point, reported to a network center, or communicated to authorities.

The solution is: Fast Reliable Safe Easy to use

RHT SPECTRASAFE

Detection System for Airport Use

PASS

ALERTMaterial: PETN at 135 cm above floor

Example operator panel indications

RHT SPECTRASAFE

Competition

RHT SPECTRASAFECompetitor 1: Millimeter wave system – does not

detect body cavity objects and substances.

estimated $150k + customization/installation $250kHigh operating costs – requires trained operators

Competition

RHT SPECTRASAFE

Rapiscan

This image of an adult man was taken using a Rapiscan Secure 1000 backscatter X-ray scanner

(Credit: John Wild (johnwild.info))

Read more: http://news.cnet.com/8301-31921_3-20022477-281.html#ixzz153LVIdXk

Competitor 2: X-ray system – significant increase in risk of skin and other cancers

estimated $150k + customization/installation $250k

High operating costs – requires trained operators

Competition

RHT SPECTRASAFE

Key Milestone – October 19, 2011

PASS

ALERTMaterial: PETN at 135 cm above floor

On October 19, a key development milestone was reached. Reliable identification of materials in a single channel was obtained, clearly demonstrating the viability of the technology. A video recording was prepared to document the event.

Five substances were in the database: - water - shield material - paperback book - hand - nitrate – similar to material used to make simple explosives.

Samples of the various materials were placed in the channel path. The system properly identified each and presented screens similar to the two shown at right. The system correctly identified the nitrate sample as a hazardous material and triggered the “ALERT” screen.

RHT SPECTRASAFE

18

Current Status

SpectraSafe has continued work on hardware and software refinement, as well as validation of the methods and algorithms.

• Developed second generation prototype hardware (third generation is production prototype)

•Developed software tools for test, validation, and database construction

•Algorithm refinement is in process

•Hardware Verification and Validation is proceeding

RHT SPECTRASAFE

Prospective customers

•Homeland security•Secret Service•Coast Guard•Schools and Universities•Stadium and Auditorium owners•Hotels and convention centers•Municipal facilities, including subway and rail•Embassies

RHT SPECTRASAFE

Next steps

Complete development work in:•Software algorithms•Hardware configuration•Computing platform•Materials database

Design and develop product(s)•Airport system•Turnstile system•Portal system

RHT SPECTRASAFE

Current Vendors

• Present scanning systems cost from $150K to $250K per unit, and up to $435K installed.

• Scanning System Manufacturers include:

1. L-3 Communications (airport reflected millimeter wave)

2. Rapiscan Systems (current controversial airport X-ray)

3. Smiths Detection Group (cargo/baggage X-ray)

4. General Electric (cargo/baggage X-ray)

5. Tyco International (cargo/baggage X-ray)

6. United Technologies (cargo/baggage X-ray)

7. Siemens and Hitachi (cargo/baggage/container X-ray)

Our system will cost <$40k to build, so will be under $200k installed, for much more utility and less controversy.