1. Advanced Safety Technology For The
Automotive and Emergency Vehicle Industries
E x e c u t i v e S u m m a r y E m ergency Traffic Alert, Inc.
Company Information
Emergency Traffic Alert, Inc.
3016 Casto Lane, Suite 201
Salt Lake City, UT 84117
www.rfsiren.com
Company Contact
Raymond Cannefax
801-541-0468
r_cannefax@msn.com
Management Team
Raymond Cannefax, President,
Founder & Chairman
David Robinson - Director
Stephen Wyatt, Treasurer
Robert Mercer, Adviser
Frederik Swemmer, Technology
Industry
Auto, Emergency Vehicle,
Highway Construction Safety
Business Activity
Design, Develop & Patent
Proprietary Technology.
Manufacture, sell, lease and
license the technology
to Automobile and Emergency
Equipment manufacturers.
Financing Sought
First Round: $2.000,000
with an exit at end of
year three.
Use of Proceeds
· Technology improvement
· Proprietary IP & circuitry
development
· Manufacturing
· Entry to additional markets
· Global acceptance
Exits
Acquisition by an automobile
manufacturer or Safety
Equipment Supplier to the
automotive industry, an
electronic device or GPS supplier
to the automotive industry.
Opportunity Highlights
· Experienced Management
· Significant unaddressed and
unmet and critical need
· Extensive proprietary
technology ownership
· Compelling statistical data
· Protected technology
· Additional unaddressed
markets
Emergency Traffic Alert, Inc. (the “Company”) has developed new technology to
reduce motor vehicle accidents, particularly emergency vehicle and law enforcement
vehicle accidents by actively engaging distracted drivers. The Company’s crash
reducing technology is designed specifically to reduce fatalities and injuries caused by
accidents involving emergency vehicles, law enforcement vehicles, cautionary road
maintenance zones, and reduced speed limit zones. The Company has an experienced
team of success oriented executives and proprietary, proven and rigorously tested
technologies designed to actively engage distracted drivers and reduce crashes of
emergency and law enforcement vehicles and fire apparatus.
Technology Breakthrough
Due to the increase of distracted driving and the associated emergency vehicle
accidents, fatalities and injuries, the Company has developed, manufactured and
proven technology that will reduce driver distraction and allow emergency vehicles
(Ambulance, Fire, Police) to safely negotiate traffic. The technology has further
applications Road Construction Zone safety, Recreation Safety and Light-Rail. Safe-passage
signal changing technology for emergency vehicles but is dissimilar, works
only at select intersections and cost approximately $5,000 per ample. The Company’s
technology is effective at all intersections and every mile of public roadways. It can be
installed in existing motor vehicle for less than $100. New vehicle technology
installation by OEM’s is projected at under $50 per new motor vehicle built. Highway
work zone technology is equally cost effective as is a pedestrian and bicyclist version
of the Company’s technology.
Current Situation
There are over 9,000 Ambulance accidents every year; Half of these accidents result in
fatalities, (U of Utah, KSL News 2012). A 2010 study of 466 randomly selected rural
Ambulance accidents validated 962 injuries and 99 fatalities. EMS personnel
responding to emergencies and transporting patients are at highest risk. The second
leading cause of Fire Fighters fatalities are accident while responding to emergencies.
In 2011, the Los Angeles Police Department paid $24 million in settlements and
verdicts for accidents involving their police cars. Insurance carriers are paying billions
for these accidents and the associated “wake accidents” for which there are no
available statistics.
Nationally, there are over 490,000 emergency vehicles and an estimated 1,148,000
EMS personnel respond to approximately 135 million emergencies a year in the
United States. In 2014 more than 17 million new cars, filled with driver distracting
technologies, will be sold in the United States. Driver distraction, the root cause of
most accidents, are caused by a plethora of sensory distractions such as audible and
visual navigation systems, audio systems, cellular phones, texting, iPad connectivity,
Internet accessibility and email, loud conversations, HVAC fan noise, etc.
The constantly repeated comment by surviving emergency vehicle accident victims
during follow-up investigations is this: “I had a green light and was unaware an
emergency vehicle was coming my way.” Highway construction worker incidents are
similar “I never saw the ‘Caution’ or ‘Reduced Speed Limit’ signs.” Over 60% of all
accidents are caused by driver distractions such as texting, cell phone use, checking
the navigation system map, etc. Auto accidents cost our Nation $8 billion annually.
Primary Cause of Emergency Vehicle, and Highway Work Zone Accidents
Distracted Driving is the leading cause of accidents involving Emergency Vehicles, Law
Enforcement Vehicles and Highway Work Zones workers. Visual and audible warnings
are no longer noted as drivers deal with the growing multitude of electronic
distractions provided by the OEM while operating their vehicles.
Acoustic comfort demands have caused the auto industry to reduce motor vehicle
interior sound levels to the lowest levels possible. Over 30decibel of outside noise is
now blocked from a vehicle’s interior when windows are up. Audible and visual
navigation systems, concert hall quality audio systems, connectivity to cell phones,
iPods, iPhones, iPads, Internet connectivity, loud conversations and numerous other
distractions are responsible for over 65% (DOT) of today’s automobile crashes and
contribute extensively to driver distraction and vehicle accidents.
Advanced Safety Technology For The
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2. Automotive and Emergency Vehicle Industries
E x e c u t i v e S u m m a r y Emergency Traffic Alert, Inc.
The Solution
Management Team
The emergency alert technology developed by the Company utilizes proprietary and
patent pending technology to alert drivers of approaching emergency vehicles, of
stopped law enforcement and emergency vehicles and numerous other cautionary
situations by delivering visual and audible stimuli to the vehicle’s interior using the
vehicles interior lighting and audio system or an after-market device. The in-car
emergency alert is activated by the Company’s technology installed in emergency
vehicles. The technology is activated by the same switch that activates an emergency
vehicle’s warning light-bar. With our technology, when siren sound and warning lights
are blocked from a drivers hearing or view, the Company’s alert system’s visual and
audible stimuli actively alerts drivers of emergency vehicles, stopped law enforcement
vehicles and other cautionary or hazardous situations. Early and distinct delivery of
emergency alerts to a motor vehicle’s interior will ensure sufficient reaction time for
drivers to respond to emergency vehicle alerts hazardous situations and reduce
emergency vehicle, law enforcement vehicle, and numerous other accidents.
The proposed federal mandate of this technology is to reduce driver distraction thereby
reducing fatalities and injuries caused by accidents involving emergency vehicles and
law enforcement vehicles. The Company’s technology will save lives, reduce injuries
and reverse the growing financial burden on accident victim families, emergency
operations, municipalities, federal and state governments, insurance carriers by
reducing accidents involving emergency, fire and law enforcement vehicles.
A federal mandate requiring installation of the Company’s technology into all new
vehicles manufactured built after 2019 has been declared by the Secretary of
Transportation, Anthony Foxx. NTSB Chairman Secretary Hersman is in full support.
Mandating our technology is equivalent to the federal mandates requiring seat belts,
head rests, air bags, ABS, and numerous other safety technologies that are now
standard equipment in new cars. The Company has met with auto product and after
market providers to gain industry insight and understanding of the auto industry.
The Company’s principals and management have vast experience in the automotive
industry, in new technology development and implementation, corporate development
and growth and have held senior level management responsibilities.
Principals & Management
· Raymond Cannefax, President Chairman and founder of Emergency Traffic Alert,
Inc. has 20+ years of experience in developing new high-tech technologies.
Recently Mr. Cannefax served as President & CEO of publicly held Paradigm Medical
Industries, Inc., a manufacturer of high-tech medical diagnostic devices.
· Robert Mercer, Adviser, is the former General Counsel and V.P. of Volvo Cars and
Mazda, USA, following 9 years as a member of Ford’s legal team. Mr. Mercer is an
expert in automobile manufacturer law, government regulations and the federal
mandate process.
· David Robinson, Director - Managing Director of EZ Lift, LLC., SimplicityMD, Inc. and
former President & CEO of TechniScan, Inc., Mr. Robinson has extensive expertise in
the new technology development, corporate development, funding, product
development and market delivery.
· Stephen Wyatt, Treasurer – Founder of Wyatt & Associates with over 20+ years of
accounting expertise as a CPA specializing in corporate finance and audits.
· Frederik Swemmer, Technology Director – Mr. Swemmer has engaged in the
development and design of specialized electronic circuit boards for 15+ years. He
has extensive experience with European and United States electronic circuitry
design, development and production and holds numerous certifications.
· Franco Nunez, Product Development & Installation Director – Mr. Nunez will
manage fleet installations for police and fire departments and ambulance
companies.
Advisers
· Dominic Dobson – Automotive industry specialist. Mr. Dobson worked closely with
highly recognized organizations during his extensive racing career. Mr. Dobson was
engaged with the LeMay Automotive Museum in Tacoma, WA since its inception.
Mr. Dobson developed proprietary technology patents recently sold to Google.
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3. Advanced Safety Technology For The
Automotive and Emergency Vehicle Industries
E x e c u t i v e S u m m a r y Emergency Traffic Alert, Inc.
Intellectual Property
Regulatory
Patents – The Company owns
rights to device patent
applications specific to technology considered a break-through in Vehicle-to-Vehicle
communication and fixed warning device-to-vehicle signaling. The Company’s patent-pending
technology covers various spectrums of applying its technology that include
stand-alone device configurations, proprietary electronic circuitry connected to a
vehicle’s wiring harness and designs that can be implemented to compliment US DOT
mandates for this technology for all new vehicles. The Company’s in-car
warning/alert technology provides a cost effective means for delivering audible and
visual warning alert signals to the interior of motor vehicles. The Company has
addressed all possible means of Vehicle-2-Vehicle signaling to alert public and
commercial vehicles, including GPS. Claims in the Company’s patent applications
include but are not limited to the following protectable elements:
1. Effective and timely communication between emergency, fire and law
enforcement vehicles and all licensed private and commercial vehicles.
2. Delivery of obvious warning alert stimuli to the interior of private and commercial
motor vehicles utilizing unavoidable audible and visual warnings to alert drivers
of approaching emergency vehicles, of approaching emergency sites, of stopped
law enforcement vehicles. Numerous other applications exist.
3. Applications for use of the technology in other areas include Highway
construction zones, pedestrians and bicyclist alerts, the Nation’s adverse weather
notification Early Alert System operated by NOAA, and public transportation.
The Company has manufactured and tested a number of functional prototypes of its
in-car alert technology and continues ongoing product development. A functional
2007 Ford Focus dashboard instrument cluster mock-up is used for demonstration
purposes to the automotive community. The Company has received FTO on its IP.
Analysis of Prior Art – Emergency Alert Solutions technology incorporates unique
technologies and methodologies that fall outside of other existing and pending
patents and does not infringe. The need for alternate warning systems to enhance
emergency vehicles safety through crash avoidance and reduced driver distraction has
been the subject of investigation for decades. To date, no one other than the
Company has developed the proposed concepts into functional solutions. The
Company has functional devices that have successfully passed extensive and rigorous
tests.
IP & Governmental Approval – The Company’s patent-pending technology has
allowed the development of technology concepts that evolved into prototypes
devices used for technology validation. The Company’s proprietary PCB design
minimizes the footprint to allow for simple placements on or under a dash board, or
in the engine compartment. Verbal support has been received from existing and
former politicians, from Law Enforcement and Fire Department heads, and from every
EMT, police officer and fire fighter who is aware of the technology. Communication
with the major insurance carriers, I.I.H.S. and Fire and Police Unions for support is in
process. Utah State University has agreed to conduct real-time, live testing in Logan.
US DOT & NHTSA – Our testing is intended to meet governmental standards to help
expedite a upcoming federal mandate of this technology. The Company is
communicating with both agencies and is optimistic the proposed mandate process
will be swift. There are additional federal and private agencies the Company is
lobbying for support. The Logan, Utah live tests will validate of the Company’s crash
reducing technological. Connecticut is targeted to be the first state to implement this
technology.
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4. Advanced Safety Technology For The
Automotive and Emergency Vehicle Industries
E x e c u t i v e S u m m a r y Emergency Traffic Alert, Inc.
Market Opportunity
Use of Proceeds
Seventeen million new cars are projected to be sold in the United States in 2013.
Globally, 41,000,000 new motor vehicles are manufactured annually. There are
490,000 emergency vehicles in the United States. 48,384 Ambulances provide daily
service. There are 30,170 fire stations and 581,888 police departments operating in
America. There are 480,000 school buses in service and an untold number of
“Caution” signs and roadway construction vehicles in use daily throughout the United
States. There are many hundreds of weather warning sirens.
The U.S. deaf and hearing impaired demographic exceeds 30 million. A 3% market
penetration at $99 per device would generate $54.4 million in revenue. After-market
stand-alone devices connected to an older vehicle’s electrical systems via
hard-wire or cigar lighter and will provide a $580 million market at 3% market
penetration. Revenue from retrofitting existing emergency vehicles is estimated to be
$55 million with device cost at $150. The revenue calculations are based on the
75.2% of the Nation’s population living in urban and metropolitan areas.
The Company is considering licensing delivery technology sales and distribution to a
select siren and GPS manufacturer and licensing receiver technology production to
the OEM’s or a major automotive safety product supplier. If receiver technology is
licensed, the annual royalty revenue should exceed $12 million for U.S. sales. If
manufactured and sold directly to the OEM’s at $23 per receiver, gross annual U.S.
sales revenue for 2013 model care would be $368 million. COG of $12 without
burden is approximated to be $192 million. New transmitting technology sales for
new emergency vehicles would generate approximately $2.5 million annually.
Transmitter sales for highway safery cautionary devices are estimated to generate
$66.25 million.
Projected over five years, gross sales revenues generated by the Company in all
automotive and emergency vehicle sectors are expected to exceed $1 billion for
United States.
Use of proceeds for Company operations for year one include continued product
development, additional patent filings, marketing to the deaf and hearing impaired
demographic, lobbying the political and governmental sector to mandate this
technology, cost of licensing to specific organization with focus on safety executives of
the OEMs, insurance carriers and fire and police unions for a total of $475,000.
Use of Proceeds – Year One
Product
Development,
$151,500, 32%
Legal &
Patents,
$53,000, 11%
Inventory,
$86,500, 18%
Admin,
$181,240,
39%
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5. Advanced Safety Technology For The
Automotive and Emergency Vehicle Industries
E x e c u t i v e S u m m a r y Emergency Traffic Alert, Inc.
Financial Projections
Exit Strategy
Margins and profitability vary tremendously whether the company manufactures its
technology or licenses OEM’s and/or others to manufacture and market the
Company’s patented technology. Projections in the two-year Pro-forma are based on
the Company manufacturing product for the deaf and hearing-impaired demographic
and beginning installation of transmitters to the existing emergency vehicles in
service. The mandate for this technology announced by Sec. Foxx for U.S. automotive
new vehicle applications is scheduled for all new 2019 model cars.
PROFORMA
Revenue,
$281,750
Revenue,
$8,796,086
EBITDA,
$4,616,514
EBITDA,
Year 1$(125,865) Year 2
Revenue EBITDA
By the end of Year Three, Emergency Alert Solutions is expected to be an attractive
acquisition target for the automotive industry, the automotive safety equipment or
electronic component supplier sector of the auto industry. During year one, the
Company will actively pursue licensing opportunities within the United States. The US
DOT mandate process is expected to be underway and the Company has already
conducted numerous tests to validate the efficacy of the technology it developed and
presently has available for industry wide use. Insurance carrier pressure to reduce
their expenditures for emergency vehicle related accidents and associated wake
accidents will benefit the Company’s effort to have its technology adopted for
implementation into new cars and all new and existing emergency and law
enforcement vehicles. Insurance carriers can offer premium discounts to owners of
vehicles with this technology installed. It is conceivable that the Company, if acquired
or if the technology is licensed, may retain the retrofit business portion of the
technology and continue to retrofit older private vehicles, existing emergency
vehicles, and rail systems with its life saving, injury reducing and economically
beneficial technology. The Company intends to retain the ETA severe weather
warning system portion of its patent pending technology as well as the recreational
products. The Company currently intends to retain its additional Highway
Construction Zone Cautionary device alert warning technology which is estimated to
generate approximately 50,000 transmission device sales per year with potential
revenue of $10 million.
During Year Two, the Company will begin a similar process within the EU to make its
technology available to all developed nations. Global mandate is enacted by the UN
and following U.S. mandate it is a highly likely probability and is expected to increase
revenue and profitability by a minimum factor of five.
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