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PRESENTATION	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
E	
  X	
  E	
  C	
  U	
  T	
  I	
  V	
  E	
   S	
  U	
  M	
  M	
  A	
  R	
  Y	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Corrosion	
   causes	
   significant	
   expenses	
   across	
   the	
   market	
   as	
   products	
   fail	
  
unexpectedly	
  or	
  need	
  to	
  be	
  replaced	
  in	
  an	
  accelerated	
  timeframe.	
  Corrosion	
  can	
  
even	
  cause	
  vital	
  components	
  to	
  fail	
  that	
  lead	
  to	
  severe	
  injury	
  or	
  death.	
  Despite	
  
the	
   critical	
   importance	
   of	
   protecting	
   mechanical	
   and	
   electrical	
   parts	
   from	
  
corrosion,	
   the	
   anti-­‐corrosion	
   and	
   electric	
   protection	
   products	
   that	
   dominate	
  
the	
  market	
  are	
  based	
  on	
  last-­‐century	
  technology.	
  Nanoprotech	
  FL,	
  LLC	
  (d.b.a.	
  
Nanoprotech	
   and	
   also	
   referred	
   to	
   as	
   “the	
   Company”)	
   is	
   a	
   start-­‐up	
   distributor	
  
of	
  the	
  proven	
  line	
  of	
  Nanoprotech	
  products	
  that	
  are	
  based	
  in	
  nanotechnology.	
  
Nanoprotech	
   drives	
   away	
   100%	
   of	
   water	
   and	
   humidity	
   within	
   seconds	
   of	
  
application,	
  forms	
  a	
  flexible	
  layer	
  that	
  prevents	
  future	
  contamination	
  yet	
  is	
  only	
  
two	
  to	
  three	
  microns	
  thick,	
  lubricates	
  mechanical	
  action,	
  and	
  is	
  durable	
  enough	
  
that	
   typical	
   applications	
   will	
   last	
   for	
   at	
   least	
   one	
   year.	
  Nanoprotech	
   has	
   been	
  
demonstrated	
  to	
  allow	
  electric	
  drills	
  to	
  operate	
  fully	
  while	
  underwater	
  and	
  to	
  
	
  
	
  
	
  
	
  
3	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
outperform	
  all	
  other	
  anticor	
  products	
  after	
  mere	
  hours	
  of	
  exposure	
  to	
  salt	
  spray.	
  
Nanoprotech	
  products	
  have	
  proven	
  to	
  be	
  successful	
  in	
  Europe,	
  Asia,	
  and	
  Africa,	
  
and	
  Nanoprotech	
  FL	
  is	
  bringing	
  modern	
  corrosion	
  protection	
  to	
  the	
  Americas.	
  
	
  
	
  
The	
   market	
   for	
   Nanoprotech	
   is	
   tremendous.	
   Since	
   its	
   release	
   to	
   consumers	
  
in	
  2010,	
  over	
  $100	
  million	
  of	
  Nanoprotech	
  has	
  been	
  sold,	
  and	
  the	
  Company’s	
  
global	
   marketing	
   and	
   distribution	
   efforts	
   are	
   only	
   beginning	
   to	
   ramp	
   up.	
   The	
  
Company	
   already	
   has	
   distribution	
   agreements	
   worth	
   an	
   estimated	
   $970,000	
  
per	
   year.	
   The	
   Company	
   estimates	
   that	
   it	
   can	
   readily	
   surpass	
   the	
   $181	
   million	
  
in	
   annual	
   revenue	
   generated	
   in	
   the	
   Americas	
   by	
   the	
   competing	
   product	
   WD-­‐	
  
40,	
  a	
  water	
  dispersant	
  and	
  lubricant	
  which	
  is	
  not	
  sufficient	
  to	
  meet	
  the	
  needs	
  
of	
   knowledgeable	
   marine,	
   automotive,	
   or	
   aerospace	
   customers	
   –	
   needs	
   that	
  
Nanoprotech	
  can	
  and	
  will	
  meet.	
  Rigorous,	
  independent	
  testing	
  has	
  proven	
  that	
  
Nanoprotech	
  is	
  superior	
  to	
  all	
  competitors	
  in	
  terms	
  of	
  ease	
  of	
  application,	
  low	
  
health	
  risks,	
  effectiveness	
  of	
  protection,	
  and	
  durability	
  of	
  the	
  nanotech	
  coating.	
  
The	
  Company	
  only	
  needs	
  to	
  inform	
  its	
  potential	
  consumers	
  to	
  acquire	
  much	
  of	
  
their	
  business.	
  
	
  
	
  
In	
   order	
   to	
   build	
   a	
   broadly	
   efficient	
   and	
   profitable	
   business,	
   Nanoprotech	
  
is	
   developing	
   its	
   customer	
   base	
   through	
   a	
   combination	
   of	
   direct	
   sales	
   and	
  
a	
   growing	
   base	
   of	
   distributors	
   and	
   licensed	
   representatives.	
   Nanoprotech	
  
also	
   intends	
   to	
   construct	
   a	
   manufacturing	
   facility	
   in	
   the	
   U.S.	
   that	
   will	
   serve	
  
customers	
   throughout	
   North,	
   Central,	
   and	
   South	
   America.	
   The	
   Company	
   is	
  
using	
  trade	
  show	
  demonstrations	
  and	
  online	
  marketing	
  to	
  reach	
  new	
  customers	
  
and	
   business	
   partners,	
   and	
   benefits	
   significantly	
   from	
   word	
   of	
   mouth	
   among	
  
satisfied	
  customers.	
  Nanoprotech	
  will	
  take	
  market	
  share	
  away	
  from	
  established	
  
but	
  less	
  effective	
  brands	
  as	
  it	
  communicates	
  the	
  strength	
  of	
  its	
  technology	
  to	
  
customers	
  internationally.	
  
	
  
	
  
	
  
	
  
4	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
The	
  Company	
  will	
  be	
  managed	
  by	
  Eduard	
  Kopshin.	
  Mr.	
  Kopshin	
  
has	
  been	
  the	
  CEO	
  of	
  the	
  NanoProtech	
  distributor	
  in	
  Eastern	
  Europe	
  for	
  10	
  years.	
  
He	
   has	
   overseen	
   human	
   resources,	
   finances,	
   operations,	
   and	
   government	
  
reporting	
  for	
  that	
  company	
  while	
  driving	
  NanoProtech	
  to	
  a	
  market	
  position	
  as	
  
the	
  most	
  premium	
  anti-­‐corrosion	
  product	
  available.	
  He	
  is	
  broadly	
  experienced	
  
in	
   both	
   management	
   generally	
   and	
   in	
   successfully	
   establishing	
   market	
   share	
  
for	
   new	
   products.	
   	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
To	
  achieve	
  the	
  Company’s	
  objectives,	
  
Nanoprotech	
  FL	
  is	
  seeking	
  $3,000,000	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
5	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
B	
  U	
  S	
  I	
  N	
  E	
  S	
  S	
   O	
  V	
  E	
  R	
  V	
  I	
  E	
  W	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Corrosion	
  is	
  a	
  major	
  issue	
  anywhere	
  steel	
  or	
  other	
  ferrous	
  metals	
  are	
  used,	
  from	
  
industrial	
   machinery	
   to	
   household	
   tools.	
   It	
   forces	
   repairs	
   and	
   replacements,	
  
causes	
  unexpected	
  downtime,	
  and	
  threatens	
  the	
  lives	
  of	
  people	
  who	
  depend	
  on	
  
modern	
  tools	
  every	
  day.	
  In	
  January	
  of	
  2015	
  alone,	
  Subaru1	
   and	
  Harley	
  Davidson2	
  
have	
  issued	
  recalls	
  due	
  to	
  corrosion	
  issues	
  that	
  may	
  prevent	
  brakes	
  from	
  working,	
  
threatening	
  the	
  safety	
  of	
  motorists	
  who	
  use	
  and	
  share	
  the	
  roads	
  with	
  over	
  a	
  half	
  
million	
  vehicles	
  on	
  the	
  road	
  today.	
  
	
  
	
  
Similarly,	
  electrical	
  insulation	
  is	
  relied	
  upon	
  to	
  ensure	
  electronics	
  work	
  as	
  expected	
  
rather	
  than	
  causing	
  entire	
  systems	
  to	
  fail	
  –	
  or	
  houses	
  to	
  burn	
  down.	
  The	
  National	
  
Fire	
   Protection	
   Agency	
   reports	
   that,	
   in	
   2011	
   alone,	
   there	
   were	
   47,700	
   home	
  
fires	
  that	
  resulted	
  in	
  418	
  deaths	
  and	
  $1.4	
  billion	
  in	
  property	
  damage,	
  all	
  caused	
  
by	
   electrical	
   failure	
   or	
   malfunction.3	
   Additionally,	
   short	
   circuits	
   in	
   even	
   minor	
  
	
  
1AutoBlog. Source: http://www.autoblog.com/2015/01/08/subaru-reapply-anti-corrosion-wax-brake-lines-regional-recall/	
  
2AutoBlog. Source: http://www.autoblog.com/2015/01/01/harley-davidson-brake-bolt-corrosion-recall/	
  
3National Fire Protection Association. Source: http://www.nfpa.org/research/reports-and-statistics/fire-causes/electrical	
  
6	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
components	
  due	
  to	
  water	
  incursion,	
  solder	
  whiskers,	
  or	
  mechanical	
  stress	
  may	
  
necessitate	
  the	
  replacement	
  of	
  expensive	
  systems	
  ranging	
  from	
  cell	
  phones	
  and	
  
automobiles	
  to	
  industrial	
  equipment.	
  Even	
  NASA	
  recommends	
  coating	
  electronics	
  
to	
  prevent	
  incidents	
  such	
  as	
  the	
  failure	
  of	
  the	
  1998	
  Galaxy	
  IV	
  satellite.4	
  
	
  
	
  
Nanoprotech	
   manufactures	
   and	
   distributes	
   the	
   best	
   anticorrosion	
   lubricants	
  
and	
   electrical	
   coating	
   insulations	
   on	
   the	
   market	
   today.	
   Using	
   nanotechnology	
  
that	
  outperforms	
  simple	
  oils	
  and	
  PTFE	
  (Teflon),	
  Nanoprotech	
  displaces	
  100%	
  of	
  
moisture	
  within	
  seconds	
  and	
  forms	
  a	
  durable	
  2-­‐3	
  micron	
  coating	
  that	
  is	
  invisible	
  
and	
  flexible.	
  Nanoprotech	
  continues	
  to	
  perform	
  even	
  when	
  the	
  protected	
  object	
  
is	
   submerged	
   in	
   salt	
   water	
   and	
   chlorinated	
   water.	
   The	
   protective	
   coating	
   is	
  
functional	
  in	
  temperatures	
  ranging	
  from	
   112° to	
  +320° F	
  (-80° to	
  +160° C),	
  and	
  
maintains	
  full	
  protection	
  against	
  corrosion	
  and	
  oxidation	
  even	
  when	
  applied	
  to	
  
wires	
  that	
  carry	
  up	
  to	
  100,000	
  volts.	
  
	
  
	
  
The	
   effectiveness	
   of	
   Nanoprotech	
   can	
   be	
   demonstrated	
   by	
  
operating	
   an	
   electric	
   drill	
   underwater.	
   Independent	
   testing	
  
confirmed	
  that	
  when	
  a	
  drill	
  is	
  submerged	
  for	
  10	
  minutes,	
  removed,	
  
disassembled,	
  has	
   Nanoprotech	
  applied,	
   reassembled,	
  then	
   let	
  
rest	
  for	
  10	
  minutes,	
  it	
  operates	
  fully	
  when	
  re-­‐submerged.	
  
	
  
	
  
The	
   Company	
   recognizes	
   that	
   many	
   other	
   companies	
   claim	
   to	
   provide	
   best-­‐in-­‐	
  
class	
   protection.	
   To	
   demonstrate	
   the	
   superiority	
   of	
   its	
   products,	
   Nanoprotech	
  
hired	
  an	
  independent	
  laboratory,	
  Qualtest,	
  Inc.,	
  to	
  compare	
  Nanoprotech	
  against	
  
its	
   competitors.	
   Water	
   dispersants	
   and	
   oxidation	
   inhibitors	
   were	
   applied	
   to	
  
steel	
  plates	
  and	
  exposed	
  to	
  salt	
  fog	
  for	
  two	
  rounds	
  each	
  lasting	
  only	
  48	
  hours.	
  
The	
   following	
   samples	
   were	
   tested:	
   untreated	
   control	
   sample,	
   Liquid	
   Wrench,	
  
DuPont,	
  L.C.Wax	
  Alumaslick,	
  Nanoprotech,	
  Ultra	
  Lube,	
  WD-­‐40,	
  and	
  Blaster.	
  After	
  
the	
  testing,	
  the	
  plates	
  were	
  photographed,	
  as	
  seen	
  in	
  the	
  following	
  image:	
  
	
  
	
  
4National Aeronautics and Space Administration. Source: http://nepp.nasa.gov/WHISKER/reference/tech_papers/2010-Panashchenko-IPC-Tin-	
  
Whisker.pdf	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
These	
  images	
  speak	
  for	
  themselves.	
  All	
  of	
  the	
  samples	
  showed	
  substantial	
  corrosion,	
  
except	
  for	
  Nanoprotech.	
  Nanoprotech	
  is	
  the	
  most	
  protective	
  product	
  on	
  the	
  market.5	
  
	
  
Nanoprotech	
  guarantees	
  the	
  effectiveness	
  of	
  its	
  products.	
  In	
  harsh	
  environments,	
  
such	
  as	
  water	
  craft,	
  the	
  Company	
  offers	
  6	
  months	
  of	
  protection.	
  In	
  areas	
  that	
  are	
  
regularly	
  exposed	
  to	
  saltwater,	
  Nanoprotech	
  will	
  last	
  for	
  1	
  year.	
  In	
  locations	
  over	
  50	
  
miles	
  away	
  from	
  an	
  ocean,	
  Nanoprotech	
  guarantees	
  its	
  products	
  for	
  up	
  to	
  3	
  years.	
  
	
  
Nanoprotech	
  is	
  available	
  in	
  application-­‐specific	
  formulations.	
  Each	
  of	
  these	
  products	
  
is	
  offered	
  in	
  a	
  spray	
  can	
  designed	
  for	
  effective,	
  even	
  application	
  of	
  Nanoprotech.	
  
One	
  can	
  protects	
  22	
  square	
  feet	
  of	
  material.	
  Specific	
  formulas	
  include:	
  
	
  
» Automobile	
  Electric	
  
» Motorcycle	
  Anticor	
  
» Motorcycle	
  Electric	
  	
  
	
   	
  
» Marine	
  Anticor	
  
» Home	
  &	
  Garden	
  Electric	
  
» Gun	
  Anticor	
  	
  
	
   	
  
» Marine	
  Electric	
  
» Bicycle	
  Anticor	
  
» Home	
  &	
  Garden	
  Anticor	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
5The full report from Qualtest, Inc., is available at: http://www.nanoprotech.org/var/site/storage/images/certificates/salt-fog-test-report/2418-1-	
  
eng-US/SALT-FOG-TEST-REPORT.jpg	
  
7	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
Nanoprotech	
   also	
   offers	
   convenient	
   packages	
   of	
   electric	
   and	
   anticor	
   products	
   for	
  
marine,	
  motorcycle,	
  and	
  home	
  &	
  garden	
  applications,	
  in	
  addition	
  to	
  one	
  gallon	
  bulk	
  
packaging	
  of	
  electric	
  and	
  anticor	
  products.	
  
	
  
	
  
Nanoprotech	
  is	
  also	
  in	
  the	
  final	
  stages	
  of	
  testing	
  and	
  preparing	
  for	
  release	
  (in	
  April,	
  
2015)	
  its	
  latest	
  product	
  that	
  is	
  designed	
  for	
  use	
  on	
  glass	
  and	
  mirrors,	
  where	
  its	
  existing	
  
products	
  may	
  have	
  minor	
  but	
  discernible	
  effects.	
  Crystal	
  Clear	
  creates	
  an	
  optically	
  clear	
  
coating	
  that	
  repels	
  rain,	
  mud,	
  snow,	
  and	
  abrasion.	
  In	
  automotive	
  applications,	
  Crystal	
  
Clear	
  makes	
  it	
  unnecessary	
  to	
  use	
  windshield	
  wipers	
  above	
  approximately	
  40	
  miles	
  
per	
  hour,	
  reducing	
  the	
  effort	
  and	
  expense	
  of	
  replacing	
  these	
  parts	
  and	
  enhancing	
  the	
  
effectiveness	
  of	
  headlights	
  and	
  safety	
  lights	
  in	
  inclement	
  weather.	
  Used	
  on	
  building	
  
windows,	
  Crystal	
  Clear	
  makes	
  it	
  possible	
  to	
  wash	
  glass	
  perfectly	
  clean	
  by	
  simply	
  rinsing	
  
it	
  with	
  water.	
   Glass	
  doors	
  will	
  no	
  longer	
  need	
  to	
  be	
  cleaned	
  frequently	
  to	
  minimize	
  
handprints,	
  and	
  exterior	
  windows	
  that	
  are	
  treated	
  with	
  Crystal	
  Clear	
  will	
  be	
  far	
  less	
  
expensive	
  to	
  maintain	
  in	
  a	
  pristine	
  state,	
  which	
  is	
  especially	
  valuable	
  to	
  managers	
  of	
  
high-­‐rise	
   buildings.	
   Crystal	
   Clear	
   will	
   also	
   provide	
   long-­‐term	
   protection,	
   surpassing	
  
similar	
  products	
  that	
  need	
  to	
  be	
  regularly	
  reapplied	
  to	
  achieve	
  protection	
  that	
  is	
  not	
  
nearly	
  as	
  effective	
  as	
  Crystal	
  Clear.	
  
	
  
	
  
Nanoprotech	
   is	
   currently	
   offered	
   at	
   retail	
   prices	
   of	
   $17.80	
   to	
   $23.40,	
   depending	
  
on	
   application,	
   with	
   gallon	
   jugs	
   of	
   electric	
   Nanoprotech	
   priced	
   at	
   $273	
   and	
   anticor	
  
Nanoprotech	
  priced	
  at	
  $262.	
  While	
  these	
  rates	
  are	
  high	
  on	
  a	
  per-­‐application	
  basis,	
  the	
  
long	
  life	
  and	
  effectiveness	
  of	
  Nanoprotech	
  provides	
  much	
  higher	
  value	
  for	
  the	
  dollar	
  
than	
  any	
  other	
  product	
  on	
  the	
  market.	
  
	
  
	
  
The	
   success	
   of	
   Nanoprotech	
   in	
   Europe,	
   Asia,	
   and	
   Africa	
   has	
   proven	
  that	
   customers	
  
ranging	
   from	
   households	
   to	
   industrial	
   manufacturers	
  find	
   tremendous	
   value	
   in	
   the	
  
Company’s	
  products.	
   Now,	
  Nanoprotech	
  is	
   looking	
   to	
  expand	
   into	
  North	
  and	
   South	
  
America,	
  starting	
  with	
  one	
  of	
  the	
  best	
  markets	
  in	
  the	
  world:	
  the	
  United	
  States.	
  
	
  
	
  
8	
  
 
	
  
	
  
	
  
M	
  A	
  R	
  K	
  E	
  T	
   A	
  N	
  A	
  LY	
  S	
  I	
  S	
   S	
  U	
  M	
  M	
  A	
  R	
  Y	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
The	
  Nanoprotech	
  formula	
  was	
  developed	
  in	
  2007	
  and	
  was	
  refined	
  into	
  a	
  consumer	
  
product	
  line	
  in	
  2010.	
  The	
  products	
  were	
  being	
  sold	
  in	
  8	
  countries	
  in	
  2012,	
  21	
  countries	
  
in	
  2013,	
  and	
  43	
  countries	
  in	
  2014.	
  The	
  following	
  map	
  shows	
  Nanoprotech’s	
  global	
  
reach.	
  To	
  date,	
  over	
  $100	
  million	
  of	
  Nanoprotech	
  products	
  have	
  been	
  sold.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
With	
  expansion	
  into	
  the	
  United	
  States,	
  Nanoprotech	
  seeks	
  to	
  reach	
  an	
  estimated	
  
316	
   million	
   consumers	
   and	
   24	
   million	
   businesses.6	
   Some	
   of	
   these	
   potential	
  
customers	
  will	
  only	
  need	
  to	
  buy	
  one	
  can	
  of	
  Nanoprotech	
  to	
  protect	
  their	
  household	
  
items	
   for	
   years	
   to	
   come;	
   others	
   may	
   use	
   gallons	
   of	
   Nanoprotech	
   on	
   a	
   regular	
  
basis.	
  Every	
  individual	
  and	
  business,	
  however,	
  can	
  find	
  benefits	
  in	
  Nanoprotech.	
  
	
  
6Business Analyst Online. Source: http://bao.esri.com/	
  
	
  
	
  
9	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
In	
   the	
   automotive	
   sector	
   alone,	
   market	
   analyst	
   ESRI	
   estimates	
   that	
   Americans	
  
spent	
   $7.4	
   billion	
   on	
   aftermarket	
   parts,	
   equipment,	
   and	
   accessories,	
   plus	
   an	
  
additional	
  $1.5	
  billion	
  on	
  cleaning	
  products	
  and	
  services.7	
   Americans	
  also	
  spent	
  
$4.5	
  billion	
  on	
  vehicle	
  electrical	
  system	
  repairs,	
  many	
  of	
  which	
  could	
  have	
  been	
  
avoided	
  altogether	
  if	
  the	
  vehicle’s	
  systems	
  were	
  protected	
  with	
  Nanoprotech.	
  
	
  
	
  
Perhaps	
  the	
  best	
  indicator	
  for	
  the	
  market	
  potential	
  of	
  Nanoprotech’s	
  products	
  
is	
  in	
  the	
  WD-­‐40	
  Company.	
  Invented	
  in	
  1953	
  and	
  available	
  at	
  retail	
  in	
  1958,	
  WD-­‐	
  
40	
  is	
  a	
  household	
  name	
  for	
  the	
  product	
  that	
  offers	
  similar	
  features	
  to,	
  but	
  is	
  far	
  
less	
  effective	
  than,	
  Nanoprotech.	
  As	
  a	
  public	
  corporation,	
  however,	
  there	
  is	
  a	
  
wealth	
  of	
  information	
  available	
  about	
  WD-­‐40’s	
  performance	
  in	
  the	
  market.	
  In	
  
FY	
  2014,	
  WD-­‐40	
  generated	
  $181	
  million	
  in	
  revenue	
  from	
  sales	
  in	
  the	
  Americas.	
  
WD-­‐40’s	
  growth	
  is	
  largely	
  due,	
  according	
  to	
  its	
  latest	
  annual	
  filing,	
  “to	
  a	
  higher	
  
level	
  of	
  promotional	
  activities	
  and	
  increased	
  distribution.”	
  Although	
  the	
  WD-­‐40	
  
Company	
  sells	
  products	
  other	
  than	
  its	
  namesake,	
  sales	
  “of	
  homecare	
  and	
  cleaning	
  
products	
  in	
  the	
  Americas	
  segment	
  decreased	
  $2.3	
  million,	
  or	
  7%,”	
  showing	
  that	
  
their	
  “multi-­‐purpose	
  maintenance	
  products”	
  are	
  in	
  the	
  highest	
  demand	
  –	
  and	
  
increased	
  by	
  11%,	
  year-­‐over-­‐year.8	
   The	
  market	
  for	
  Nanoprotech’s	
  products	
  is	
  at	
  
least	
  as	
  large	
  as	
  that	
  for	
  WD-­‐40,	
  as	
  many	
  individuals	
  and	
  businesses	
  that	
  do	
  not	
  
find	
   WD-­‐40	
   to	
   be	
   effective	
   for	
   their	
   needs	
   would	
   enjoy	
   the	
   effectiveness	
   and	
  
durability	
  of	
  Nanoprotech.	
  
	
  
	
  
As	
   of	
   March,	
   2015,	
   Nanoprotech	
   FL	
   has	
   signed	
   distributorship	
   agreements	
  
worth	
   an	
   estimated	
   $970,000	
   per	
   year.	
   These	
   include	
   exclusive	
   agreements	
  
for	
  Colombia	
  (worth	
  $450,000	
  per	
  year)	
  and	
  Chile	
  (worth	
  $180,000	
  per	
  year),	
  
and	
  non-­‐exclusive	
  agreements	
  for	
  the	
  states	
  of	
  Florida	
  ($110,000	
  per	
  year)	
  and	
  
California	
  ($230,000	
  per	
  year).	
  The	
  Company	
  anticipates	
  seeing	
  nearly	
  $1	
  million	
  
in	
  revenue	
  from	
  these	
  territories	
  alone	
  and	
  has	
  many	
  more	
  major	
  markets	
  to	
  
expand	
  to	
  in	
  the	
  western	
  hemisphere.	
  
	
  
7Ibid.	
  
8WD-40 Company. 2014 Annual Report. Source: http://investor.wd40company.com/files/doc_financials/annual/2014-Annual-Report.pdf	
  
	
  
10	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
Market	
  Segmentation	
  
Nanoprotech’s	
  U.S.	
  sales	
  to	
  date	
  have	
  been	
  predominantly	
  for	
  marine	
  applications,	
  
representing	
  over	
  half	
  of	
  both	
  electric	
  and	
  anticor	
  sales.	
  The	
  following	
  table	
  shows	
  
this	
  segmentation,	
  with	
  slices	
  in	
  green	
  representing	
  electric	
  products	
  and	
  slices	
  in	
  
blue	
  showing	
  anticor	
  products.	
  
	
  
	
  
	
  
Oct.	
  2014	
  -­‐	
  Jan.	
  2015	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
The	
   Company	
   understands	
   that	
   this	
   segmentation	
   reflects	
   its	
   existing	
   marketing	
  
efforts	
   more	
   than	
   its	
   actual	
   potential.	
   Nanoprotech	
   projects	
   that	
   its	
   largest	
  
segments	
  will	
  be	
  in	
  the	
  automobile	
  and	
  marine	
  markets,	
  with	
  home	
  &	
  garden,	
  gun,	
  
and	
  bicycle	
  products	
  each	
  maintaining	
  substantial	
  but	
  smaller	
  volumes	
  of	
  sales.	
  
	
  
	
  
Nanoprotech	
   also	
   anticipates	
   finding	
   a	
   significant	
   market	
   for	
   its	
   products	
   in	
   the	
  
aerospace	
  industry.	
  This	
  segment	
  maintains	
  very	
  high	
  standards	
  for	
  the	
  products	
  
it	
   uses	
   due	
   to	
   the	
   consequences	
   of	
   equipment	
   failure.	
   Therefore,	
   Nanoprotech	
  
expects	
  that,	
  as	
  the	
  quality	
  of	
  its	
  products	
  are	
  proven,	
  aerospace	
  customers	
  will	
  
purchase	
  the	
  Company’s	
  electric	
  and	
  anticor	
  offerings	
  in	
  bulk	
  quantities.	
  
	
  
	
  
1	
  1	
  
U.S.	
  Sales	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
Industry	
  Analysis	
  
Nanoprotech	
  will	
  compete	
  in	
  the	
  $18.0	
  billion	
  Lubricant	
  Oil	
  Manufacturing	
  industry	
  
(NAICS	
  32419).	
  This	
  industry	
  sells	
  automotive	
  and	
  industrial	
  lubricants	
  at	
  wholesale,	
  
to	
   retailers,	
   and	
   directly.	
   It	
   has	
   experienced	
   4.1%	
   annual	
   growth	
   since	
   2009	
   and	
  
is	
   projected	
   to	
   continue	
   growing	
   at	
   an	
   average	
   rate	
   of	
   4.0%	
   per	
   year	
   through	
  
2019,	
   a	
   rate	
   that	
   is	
   consistently	
   stronger	
   than	
   the	
   overall	
   economy.	
   Demand	
   for	
  
industry	
  products	
  is	
  driven	
  by	
  consumer	
  and	
  commercial	
  investment,	
  such	
  as	
  for	
  
new	
  cars	
  and	
  machinery	
  and	
  maintenance	
  of	
  the	
  same.	
   Customer	
  preferences	
  are	
  
shifting	
  toward	
  higher	
  end	
  products,	
  such	
  as	
  synthetic	
  oils,	
  which	
  provide	
  industry	
  
participants	
   with	
   high	
   margins.	
   Profit	
   is	
   expected	
   to	
   grow	
   to	
   6.3%	
   of	
   revenue	
   in	
  
2019.	
  The	
  following	
  graphics	
  illustrate	
  the	
  performance	
  of	
  this	
  industry,	
  courtesy	
  
of	
  IBISWorld.9	
  
	
  
	
  
Key	
  Statistics	
  
Snapshot	
  	
  
	
   	
  
$18.0bn	
  
$1.1bn	
  
	
  
	
   	
  
Annual	
  Growth	
  09-­‐14	
  
	
  
	
  
	
  
	
  
$922.7m	
  
	
  
	
   	
  
Annual	
  Growth	
  14-­‐19	
  
	
  
	
  
	
  
	
  
347	
  
	
  
Revenue	
  vs.	
  employment	
  growth	
  
	
  
24	
  
	
  
16	
  	
  
	
   	
  
World	
  price	
  of	
  crude	
  oil	
  
	
  
120	
  
	
  
	
  
100	
  
	
  
%change	
  
	
  
	
   	
  
8	
  
	
  
0	
  
	
  
−8	
  
	
  
−16	
  	
  
	
   	
  
$perbarrel	
  
	
  
	
   	
  
	
  
	
  
80	
  
	
  
	
  
60	
  
	
  
	
  
40	
  
Year	
   06	
   08	
   10	
   12	
   14	
   16	
   18	
   20	
   Year	
   06	
   08	
   10	
   12	
   14	
   16	
   18	
   20	
  
Revenue	
   Employment	
  
SOURCE:	
  WWW.IBISWORLD.COM	
  
	
  
	
  
9IBISWorld. Source: http://www.ibisworld.com	
  
	
  
12	
  
Revenue	
  
4.1%	
   4.0%	
  
Profit	
   Wages	
   Businesses	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
This	
  industry	
  is	
  moderately	
  concentrated,	
  with	
  the	
  top	
  three	
  participants	
  (ExxonMobil,	
  
Royal	
  Dutch/Shell,	
  and	
  Ashland)	
  accounting	
  for	
  44.5%	
  of	
  revenue	
  in	
  2014.	
  Large	
  but	
  
minority	
  industry	
  participants	
  focus	
  on	
  specific	
  market	
  niches.	
  For	
  example,	
  Quaker	
  
Chemical	
   (which	
   is	
   unrelated	
   to	
   Quaker	
   State)	
   focuses	
   on	
   metalworking	
   process	
  
chemicals,	
   while	
   WD-­‐40	
   offers	
   a	
   general	
   purpose	
   water-­‐dispersing	
   product	
   that	
   is	
  
widely	
  marketed	
  and	
  sold	
  largely	
  on	
  the	
  basis	
  of	
  brand	
  recognition.	
  
	
  
	
  
The	
  key	
  success	
  factors	
  identified	
  by	
  IBISWorld	
  include	
  being	
  able	
  to	
  adapt	
  products	
  
to	
  rapidly	
  meet	
  market	
  conditions,	
  to	
  ensure	
  the	
  reliable	
  and	
  affordable	
  supply	
  of	
  key	
  
inputs,	
  and	
  working	
  closely	
  with	
  customers	
  to	
  ensure	
  that	
  products	
  are	
  positioned	
  
correctly	
  and	
  even	
  to	
  develop	
  proprietary	
  solutions	
  for	
  specific	
  technical	
  problems.	
  
	
  
	
  
	
  
Competitive	
  Comparison	
  
There	
   are	
   several	
   other	
   manufacturers	
   of	
   anticorrosion	
   and	
   electric	
   insulation	
  
products.	
   The	
   advantages	
   that	
   these	
   products	
   offer	
   are	
   brand-­‐name	
   recognition	
  
and	
  low	
  per-­‐application	
  cost.	
  However,	
  none	
  of	
  these	
  competitors	
  offer	
  products	
  
that	
  approach	
  the	
  quality	
  or	
  durability	
  of	
  Nanoprotech.	
  
	
  
	
  
For	
   its	
   anticor	
   products,	
   Nanoprotech	
   has	
   an	
   independent	
   laboratory	
   conduct	
   a	
  
comparison	
   test	
   in	
   a	
   salt	
   fog	
   environment.	
   This	
   test	
   is	
   described	
   in	
   the	
   previous	
  
Business	
  Overview	
  section.	
  After	
  48	
  hours	
  of	
  exposure,	
  only	
  the	
  L.C.Wax	
  Alumaslick	
  
product	
   provided	
   similar	
   anticor	
   properties;	
   all	
   other	
   products	
   failed	
   to	
   prevent	
  
substantial	
   and	
   widespread	
   corrosion.	
   However,	
   after	
   96	
   hours	
   of	
   exposure,	
   the	
  
Alumaslick	
  treated	
  steel	
  appeared	
  to	
  be	
  just	
  as	
  heavily	
  damaged	
  as	
  the	
  next-­‐best	
  
products,	
   Steel	
   Liquid	
   Wrench	
   and	
   WD-­‐40.	
   In	
   order	
   to	
   maintain	
   similar	
   levels	
   of	
  
protection,	
   Alumaslick	
   would	
   need	
   to	
   be	
   applied	
   several	
   times	
   per	
   week	
   while	
  
Nanoprotech	
  only	
  requires	
  one	
  or	
  two	
  applications	
  per	
  year.	
  This	
  test,	
  conducted	
  
by	
  Qualtest,	
  Inc.,	
  shows	
  that	
  second	
  best	
  isn’t	
  good	
  enough	
  at	
  all.	
  
	
  
	
  
	
  
	
  
1	
  3	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
Best	
  result:	
  Nanoprotech	
   Second	
  best:	
  Alumaslick	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
For	
  its	
  electric	
  products,	
  Nanoprotech	
  not	
  only	
  protects	
  against	
  damage	
  but	
  cleans	
  
and	
   removes	
   existing	
   damage.	
   In	
   a	
   test	
   with	
   printed	
   circuit	
   boards,	
   submerging	
  
unprotected	
  boards	
  into	
  water	
  caused	
  80%	
  of	
  them	
  to	
  fail.	
  Of	
  those	
  failed	
  boards,	
  
60%	
  returned	
  to	
  full	
  functionality	
  after	
  application	
  of	
  Nanoprotech.	
  When	
  exposed	
  
to	
  salt	
  fog,	
  all	
  untreated	
  circuit	
  boards	
  failed	
  while	
  all	
  Nanoprotech	
  treated	
  boards	
  
maintained	
  all	
  working	
  capacities.	
  
	
  
	
  
With	
  Nanoprotech:	
   Untreated:	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Competing	
   products,	
   including	
   3M/Scotch,	
   DeoxIT,	
   Arathane	
   5750,	
   and	
   generic	
  
conformal	
  coating	
  cannot	
  offer	
  these	
  advantages.	
  
	
  
	
  
Simply	
   stated,	
   there	
   is	
   no	
   competitor	
   for	
   the	
   capabilities	
   of	
   Nanoprotech.	
  
The	
   strength	
   of	
   the	
   Company’s	
   competitors	
   lays	
   solely	
   in	
   their	
   marketing	
   and	
  
distribution	
  capabilities,	
  which	
  Nanoprotech	
  intends	
  to	
  correct	
  as	
  it	
  expands	
  in	
  
the	
  American	
  markets.	
  
	
  
	
  
	
  
	
  
1	
  4	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Competitive	
  Advantages	
  
	
  
Nanoprotech	
   maintains	
   many	
   advantages	
   over	
   its	
   competition.	
   As	
   a	
  
business,	
  it	
  has:	
  
	
  
	
  
» Established	
  manufacturing	
  process	
  and	
  supply	
  chain	
  
» Proven	
  success	
  of	
  its	
  products	
  in	
  overseas	
  markets	
  
» Virtually	
  unlimited	
  potential	
  in	
  diverse	
  variety	
  of	
  market	
  verticals	
  
	
  
	
  
As	
  a	
  product,	
  Nanoprotech	
  has	
  advantages	
  that	
  allow	
  it	
  to:	
  
	
  
	
  
» Build	
  waterproof	
  and	
  water-­‐repellant	
  coating	
  
» Can	
  be	
  applied	
  to	
  wet	
  surfaces,	
  removing	
  water	
  within	
  seconds	
  
» Penetrate	
  layers	
  of	
  rust	
  
» Facilitate	
  cleaning	
  
» Stop	
  any	
  existing	
  corrosion	
  
» Maintain	
  elasticity	
  and	
  provides	
  lubrication	
  
» Avoid	
  harmful	
  effects	
  on	
  metal,	
  plastic,	
  rubber,	
  paint,	
  or	
  ceramics	
  
» Contain	
  no	
  rubber,	
  silicone,	
  acrylics,	
  or	
  tetrafluoroethylene	
  
» Operate	
  in	
  a	
  wide	
  range	
  of	
  temperatures	
  and	
  environments	
  
» Reliably	
  maintain	
  performance	
  for	
  a	
  year	
  or	
  more	
  in	
  most	
  conditions	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
15	
  
 
	
  
	
  
	
  
S	
  T	
  R	
  AT	
  E	
  G	
  Y	
   A	
  N	
  D	
  
I	
  M	
  P	
  L	
  E	
  M	
  E	
  N	
  TAT	
  I	
  O	
  N	
   S	
  U	
  M	
  M	
  A	
  R	
  Y	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Nanoprotech	
  will	
  develop	
  a	
  brand	
  that	
  communicates	
  its	
  core	
  values	
  of	
  effective,	
  
durable,	
   and	
   reliable	
   protection	
   of	
   mechanical	
   and	
   electric	
   goods.	
   A	
   cohesive	
  
brand	
  identity,	
  including	
  a	
  memorable	
  logo	
  and	
  all	
  necessary	
  marketing	
  collateral,	
  
will	
   transmit	
   a	
   clear	
   message	
   of	
   these	
   values	
   to	
   the	
   Company’s	
   distributors	
  
and	
   end	
   customers,	
   and	
   will	
   guide	
   the	
   development	
   of	
   marketing	
   campaigns.	
  
Nanoprotech	
   plans	
   to	
   utilize	
   both	
   business-­‐to-­‐business	
   and	
   consumer	
   focused	
  
marketing	
  approaches,	
  leveraging	
  a	
  strong	
  online	
  presence,	
  an	
  ever-­‐growing	
  base	
  
of	
   distributors,	
   and	
   representation	
   at	
   expos	
   and	
   trade	
   shows.	
   This	
   strategy	
   is	
  
specifically	
  designed	
  to	
  reach	
  the	
  broad	
  base	
  of	
  customers	
  who	
  will	
  enjoy	
  the	
  many	
  
benefits	
  of	
  Nanoprotech.	
  
	
  
	
  
	
  
Objectives	
  
The	
  Company	
  has	
  identified	
  the	
  following	
  objectives	
  and	
  benchmarks	
  as	
  it	
  begins	
  
operations	
  in	
  the	
  United	
  States:	
  
	
  
	
  
SHORT-­‐TERM	
  
» Establish	
  itself	
  as	
  a	
  trusted,	
  widely	
  known	
  and	
  appreciated	
  brand	
  
» Build	
  a	
  base	
  of	
  distributors	
  that	
  is	
  large	
  enough	
  to	
  sustain	
  business	
  
» Create	
   a	
   manufacturing	
   facility	
   that	
   will	
   meet	
   the	
   production	
   of	
   all	
  
American	
  customers	
  
	
  
	
  
LONG-­‐TERM	
  
» Enhance	
  its	
  client	
  base	
  to	
  sustain	
  the	
  business	
  and	
  support	
  its	
  growth	
  objectives	
  
» Maximize	
   market	
   penetration	
   with	
   a	
   mix	
   of	
   licensed	
   representation	
   and	
  
direct	
  sales	
  
	
  
	
  
	
  
	
  
16	
  
 
	
  
	
  
	
  
	
  
Marketing	
  Strategy	
  
Nanoprotech	
   will	
   use	
   a	
   direct	
   sales	
   approach	
   and	
   a	
   variety	
   of	
   advertising	
   channels	
   to	
  
increase	
  its	
  exposure	
  among	
  prospective	
  customers.	
  Specific	
  channels	
  will	
  include:	
  
	
  
	
  
Print	
  media:	
  Nanoprotech	
  will	
  place	
  ads	
  in	
  a	
  variety	
  of	
  print	
  publications	
  that	
  are	
  tailored	
  
to	
  each	
  market	
  segment.	
  These	
  advertisements	
  will	
  communicate	
  key	
  value	
  propositions	
  
of	
   Nanoprotech,	
   both	
   in	
   using	
   the	
   product	
   and	
   investing	
   in	
   becoming	
   a	
   licensed	
  
representative,	
  and	
  will	
  also	
  include	
  any	
  limited-­‐time	
  discounts	
  or	
  other	
  incentives.	
  
	
  
	
  
Word	
  of	
  mouth:	
  The	
  advent	
  of	
  social	
  media	
  means	
  that	
  word	
  travels	
  faster	
  than	
  ever	
  
before	
   between	
   family	
   members,	
   peers,	
   and	
   colleagues	
   who	
   are	
   pleased	
   with	
   their	
  
experiences	
  with	
  a	
  particular	
  business.	
  The	
  Company	
  will	
  actively	
  cultivate	
  this	
  effective	
  and	
  
inexpensive	
  resource	
  to	
  generate	
  interest	
  in	
  its	
  products.	
  According	
  to	
  research	
  conducted	
  
by	
  Nielsen,	
  word	
  of	
  mouth	
  remains	
  among	
  the	
  most	
  trusted	
  forms	
  of	
  advertising:	
  84%	
  of	
  
consumers	
  around	
  the	
  world	
  say	
  they	
  trust	
  earned	
  advertising,	
  such	
  as	
  word	
  of	
  mouth	
  or	
  
recommendations	
  from	
  friends	
  and	
  family,	
  above	
  all	
  other	
  forms	
  of	
  advertising.	
  
	
  
	
  
Website:	
   The	
   Company	
   will	
   continuously	
   enhance	
   and	
   optimize	
   its	
   website	
   (www.	
  
nanoprotech.org)	
  to	
  generate	
  interest	
  in	
  its	
  products.	
  This	
  website	
  will	
  be	
  search	
  engine	
  
optimized	
   and	
   mobile	
   compatible,	
   and	
   will	
   include	
   a	
   shopping	
   cart,	
   product/service	
  
information,	
   regularly	
   updated	
   blog,	
   client	
   testimony,	
  photo	
   gallery,	
  company	
   profile,	
  
location,	
  and	
  contact	
  information.	
  
	
  
	
  
Internet	
  advertising:	
  Nanoprotech	
  will	
  use	
  a	
  combination	
  of	
  internet	
  advertising	
  methods	
  
including	
  Pay-­‐per-­‐Click,	
  Google	
  AdWords,	
  Tags,	
  and	
  banner	
  ads	
  as	
  well	
  as	
  search	
  engine	
  
optimization	
  of	
  its	
  website.	
  This	
  effort	
  will	
  help	
  generate	
  interest	
  in	
  the	
  Company	
  from	
  the	
  
online	
  community	
  and	
  general	
  public.	
  Nanoprotech	
  may	
  also	
  initiate	
  contact	
  with	
  specific	
  
online	
  communities	
  –	
  such	
  as	
  websites	
  that	
  cater	
  to	
  automotive,	
  marine,	
  firearm,	
  and	
  
bicycling	
  enthusiasts	
  –	
  to	
  extend	
  special	
  offers	
  and	
  product	
  demonstrations.	
  
	
  
	
  
Viral	
  marketing:	
  The	
  Company	
  will	
  rely	
  on	
  online	
  viral	
  marketing	
  to	
  rapidly	
  reach	
  a	
  broad	
  
audience.	
  Viral	
  marketing	
  efforts	
  hinge	
  on	
  the	
  creation	
  of	
  engaging	
  content	
  designed	
  to	
  be	
  
shared	
  by	
  viewers.	
  To	
  encourage	
  social	
  sharing,	
  Nanoprotech	
  will	
  pursue	
  cross-­‐marketing	
  
with	
  other	
  websites,	
  create	
  YouTube	
  videos,	
  establish	
  a	
  presence	
  on	
  social	
  networking	
  
sites,	
  blog	
  regularly,	
  and	
  engage	
  frequently	
  on	
  Twitter.	
  
	
  
	
  
17	
  
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Direct	
  sales:	
  In	
  the	
  business-­‐to-­‐business	
  world,	
  direct	
  advertising	
  has	
  always	
  been	
  the	
  
most	
  effective	
  means	
  of	
  reaching	
  new	
  customers.	
  For	
  this	
  reason,	
  Nanoprotech	
  will	
  use	
  
direct	
  sales	
  calls,	
  presentations,	
  and	
  appointments	
  with	
  major	
  distributors	
  and	
  retailers	
  of	
  
allied	
  products	
  throughout	
  the	
  United	
  States.	
  The	
  Company	
  will	
  also	
  arrange	
  conference	
  
calls	
  and	
  webinar	
  presentations	
  with	
  faraway	
  prospects	
  when	
  geography	
  is	
  a	
  limiting	
  factor.	
  
The	
  benefits	
  of	
  a	
  direct	
  sales	
  approach	
  include	
  lower	
  upfront	
  marketing	
  costs,	
  enhanced	
  
lead	
  generation,	
  and	
  immediate	
  results.	
  
	
  
	
  
Networking:	
   As	
   with	
   any	
   relationship-­‐based	
   business,	
   the	
   Company	
   will	
   benefit	
   from	
  
participating	
  in	
  a	
  number	
  of	
  networking	
  opportunities	
  that	
  have	
  the	
  potential	
  to	
  yield	
  
new	
  business	
  contacts	
  as	
  well	
  as	
  nourish	
  existing	
  ones.	
  Nanoprotech	
  will	
  attend	
  a	
  variety	
  
of	
   events	
   that	
   draw	
   substantial	
   numbers	
   of	
   prospective	
   clients,	
   including	
   seminars,	
  
networking	
  events,	
  and	
  conferences	
  which	
  provide	
  opportunities	
  to	
  speak	
  to	
  and	
  associate	
  
with	
  larger	
  audiences.	
  
	
  
	
  
In-­‐store	
   advertising:	
   It	
   is	
   essential	
   that	
   the	
   Company	
   create	
   business-­‐to-­‐consumer	
  
marketing	
   pieces	
   to	
   be	
   displayed	
   within	
   the	
   retail	
   environment.	
   Nanoprotech	
   has	
  
developed	
  a	
  sales	
  kiosk	
  that	
  includes	
  a	
  video	
  display	
  stand,	
  flyers,	
  catalogs,	
  and	
  display	
  
hooks.	
  This	
  kiosk	
  is	
  given	
  to	
  each	
  licensed	
  representative	
  as	
  an	
  initial	
  package	
  to	
  help	
  
them	
  introduce	
  Nanoprotech	
  products	
  to	
  their	
  local	
  market	
  by	
  articulating	
  the	
  quality	
  and	
  
identity	
  of	
  the	
  brand.	
  
	
  
	
  
Promotional	
   samples:	
   The	
   Company	
   offers	
  free	
   samples	
   of	
   its	
   product(s)	
   to	
   potential	
  
commercial	
  customers	
  for	
  their	
  in-­‐house	
  evaluation	
  of	
  Nanoprotech.	
  This	
  allows	
  customers	
  
who	
  may	
  buy	
  bulk	
  quantities	
  of	
  the	
  product	
  to	
  see	
  firsthand	
  how	
  Nanoprotech	
  is	
  the	
  best	
  
product	
  on	
  the	
  market	
  today.	
  
	
  
	
  
Content	
   marketing:	
  The	
   Company	
   will	
   emphasize	
   its	
   industry	
   expertise	
   and	
   provide	
   a	
  
valued	
  service	
  to	
  clients	
  and	
  interested	
  parties	
  by	
  creating	
  high-­‐quality,	
  sharable	
  content.	
  
Nanoprotech	
  will	
  continue	
  to	
  conduct	
  original	
  research	
  and	
  release	
  reports	
  and	
  white	
  
papers	
  on	
  its	
  findings,	
  serve	
  as	
  a	
  contact	
  for	
  journalists	
  and	
  media,	
  publish	
  articles	
  on	
  
LinkedIn,	
  or	
  contribute	
  to	
  trade	
  journals	
  and	
  popular	
  publications.	
  This	
  strategy	
  will	
  build	
  
cachet	
  for	
  Nanoprotech	
  within	
  the	
  industry	
  while	
  organically	
  improving	
  the	
  Company’s	
  
search	
  engine	
  results.	
  
	
  
	
  
18
 
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

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Presentation Nanoprotech

  • 1.                                                                       PRESENTATION  
  • 2.                                   E  X  E  C  U  T  I  V  E   S  U  M  M  A  R  Y                                           Corrosion   causes   significant   expenses   across   the   market   as   products   fail   unexpectedly  or  need  to  be  replaced  in  an  accelerated  timeframe.  Corrosion  can   even  cause  vital  components  to  fail  that  lead  to  severe  injury  or  death.  Despite   the   critical   importance   of   protecting   mechanical   and   electrical   parts   from   corrosion,   the   anti-­‐corrosion   and   electric   protection   products   that   dominate   the  market  are  based  on  last-­‐century  technology.  Nanoprotech  FL,  LLC  (d.b.a.   Nanoprotech   and   also   referred   to   as   “the   Company”)   is   a   start-­‐up   distributor   of  the  proven  line  of  Nanoprotech  products  that  are  based  in  nanotechnology.   Nanoprotech   drives   away   100%   of   water   and   humidity   within   seconds   of   application,  forms  a  flexible  layer  that  prevents  future  contamination  yet  is  only   two  to  three  microns  thick,  lubricates  mechanical  action,  and  is  durable  enough   that   typical   applications   will   last   for   at   least   one   year.  Nanoprotech   has   been   demonstrated  to  allow  electric  drills  to  operate  fully  while  underwater  and  to           3  
  • 3.                 outperform  all  other  anticor  products  after  mere  hours  of  exposure  to  salt  spray.   Nanoprotech  products  have  proven  to  be  successful  in  Europe,  Asia,  and  Africa,   and  Nanoprotech  FL  is  bringing  modern  corrosion  protection  to  the  Americas.       The   market   for   Nanoprotech   is   tremendous.   Since   its   release   to   consumers   in  2010,  over  $100  million  of  Nanoprotech  has  been  sold,  and  the  Company’s   global   marketing   and   distribution   efforts   are   only   beginning   to   ramp   up.   The   Company   already   has   distribution   agreements   worth   an   estimated   $970,000   per   year.   The   Company   estimates   that   it   can   readily   surpass   the   $181   million   in   annual   revenue   generated   in   the   Americas   by   the   competing   product   WD-­‐   40,  a  water  dispersant  and  lubricant  which  is  not  sufficient  to  meet  the  needs   of   knowledgeable   marine,   automotive,   or   aerospace   customers   –   needs   that   Nanoprotech  can  and  will  meet.  Rigorous,  independent  testing  has  proven  that   Nanoprotech  is  superior  to  all  competitors  in  terms  of  ease  of  application,  low   health  risks,  effectiveness  of  protection,  and  durability  of  the  nanotech  coating.   The  Company  only  needs  to  inform  its  potential  consumers  to  acquire  much  of   their  business.       In   order   to   build   a   broadly   efficient   and   profitable   business,   Nanoprotech   is   developing   its   customer   base   through   a   combination   of   direct   sales   and   a   growing   base   of   distributors   and   licensed   representatives.   Nanoprotech   also   intends   to   construct   a   manufacturing   facility   in   the   U.S.   that   will   serve   customers   throughout   North,   Central,   and   South   America.   The   Company   is   using  trade  show  demonstrations  and  online  marketing  to  reach  new  customers   and   business   partners,   and   benefits   significantly   from   word   of   mouth   among   satisfied  customers.  Nanoprotech  will  take  market  share  away  from  established   but  less  effective  brands  as  it  communicates  the  strength  of  its  technology  to   customers  internationally.           4  
  • 4.                 The  Company  will  be  managed  by  Eduard  Kopshin.  Mr.  Kopshin   has  been  the  CEO  of  the  NanoProtech  distributor  in  Eastern  Europe  for  10  years.   He   has   overseen   human   resources,   finances,   operations,   and   government   reporting  for  that  company  while  driving  NanoProtech  to  a  market  position  as   the  most  premium  anti-­‐corrosion  product  available.  He  is  broadly  experienced   in   both   management   generally   and   in   successfully   establishing   market   share   for   new   products.                       To  achieve  the  Company’s  objectives,   Nanoprotech  FL  is  seeking  $3,000,000                                                             5  
  • 5.                                   B  U  S  I  N  E  S  S   O  V  E  R  V  I  E  W                                             Corrosion  is  a  major  issue  anywhere  steel  or  other  ferrous  metals  are  used,  from   industrial   machinery   to   household   tools.   It   forces   repairs   and   replacements,   causes  unexpected  downtime,  and  threatens  the  lives  of  people  who  depend  on   modern  tools  every  day.  In  January  of  2015  alone,  Subaru1   and  Harley  Davidson2   have  issued  recalls  due  to  corrosion  issues  that  may  prevent  brakes  from  working,   threatening  the  safety  of  motorists  who  use  and  share  the  roads  with  over  a  half   million  vehicles  on  the  road  today.       Similarly,  electrical  insulation  is  relied  upon  to  ensure  electronics  work  as  expected   rather  than  causing  entire  systems  to  fail  –  or  houses  to  burn  down.  The  National   Fire   Protection   Agency   reports   that,   in   2011   alone,   there   were   47,700   home   fires  that  resulted  in  418  deaths  and  $1.4  billion  in  property  damage,  all  caused   by   electrical   failure   or   malfunction.3   Additionally,   short   circuits   in   even   minor     1AutoBlog. Source: http://www.autoblog.com/2015/01/08/subaru-reapply-anti-corrosion-wax-brake-lines-regional-recall/   2AutoBlog. Source: http://www.autoblog.com/2015/01/01/harley-davidson-brake-bolt-corrosion-recall/   3National Fire Protection Association. Source: http://www.nfpa.org/research/reports-and-statistics/fire-causes/electrical   6  
  • 6.                 components  due  to  water  incursion,  solder  whiskers,  or  mechanical  stress  may   necessitate  the  replacement  of  expensive  systems  ranging  from  cell  phones  and   automobiles  to  industrial  equipment.  Even  NASA  recommends  coating  electronics   to  prevent  incidents  such  as  the  failure  of  the  1998  Galaxy  IV  satellite.4       Nanoprotech   manufactures   and   distributes   the   best   anticorrosion   lubricants   and   electrical   coating   insulations   on   the   market   today.   Using   nanotechnology   that  outperforms  simple  oils  and  PTFE  (Teflon),  Nanoprotech  displaces  100%  of   moisture  within  seconds  and  forms  a  durable  2-­‐3  micron  coating  that  is  invisible   and  flexible.  Nanoprotech  continues  to  perform  even  when  the  protected  object   is   submerged   in   salt   water   and   chlorinated   water.   The   protective   coating   is   functional  in  temperatures  ranging  from   112° to  +320° F  (-80° to  +160° C),  and   maintains  full  protection  against  corrosion  and  oxidation  even  when  applied  to   wires  that  carry  up  to  100,000  volts.       The   effectiveness   of   Nanoprotech   can   be   demonstrated   by   operating   an   electric   drill   underwater.   Independent   testing   confirmed  that  when  a  drill  is  submerged  for  10  minutes,  removed,   disassembled,  has   Nanoprotech  applied,   reassembled,  then   let   rest  for  10  minutes,  it  operates  fully  when  re-­‐submerged.       The   Company   recognizes   that   many   other   companies   claim   to   provide   best-­‐in-­‐   class   protection.   To   demonstrate   the   superiority   of   its   products,   Nanoprotech   hired  an  independent  laboratory,  Qualtest,  Inc.,  to  compare  Nanoprotech  against   its   competitors.   Water   dispersants   and   oxidation   inhibitors   were   applied   to   steel  plates  and  exposed  to  salt  fog  for  two  rounds  each  lasting  only  48  hours.   The   following   samples   were   tested:   untreated   control   sample,   Liquid   Wrench,   DuPont,  L.C.Wax  Alumaslick,  Nanoprotech,  Ultra  Lube,  WD-­‐40,  and  Blaster.  After   the  testing,  the  plates  were  photographed,  as  seen  in  the  following  image:       4National Aeronautics and Space Administration. Source: http://nepp.nasa.gov/WHISKER/reference/tech_papers/2010-Panashchenko-IPC-Tin-   Whisker.pdf  
  • 7.                                                             These  images  speak  for  themselves.  All  of  the  samples  showed  substantial  corrosion,   except  for  Nanoprotech.  Nanoprotech  is  the  most  protective  product  on  the  market.5     Nanoprotech  guarantees  the  effectiveness  of  its  products.  In  harsh  environments,   such  as  water  craft,  the  Company  offers  6  months  of  protection.  In  areas  that  are   regularly  exposed  to  saltwater,  Nanoprotech  will  last  for  1  year.  In  locations  over  50   miles  away  from  an  ocean,  Nanoprotech  guarantees  its  products  for  up  to  3  years.     Nanoprotech  is  available  in  application-­‐specific  formulations.  Each  of  these  products   is  offered  in  a  spray  can  designed  for  effective,  even  application  of  Nanoprotech.   One  can  protects  22  square  feet  of  material.  Specific  formulas  include:     » Automobile  Electric   » Motorcycle  Anticor   » Motorcycle  Electric         » Marine  Anticor   » Home  &  Garden  Electric   » Gun  Anticor         » Marine  Electric   » Bicycle  Anticor   » Home  &  Garden  Anticor                               5The full report from Qualtest, Inc., is available at: http://www.nanoprotech.org/var/site/storage/images/certificates/salt-fog-test-report/2418-1-   eng-US/SALT-FOG-TEST-REPORT.jpg   7  
  • 8.               Nanoprotech   also   offers   convenient   packages   of   electric   and   anticor   products   for   marine,  motorcycle,  and  home  &  garden  applications,  in  addition  to  one  gallon  bulk   packaging  of  electric  and  anticor  products.       Nanoprotech  is  also  in  the  final  stages  of  testing  and  preparing  for  release  (in  April,   2015)  its  latest  product  that  is  designed  for  use  on  glass  and  mirrors,  where  its  existing   products  may  have  minor  but  discernible  effects.  Crystal  Clear  creates  an  optically  clear   coating  that  repels  rain,  mud,  snow,  and  abrasion.  In  automotive  applications,  Crystal   Clear  makes  it  unnecessary  to  use  windshield  wipers  above  approximately  40  miles   per  hour,  reducing  the  effort  and  expense  of  replacing  these  parts  and  enhancing  the   effectiveness  of  headlights  and  safety  lights  in  inclement  weather.  Used  on  building   windows,  Crystal  Clear  makes  it  possible  to  wash  glass  perfectly  clean  by  simply  rinsing   it  with  water.   Glass  doors  will  no  longer  need  to  be  cleaned  frequently  to  minimize   handprints,  and  exterior  windows  that  are  treated  with  Crystal  Clear  will  be  far  less   expensive  to  maintain  in  a  pristine  state,  which  is  especially  valuable  to  managers  of   high-­‐rise   buildings.   Crystal   Clear   will   also   provide   long-­‐term   protection,   surpassing   similar  products  that  need  to  be  regularly  reapplied  to  achieve  protection  that  is  not   nearly  as  effective  as  Crystal  Clear.       Nanoprotech   is   currently   offered   at   retail   prices   of   $17.80   to   $23.40,   depending   on   application,   with   gallon   jugs   of   electric   Nanoprotech   priced   at   $273   and   anticor   Nanoprotech  priced  at  $262.  While  these  rates  are  high  on  a  per-­‐application  basis,  the   long  life  and  effectiveness  of  Nanoprotech  provides  much  higher  value  for  the  dollar   than  any  other  product  on  the  market.       The   success   of   Nanoprotech   in   Europe,   Asia,   and   Africa   has   proven  that   customers   ranging   from   households   to   industrial   manufacturers  find   tremendous   value   in   the   Company’s  products.   Now,  Nanoprotech  is   looking   to  expand   into  North  and   South   America,  starting  with  one  of  the  best  markets  in  the  world:  the  United  States.       8  
  • 9.         M  A  R  K  E  T   A  N  A  LY  S  I  S   S  U  M  M  A  R  Y                     The  Nanoprotech  formula  was  developed  in  2007  and  was  refined  into  a  consumer   product  line  in  2010.  The  products  were  being  sold  in  8  countries  in  2012,  21  countries   in  2013,  and  43  countries  in  2014.  The  following  map  shows  Nanoprotech’s  global   reach.  To  date,  over  $100  million  of  Nanoprotech  products  have  been  sold.                                                                       With  expansion  into  the  United  States,  Nanoprotech  seeks  to  reach  an  estimated   316   million   consumers   and   24   million   businesses.6   Some   of   these   potential   customers  will  only  need  to  buy  one  can  of  Nanoprotech  to  protect  their  household   items   for   years   to   come;   others   may   use   gallons   of   Nanoprotech   on   a   regular   basis.  Every  individual  and  business,  however,  can  find  benefits  in  Nanoprotech.     6Business Analyst Online. Source: http://bao.esri.com/       9  
  • 10.                   In   the   automotive   sector   alone,   market   analyst   ESRI   estimates   that   Americans   spent   $7.4   billion   on   aftermarket   parts,   equipment,   and   accessories,   plus   an   additional  $1.5  billion  on  cleaning  products  and  services.7   Americans  also  spent   $4.5  billion  on  vehicle  electrical  system  repairs,  many  of  which  could  have  been   avoided  altogether  if  the  vehicle’s  systems  were  protected  with  Nanoprotech.       Perhaps  the  best  indicator  for  the  market  potential  of  Nanoprotech’s  products   is  in  the  WD-­‐40  Company.  Invented  in  1953  and  available  at  retail  in  1958,  WD-­‐   40  is  a  household  name  for  the  product  that  offers  similar  features  to,  but  is  far   less  effective  than,  Nanoprotech.  As  a  public  corporation,  however,  there  is  a   wealth  of  information  available  about  WD-­‐40’s  performance  in  the  market.  In   FY  2014,  WD-­‐40  generated  $181  million  in  revenue  from  sales  in  the  Americas.   WD-­‐40’s  growth  is  largely  due,  according  to  its  latest  annual  filing,  “to  a  higher   level  of  promotional  activities  and  increased  distribution.”  Although  the  WD-­‐40   Company  sells  products  other  than  its  namesake,  sales  “of  homecare  and  cleaning   products  in  the  Americas  segment  decreased  $2.3  million,  or  7%,”  showing  that   their  “multi-­‐purpose  maintenance  products”  are  in  the  highest  demand  –  and   increased  by  11%,  year-­‐over-­‐year.8   The  market  for  Nanoprotech’s  products  is  at   least  as  large  as  that  for  WD-­‐40,  as  many  individuals  and  businesses  that  do  not   find   WD-­‐40   to   be   effective   for   their   needs   would   enjoy   the   effectiveness   and   durability  of  Nanoprotech.       As   of   March,   2015,   Nanoprotech   FL   has   signed   distributorship   agreements   worth   an   estimated   $970,000   per   year.   These   include   exclusive   agreements   for  Colombia  (worth  $450,000  per  year)  and  Chile  (worth  $180,000  per  year),   and  non-­‐exclusive  agreements  for  the  states  of  Florida  ($110,000  per  year)  and   California  ($230,000  per  year).  The  Company  anticipates  seeing  nearly  $1  million   in  revenue  from  these  territories  alone  and  has  many  more  major  markets  to   expand  to  in  the  western  hemisphere.     7Ibid.   8WD-40 Company. 2014 Annual Report. Source: http://investor.wd40company.com/files/doc_financials/annual/2014-Annual-Report.pdf     10  
  • 11.               Market  Segmentation   Nanoprotech’s  U.S.  sales  to  date  have  been  predominantly  for  marine  applications,   representing  over  half  of  both  electric  and  anticor  sales.  The  following  table  shows   this  segmentation,  with  slices  in  green  representing  electric  products  and  slices  in   blue  showing  anticor  products.         Oct.  2014  -­‐  Jan.  2015                                                     The   Company   understands   that   this   segmentation   reflects   its   existing   marketing   efforts   more   than   its   actual   potential.   Nanoprotech   projects   that   its   largest   segments  will  be  in  the  automobile  and  marine  markets,  with  home  &  garden,  gun,   and  bicycle  products  each  maintaining  substantial  but  smaller  volumes  of  sales.       Nanoprotech   also   anticipates   finding   a   significant   market   for   its   products   in   the   aerospace  industry.  This  segment  maintains  very  high  standards  for  the  products   it   uses   due   to   the   consequences   of   equipment   failure.   Therefore,   Nanoprotech   expects  that,  as  the  quality  of  its  products  are  proven,  aerospace  customers  will   purchase  the  Company’s  electric  and  anticor  offerings  in  bulk  quantities.       1  1   U.S.  Sales  
  • 12.               Industry  Analysis   Nanoprotech  will  compete  in  the  $18.0  billion  Lubricant  Oil  Manufacturing  industry   (NAICS  32419).  This  industry  sells  automotive  and  industrial  lubricants  at  wholesale,   to   retailers,   and   directly.   It   has   experienced   4.1%   annual   growth   since   2009   and   is   projected   to   continue   growing   at   an   average   rate   of   4.0%   per   year   through   2019,   a   rate   that   is   consistently   stronger   than   the   overall   economy.   Demand   for   industry  products  is  driven  by  consumer  and  commercial  investment,  such  as  for   new  cars  and  machinery  and  maintenance  of  the  same.   Customer  preferences  are   shifting  toward  higher  end  products,  such  as  synthetic  oils,  which  provide  industry   participants   with   high   margins.   Profit   is   expected   to   grow   to   6.3%   of   revenue   in   2019.  The  following  graphics  illustrate  the  performance  of  this  industry,  courtesy   of  IBISWorld.9       Key  Statistics   Snapshot         $18.0bn   $1.1bn         Annual  Growth  09-­‐14           $922.7m         Annual  Growth  14-­‐19           347     Revenue  vs.  employment  growth     24     16         World  price  of  crude  oil     120       100     %change         8     0     −8     −16         $perbarrel             80       60       40   Year   06   08   10   12   14   16   18   20   Year   06   08   10   12   14   16   18   20   Revenue   Employment   SOURCE:  WWW.IBISWORLD.COM       9IBISWorld. Source: http://www.ibisworld.com     12   Revenue   4.1%   4.0%   Profit   Wages   Businesses  
  • 13.               This  industry  is  moderately  concentrated,  with  the  top  three  participants  (ExxonMobil,   Royal  Dutch/Shell,  and  Ashland)  accounting  for  44.5%  of  revenue  in  2014.  Large  but   minority  industry  participants  focus  on  specific  market  niches.  For  example,  Quaker   Chemical   (which   is   unrelated   to   Quaker   State)   focuses   on   metalworking   process   chemicals,   while   WD-­‐40   offers   a   general   purpose   water-­‐dispersing   product   that   is   widely  marketed  and  sold  largely  on  the  basis  of  brand  recognition.       The  key  success  factors  identified  by  IBISWorld  include  being  able  to  adapt  products   to  rapidly  meet  market  conditions,  to  ensure  the  reliable  and  affordable  supply  of  key   inputs,  and  working  closely  with  customers  to  ensure  that  products  are  positioned   correctly  and  even  to  develop  proprietary  solutions  for  specific  technical  problems.         Competitive  Comparison   There   are   several   other   manufacturers   of   anticorrosion   and   electric   insulation   products.   The   advantages   that   these   products   offer   are   brand-­‐name   recognition   and  low  per-­‐application  cost.  However,  none  of  these  competitors  offer  products   that  approach  the  quality  or  durability  of  Nanoprotech.       For   its   anticor   products,   Nanoprotech   has   an   independent   laboratory   conduct   a   comparison   test   in   a   salt   fog   environment.   This   test   is   described   in   the   previous   Business  Overview  section.  After  48  hours  of  exposure,  only  the  L.C.Wax  Alumaslick   product   provided   similar   anticor   properties;   all   other   products   failed   to   prevent   substantial   and   widespread   corrosion.   However,   after   96   hours   of   exposure,   the   Alumaslick  treated  steel  appeared  to  be  just  as  heavily  damaged  as  the  next-­‐best   products,   Steel   Liquid   Wrench   and   WD-­‐40.   In   order   to   maintain   similar   levels   of   protection,   Alumaslick   would   need   to   be   applied   several   times   per   week   while   Nanoprotech  only  requires  one  or  two  applications  per  year.  This  test,  conducted   by  Qualtest,  Inc.,  shows  that  second  best  isn’t  good  enough  at  all.           1  3  
  • 14.               Best  result:  Nanoprotech   Second  best:  Alumaslick                                       For  its  electric  products,  Nanoprotech  not  only  protects  against  damage  but  cleans   and   removes   existing   damage.   In   a   test   with   printed   circuit   boards,   submerging   unprotected  boards  into  water  caused  80%  of  them  to  fail.  Of  those  failed  boards,   60%  returned  to  full  functionality  after  application  of  Nanoprotech.  When  exposed   to  salt  fog,  all  untreated  circuit  boards  failed  while  all  Nanoprotech  treated  boards   maintained  all  working  capacities.       With  Nanoprotech:   Untreated:                     Competing   products,   including   3M/Scotch,   DeoxIT,   Arathane   5750,   and   generic   conformal  coating  cannot  offer  these  advantages.       Simply   stated,   there   is   no   competitor   for   the   capabilities   of   Nanoprotech.   The   strength   of   the   Company’s   competitors   lays   solely   in   their   marketing   and   distribution  capabilities,  which  Nanoprotech  intends  to  correct  as  it  expands  in   the  American  markets.           1  4  
  • 15.                           Competitive  Advantages     Nanoprotech   maintains   many   advantages   over   its   competition.   As   a   business,  it  has:       » Established  manufacturing  process  and  supply  chain   » Proven  success  of  its  products  in  overseas  markets   » Virtually  unlimited  potential  in  diverse  variety  of  market  verticals       As  a  product,  Nanoprotech  has  advantages  that  allow  it  to:       » Build  waterproof  and  water-­‐repellant  coating   » Can  be  applied  to  wet  surfaces,  removing  water  within  seconds   » Penetrate  layers  of  rust   » Facilitate  cleaning   » Stop  any  existing  corrosion   » Maintain  elasticity  and  provides  lubrication   » Avoid  harmful  effects  on  metal,  plastic,  rubber,  paint,  or  ceramics   » Contain  no  rubber,  silicone,  acrylics,  or  tetrafluoroethylene   » Operate  in  a  wide  range  of  temperatures  and  environments   » Reliably  maintain  performance  for  a  year  or  more  in  most  conditions                         15  
  • 16.         S  T  R  AT  E  G  Y   A  N  D   I  M  P  L  E  M  E  N  TAT  I  O  N   S  U  M  M  A  R  Y                 Nanoprotech  will  develop  a  brand  that  communicates  its  core  values  of  effective,   durable,   and   reliable   protection   of   mechanical   and   electric   goods.   A   cohesive   brand  identity,  including  a  memorable  logo  and  all  necessary  marketing  collateral,   will   transmit   a   clear   message   of   these   values   to   the   Company’s   distributors   and   end   customers,   and   will   guide   the   development   of   marketing   campaigns.   Nanoprotech   plans   to   utilize   both   business-­‐to-­‐business   and   consumer   focused   marketing  approaches,  leveraging  a  strong  online  presence,  an  ever-­‐growing  base   of   distributors,   and   representation   at   expos   and   trade   shows.   This   strategy   is   specifically  designed  to  reach  the  broad  base  of  customers  who  will  enjoy  the  many   benefits  of  Nanoprotech.         Objectives   The  Company  has  identified  the  following  objectives  and  benchmarks  as  it  begins   operations  in  the  United  States:       SHORT-­‐TERM   » Establish  itself  as  a  trusted,  widely  known  and  appreciated  brand   » Build  a  base  of  distributors  that  is  large  enough  to  sustain  business   » Create   a   manufacturing   facility   that   will   meet   the   production   of   all   American  customers       LONG-­‐TERM   » Enhance  its  client  base  to  sustain  the  business  and  support  its  growth  objectives   » Maximize   market   penetration   with   a   mix   of   licensed   representation   and   direct  sales           16  
  • 17.           Marketing  Strategy   Nanoprotech   will   use   a   direct   sales   approach   and   a   variety   of   advertising   channels   to   increase  its  exposure  among  prospective  customers.  Specific  channels  will  include:       Print  media:  Nanoprotech  will  place  ads  in  a  variety  of  print  publications  that  are  tailored   to  each  market  segment.  These  advertisements  will  communicate  key  value  propositions   of   Nanoprotech,   both   in   using   the   product   and   investing   in   becoming   a   licensed   representative,  and  will  also  include  any  limited-­‐time  discounts  or  other  incentives.       Word  of  mouth:  The  advent  of  social  media  means  that  word  travels  faster  than  ever   before   between   family   members,   peers,   and   colleagues   who   are   pleased   with   their   experiences  with  a  particular  business.  The  Company  will  actively  cultivate  this  effective  and   inexpensive  resource  to  generate  interest  in  its  products.  According  to  research  conducted   by  Nielsen,  word  of  mouth  remains  among  the  most  trusted  forms  of  advertising:  84%  of   consumers  around  the  world  say  they  trust  earned  advertising,  such  as  word  of  mouth  or   recommendations  from  friends  and  family,  above  all  other  forms  of  advertising.       Website:   The   Company   will   continuously   enhance   and   optimize   its   website   (www.   nanoprotech.org)  to  generate  interest  in  its  products.  This  website  will  be  search  engine   optimized   and   mobile   compatible,   and   will   include   a   shopping   cart,   product/service   information,   regularly   updated   blog,   client   testimony,  photo   gallery,  company   profile,   location,  and  contact  information.       Internet  advertising:  Nanoprotech  will  use  a  combination  of  internet  advertising  methods   including  Pay-­‐per-­‐Click,  Google  AdWords,  Tags,  and  banner  ads  as  well  as  search  engine   optimization  of  its  website.  This  effort  will  help  generate  interest  in  the  Company  from  the   online  community  and  general  public.  Nanoprotech  may  also  initiate  contact  with  specific   online  communities  –  such  as  websites  that  cater  to  automotive,  marine,  firearm,  and   bicycling  enthusiasts  –  to  extend  special  offers  and  product  demonstrations.       Viral  marketing:  The  Company  will  rely  on  online  viral  marketing  to  rapidly  reach  a  broad   audience.  Viral  marketing  efforts  hinge  on  the  creation  of  engaging  content  designed  to  be   shared  by  viewers.  To  encourage  social  sharing,  Nanoprotech  will  pursue  cross-­‐marketing   with  other  websites,  create  YouTube  videos,  establish  a  presence  on  social  networking   sites,  blog  regularly,  and  engage  frequently  on  Twitter.       17  
  • 18.                 Direct  sales:  In  the  business-­‐to-­‐business  world,  direct  advertising  has  always  been  the   most  effective  means  of  reaching  new  customers.  For  this  reason,  Nanoprotech  will  use   direct  sales  calls,  presentations,  and  appointments  with  major  distributors  and  retailers  of   allied  products  throughout  the  United  States.  The  Company  will  also  arrange  conference   calls  and  webinar  presentations  with  faraway  prospects  when  geography  is  a  limiting  factor.   The  benefits  of  a  direct  sales  approach  include  lower  upfront  marketing  costs,  enhanced   lead  generation,  and  immediate  results.       Networking:   As   with   any   relationship-­‐based   business,   the   Company   will   benefit   from   participating  in  a  number  of  networking  opportunities  that  have  the  potential  to  yield   new  business  contacts  as  well  as  nourish  existing  ones.  Nanoprotech  will  attend  a  variety   of   events   that   draw   substantial   numbers   of   prospective   clients,   including   seminars,   networking  events,  and  conferences  which  provide  opportunities  to  speak  to  and  associate   with  larger  audiences.       In-­‐store   advertising:   It   is   essential   that   the   Company   create   business-­‐to-­‐consumer   marketing   pieces   to   be   displayed   within   the   retail   environment.   Nanoprotech   has   developed  a  sales  kiosk  that  includes  a  video  display  stand,  flyers,  catalogs,  and  display   hooks.  This  kiosk  is  given  to  each  licensed  representative  as  an  initial  package  to  help   them  introduce  Nanoprotech  products  to  their  local  market  by  articulating  the  quality  and   identity  of  the  brand.       Promotional   samples:   The   Company   offers  free   samples   of   its   product(s)   to   potential   commercial  customers  for  their  in-­‐house  evaluation  of  Nanoprotech.  This  allows  customers   who  may  buy  bulk  quantities  of  the  product  to  see  firsthand  how  Nanoprotech  is  the  best   product  on  the  market  today.       Content   marketing:  The   Company   will   emphasize   its   industry   expertise   and   provide   a   valued  service  to  clients  and  interested  parties  by  creating  high-­‐quality,  sharable  content.   Nanoprotech  will  continue  to  conduct  original  research  and  release  reports  and  white   papers  on  its  findings,  serve  as  a  contact  for  journalists  and  media,  publish  articles  on   LinkedIn,  or  contribute  to  trade  journals  and  popular  publications.  This  strategy  will  build   cachet  for  Nanoprotech  within  the  industry  while  organically  improving  the  Company’s   search  engine  results.       18
  • 19.