Flux Drive OverviewSmartCOUPLINGs™‘Drop-in’ Solutions for Energy Savings ‘Right out of the Box’

1. Flux Drive Overview
SmartCOUPLINGs™
‘Drop-in’ Solutions for
Energy Savings
‘Right out of the Box’
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2. • Company overview
• The Problem - Excess
design margin &
Wasted Energy
• Flux Drive solutions
• Market size &
strategy
• Existing customers &
partners
• Financial details
• Funding Opportunity
& use of funds
AGENDA
2
Company Snapshot
What do we do?
Target Markets
Partners/Customers
Founded
Manufacture the World’s first
energy saving SmartCOUPLING™
for commercial and industrial
motor driven systems
Industrial and commercial
motor driven applications:
Waste Water, Oil &
Gas, Mining, Marine, HVAC, M
anufacturing
Veolia, Boeing, Weyerhaeuser, Si
mpson, Sierra Pacific Industries
Value proposition •Energy Savings
•Reduced maintenance
•Increased reliability
Employees
Headquarters
2007 (first product)
15
Kent, WA
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3. 3
THEPROBLEM
• Excess Capacity Margin (ECM) - built into
all motor systems
– Design Engineers have to oversize systems for
future demand and provide a safety factor
– All Systems run with ECM, wasting energy
– Matching flow to the actual system demand
required - saves energy and reduces maintenance
• Hard starting of all coupled systems is
much less reliable
– Vibration from standard coupling misalignment
destroys bearings and seals
– Excessive system flow rates result in wear & tear
– Start-ups put shock on equipment and create
high power spikes & higher operating costs
• Existing solutions DON’T target the
Major Problem – Wasted Energy!
Wasted Energy! In Motor Driven Systems
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4. 4
THESOLUTION
The Flux Drive SmartCOUPLING™: Benefits
• Energy savings!
– SmartPOWER™, Air gap spacers
reduce load speed to provide
SmartPOWER™ savings
– Soft-start feature also reduces
kW demand and charges
• Maintenance savings!
– No touching parts
– Misalignment & vibration
corrected for long seal and
bearing life
– Operates in any environment
• Never Wears Out! Parallel Misalignment Angular Misalignment
Air gap
shown in
red
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5. Gap 1 Gap 2
– Energy Saving Feature
by Adjusting Air Gap
(‘SmartPOWER’
reduction)
– Benefits from Affinity Laws on
centrifugal loads
• 5% less speed = 10% less power
• 10% less speed = 20% less power
– Load speed is adjusted to actual
demand required
SAVESENERGY
Energy
Savings!
The Flux Drive SmartCOUPLING: SmartPOWER™
Save Energy!
GAP 1 = 10% Savings
GAP 2 = 20% Savings

6. 6
• Accommodate
s Thermal
Growth
• Accepts
compound
Shaft
Misalignment
• Permits
Angular
Misalignment
based on
Coupling Size
• And NO
SavesMaintenance
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7. 7
THESOLUTION
The Flux Drive Adjustable Speed Drive (ASD)
• Variable speed for maximum energy savings
– Dynamic speed adjustment for automated control
– Superior to electronic speed control devices
– Works with any motor and in any environment
(hot, dirty, corrosive, etc.)
– Not susceptible to power quality problems
– No harmful electrical side effects - harmonics
– Decades of useful life with minimal maintenance
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8. Company Milestones:
– 2007: Flux Drive – Product Ready, First Sales
– 2008-2012: Initial markets cultivated, ASD product launched &
refined with proven product acceptance
– 2012 Product Certification Attained, American Bureau of Shipping
• Completed Phase 1 of US Navy contract
– 2013: ASD scaled to 300hp, SmartCOUPLING™ released to 125hp
– 2014: Marketing launch and scaling of SmartCOUPLING™ to
500hp
• Phase 2 Navy contract award projected in Q4, 2014
Patents:
– 11 patents in portfolio with applications in over 35 countries
– Issued patents in USA, Canada, Mexico, South Korea,
Singapore, Australia & New Zealand
COMPANY
8
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9. COMPANY
9
Team:
– Philip ‘Chip’ Corbin, CEO: Inventor & primary
patent holder. 30+ years experience with
rotating equipment & mechanical design
– John Watson, President: 35+ years executive
level experience with proven ability to achieve
revenue growth & profitability
– Libby Dunkin, COO: 30 years product
development experience in high growth
companies
– Matt Carlson, VP Sales/Marketing: 25 years tech
& clean-tech marketing experience including
energy efficient products/services
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10. 10
THEMARKET Market Size
• $29 billion combined existing global market for couplings and ASDs
• $90 billion addressable market for speed control/energy savings on
existing pumps and other equipment
• Flux Drive products address 90% of the 12 million U.S., and 62 million
global motor systems
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11. 11
THEMARKET
Market Dynamics: “90/90/10” Value Proposition
• 90% of typical plant’s pumps, fans and blowers have Excess Capacity
Margin (ECM) for <2 year payback with a SmartCOUPLING™
• 90% of those systems will never need an upgrade to full auto control
• 10% load speed reduction - creates 20% energy reduction
Growth Strategy:
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12. 2014 Marketing
MARKETING
• Veolia Case Study (written by Veolia staff)–
May “Pumps & Systems” publication
• 3 published case studies – brand approval
received from Veolia, Kolon, and Sierra Pacific
• Advertising: 100,000+ impressions
in April/May
− Modern Pumping Today – Full Page,Page 1
− Pumps & Systems: 2/3 page
− Upstream Pumping: 1/3 page
• Ongoing advertising June-August
• Tradeshows
− Navy, Oil & Gas, Forest Products
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13. 2014 Product Expansion
MARKETING
13
• FSC-BP Belt Pulley Version – Spring 2014
• FSC-5 (250hp) release – Summer 2014
• FSC-6 (500hp) release – December 2014
• Additional ASD Development for NAVY
Market
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14. 14
COMPETITION Competition only provides adjustable speed or
maintenance benefit – not both!
Electronic VFD
“Flexible” Couplings
– Electronic solutions:
• More complex and less reliable
• Create damaging side effects
• Won’t survive in many environments
• Expensive overkill for fixed speed control
• NO MAINTENANCE SAVINGS
– Flexible Coupling solutions: Waste Energy
• Alignment critical – cause of excess vibration & wear
• Contain wearable elements - ongoing cost
• Don’t protect against load seizure or hard-start
• NO ENERGY SAVINGS or SPEED Adjustment
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15. U.S. Distribution Partners
TRACTION
15
International and Vertical Market
Distribution Partners
Oil & Gas:
Military/Marine:
Mexico/Latin Am:
Canada:
SE Asia:South Korea:
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16. TRACTION
16
Flux Drive Customers
Sierra Pacific
Industries
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17. Customer Installations
TRACTION
17
100hp – Hot Oil Pump
50hp Dye Pump
200hp Water Pump
50 hp Cooling
Tower Fan
The SmartCOUPLING™ ASD (IntelligentCOUPLING)
50hp water pump 200hp Induced Draft Fan
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18. 18
FINANCIALS
Financial Details
Projected financial performance for North and South America
• Based upon adequate and timely access to growth funding in
Q2 2014.
• Additional revenue from international growth provided upon
request
For financial details, please login to
Crowdfunder using your accredited
investor account
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19. 19
FINANCIALS
Current Round
Use of Funds:
• Expanded sales/marketing effort
• Accelerated product fulfillment capabilities
Securities: Series C Preferred Stock
Valuation of the Company: $6,000,000 pre-money
Amount of offering: Up to $4,000,000
Consideration: Cash
Number of shares: 12,472,715 shares
Price per share: 0.3207
Investors: Accredited investors acceptable to the Company.
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20. 20
Thank You
Contact:
Philip ‘Chip’ Corbin, CEO
ccorbin@fluxdrive.com
253-826-9002, Ext. 707
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21. 21
THESOLUTION
The Flux Drive SmartCOUPLING (FSC): How It Works
– ‘Drop-In’, replacement for ‘Old’ Couplings
• Permanent magnets mount on load shaft
• Induction rotor mounts to motor
• No touching parts (red area shows air gap)
– Motor – provides input torque / power
• Current induced from permanent magnet
flux into induction rotor
• Induction rotor becomes an induced magnet
• Induction rotor then couples / rotates with
permanent magnet rotor
• Result – Motor Torque is transmitted to load
– SmartPOWER™ - Air gap spacers
• Install to decrease magnetic coupling effect
• Allow load (pumps & fans) to rotate slower –
thereby Saving Energy!
Save Energy!