Vc pitch 2013-03-01-2

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VC Pitch Deck Mar 2013

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Vc pitch 2013-03-01-2

  1. 1. VARI LUX Enhance it…Street Light Dimmer www.varilux4hps.co mStepless 3-Terminal Dimmer Jack I. J’maev ReadyTrace, Inc. 14277 Albers WayVARILUX Chino, CA 91710 909-437-8390 Intelligent Light Conservation jjmaev@readytrace .com Page 1
  2. 2. FULL POWER Sized for End of Life Lumen Output 60% POWER Meets RP-8 RequirementsVARILUX Intelligent Light Conservation Page 2
  3. 3. 3-Terminal Means Plug & Play in 5 Minutes Remove Photocell Install variLux Save MoneyVARILUX Intelligent Light Conservation Page 3
  4. 4. Problem • Street Lights – 35% to 50% of City Electricity Costs – Rising Electricity Costs • Shrinking Municipal Budgets – No Other Economical Options – Willing to Spend to Save Money • Environmental Concerns – Carbon Footprint Reduction – Light Pollution ConcernsVARILUX Intelligent Light Conservation Page 4
  5. 5. Beta TestedVARILUX Intelligent Light Conservation Page 5
  6. 6. Market • Street and Area Lighting – 400,000,000 Units Globally – $66 Billion Potential Market – Distribution Partner Identified – “Displacing” Technology • Early Adopters – Mexico – Brazil – Costa Rica – BulgariaVARILUX Intelligent Light Conservation Page 6
  7. 7. Global InterestVARILUX Intelligent Light Conservation Page 7
  8. 8. Competition HPS Baseline variLux Conventional Dimming LED Induction Operation Costs Maintenance Costs Purchase Cost Installation Costs Payback PeriodVARILUX Intelligent Light Conservation Page 8
  9. 9. VARILUX is the New Answer VariLux Street Light Dimmer (SLD) Energy savings calculated relative to HPS luminaries at various power levels depicted in the chart. This energy calculation is based on a cost of $0.10 US per KW-Hr & accounts for Power Factor Correction. Payback Period (P.B.P.) calculated on cost of acquisition and difference in installation labor. Life Cycle Cost (LCC) Savings based on 10 year maintenance and electricity usage relative to existing HPS installations and use of standard dimming profiles on a solstice quarter basis. VARILUX Intelligent Light Conservation Page 9
  10. 10. Non Price Determinates • Non-US Markets – Immediate Demand – Not Influenced by “LED Hype” – Markets Embrace Dimming • United States Markets – Federal LED Incentives – Public Utility Commission Action Required – Non-Company Owned MeterVARILUX Intelligent Light Conservation Page 10
  11. 11. Intellectual Property • 3-Terminal Dimmer – USPTO PCT Search Report – Favorable for Issuance – International Examination – National Stage Filings Complete • USA, EU, RU, IN, JP, BZ, MX • Street Light Metering System – Patent PendingVARILUX Intelligent Light Conservation Page 11
  12. 12. The Technology • Prior Art – 4 Terminal Dimmer – 50% More Cost • VARI LUX – 3 Terminal Dimmer – Power Factor Preservation – Supports Plug & Play – More ReliableVARILUX Intelligent Light Conservation Page 12
  13. 13. Conventional Dimming(European “E-Street” Concept) A ACTIVE DIGITAL SIGNAL FEEDBACK PROCESSOR B REGULATED POSITIVE RAIL POWER FACTOR CORRECTION A B PRE-REGULATOR IN AC PHS TO DC B A IN COM GROUND RAILVARILUX Intelligent Light Conservation Page 13
  14. 14. variLux 3-Terminal DimmerVARILUX Intelligent Light Conservation Page 14
  15. 15. variLux Street Light DimmerVARILUX Intelligent Light Conservation Page 15
  16. 16. Pre Money Capitalization Compensation Options• $4.3 MM Paid-In Exercised – 1.3MM Shares 8% – Avg. $3.30/Share Investors Options Outstanding• 3.5 MM Shares 25% 20%• 1.5 MM Options• 0.6 MM Warrants 7% 17% Warrants• Debt - $1.45MM Outstanding Founder 15% – Preferred Warrants – IP Security Warrants Preferred Warrants – $500M Unsubscribed to be IssuedVARILUX Intelligent Light Conservation Page 16
  17. 17. Post Money Capitalization New• New Money - 39% Stake Options• Prior Stake Holders 9% New – Issued 27% Options Money – Promissory 25% & 25% 39%• New Employee Options Warrants – 9% (Discretionary) 27%• Debt - $1.45MM – Paid from Cash Flow Existing StakeholdersVARILUX Intelligent Light Conservation Page 17
  18. 18. Financials 2013 2014 2015 2016 2017 Sales 6,475,000 30,905,000 43,050,000 57,400,000 82,950,000 COGS 3,500,000 15,400,000 21,000,000 28,000,000 42,000,000 Other Direct Expense 1,438,500 5,281,000 7,260,000 9,680,000 13,890,000 Gross Profit 1,536,500 10,224,000 14,790,000 19,720,000 27,060,000 Operating Budget 1,467,470 3,753,525 6,804,740 5,604,594 6,664,314 Development & Certifications 257,500 715,000 0 0 0 Marketing 33,000 250,000 250,000 250,000 250,000 EBIT -221,470 5,505,475 7,735,260 13,865,406 20,145,686 Tax 0 0 3,831,419 6,239,433 9,065,559 Net after Tax -221,470 5,505,475 3,903,841 7,625,973 11,080,127VARILUX Intelligent Light Conservation Page 18
  19. 19. Financials 2,013 2,014 2,015 2,016 2,017 Sales 1,450,750 26,022,500 43,050,000 57,400,000 82,950,000 COGS 765,000 12,700,000 21,000,000 28,000,000 42,000,000 Other Direct Expense 125,950 2,219,750 3,630,000 4,840,000 6,945,000 Gross Profit 559,800 11,102,750 18,420,000 24,560,000 34,005,000 Operating Budget 2,075,366 4,596,063 5,454,025 6,484,688 7,635,667 Development & Certifications 515,000 480,000 - - - Marketing 88,000 250,000 250,000 250,000 250,000 EBIT (2,118,566) 5,776,688 12,715,975 17,825,313 26,119,333 Tax - - 5,343,344 8,021,391 11,753,700 Net after Tax (2,118,566) 5,776,688 7,372,632 9,803,922 14,365,633 2,013 2,014 2,015 2,016 2,017 G&A 2,804,316 7,545,813 9,334,025 11,574,688 14,830,667 COGS 765,000 12,700,000 21,000,000 28,000,000 42,000,000 Tax - - 5,343,344 8,021,391 11,753,700 Debt Pay-Off 1,950,000 Sales 1,450,750 26,022,500 43,050,000 57,400,000 82,950,000 Investments 3,500,000 0 0 0 0 number of units 8,290 148,700 246,000 328,000 474,000VARILUX Intelligent Light Conservation Page 19
  20. 20. The Plan • Development Complete – No Hardware R&D Required – Market Specific Variations • New Money for Operations – Inventory – Sales and Marketing – Customer Support • Product Cost Reductions • System Control Software – In-House Development or Partner with Existing ProviderVARILUX Intelligent Light Conservation Page 20
  21. 21. Immediate Needs • New Management Team – Funding Appointed CXO and CFO • Additional Bridge Funding ($500K) – Support National Stage Filings – Complete UL Testing • Expansion Capital ($2.5MM) – Inventory – Sales and Marketing – Customer Support – Product Cost Reductions – System Software • Lobby Support – Political Connections in USVARILUX Intelligent Light Conservation Page 21
  22. 22. Exit Strategy • $200MM in 5 Years – Net Present Value of Future Income Stream • Established Lighting Company – Two “Nibbles” Already • LED Industry – Displaces LED Roll-Outs – Buy and BuryVARILUX Intelligent Light Conservation Page 22
  23. 23. The Deal • $ 250K Additional to Bridge • $ 2.5 MM VC Round – $ 1.5 MM 1st Tranche – $ 1 MM 2nd Tranche • $ 200 MM Exit – 5 Years after 1st Tranche – NPV1 at 5 Years $ 225 MM1. NPV – Net Present Value Future Income StreamsVARILUX Intelligent Light Conservation Page 23

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