2. Table of Contents
Executive Summary…………………………………………………………………………………...1
Company Background and Opportunity Summary………………………………………………..2
Marketing Plan…………………………………………………………………………………………6
Product and Services…………………………………………………………………………………9
Operational Plan……………………………………………………………………………………..10
Team…………………………………………………………………………………………………..12
Financial Plan………………………………………………………………………………………...14
Sources of Funding………………………………………………………………………………….16
Appendix….…………………………………………………………………………………………..17
References……………………………………………………………………………………………20
3. Executive Summary
EarthCap is a company that utilizes micro and nanoencapsulation technology to create products
beneficial to the health and safety of mankind and the environment. EarthCap has designed a
novel explosive bioremediation method, as well as two different controlled release drug systems
utilizing nanotechnology.
The first product in mind for EarthCap is EcoX technology, upon which this business plan is
based around. This particular product is able to efficiently degrade almost all explosive
compounds. EcoX has been developed to degrade the three most common explosive
contaminants in TNT, RDX and HMX. To this day, there is no established, efficient method for
remediating explosive contaminants from soil and groundwater. The two most common
conventional methods are incineration and composting. Not only are these two methods
expensive and are required to be performed off site, they cannot be applied to remediation of
groundwater. Explosives such as TNT, RDX and HMX are toxic to mammals and have great
potential to harm ecosystems.
There are over 50 million acres of explosive contaminated land in the United States alone, with
thousands of contaminated sites. There are much more to be found in Canada, Europe and
Asia. What EcoX provides is an efficient, on site explosive remediation method that can be
applied to remediation of both soil and groundwater. Based on the convenience and unmatched
efficiency of this method of explosive remediation, there is great opportunity for large
multimillion dollar contracts from the government or explosive, mining and/or construction
companies. With competitive pricing compared to conventional methods, EarthCap has the
potential to amass millions of dollars in sales for a single contaminated site.
EarthCap believes that EcoX will dominate the market in regards to explosive remediation
strategies, and due to its effectiveness and environmental implications will attract immediate
attention from investors and the addressable market. EcoX could result in several multimillion
dollar contracts from Canadian or American Government and/or explosive manufacturing,
construction and mining companies.
4. Company Background and Opportunity Summary
Mission Statement
EarthCap utilizes nano and microencapsulation technologies to provide innovative and green
solutions for a healthier world. In response to the growing concern of explosive contamination in
the environment, EarthCap looks to provide a cost-efficient and environmentally friendly method
to effectively remove explosive compounds from soil and groundwater in situ. It does not end
here for EarthCap, a variety of encapsulated pharmaceutical products have already been
designed to preserve and enhance human health.
Value Proposition
Initially EarthCap will provide an all-in-one solution for remediating explosive contaminated land
and groundwater that is both cost-effective and environmentally friendly. In the future, EarthCap
looks to utilize micro and nanoencapsulation technology to produce products that preserve the
health and safety of mankind and the environment.
The Problem
There are roughly 50 million acres of explosive contaminated land in North America alone. Even
more can be found in Europe and Asia. Such land cannot be used for farming or human
settlement until fully remediated. Explosive compounds are able to enter soil and groundwater in
ammunition production facilities, packing and warehouse facilities, waste disposal and
destruction facilities, burn pits and incinerators, and weapons firing ranges. Thousands of
military sites in the United States are currently being contaminated by explosive compounds.
Conventional methods such as incineration and composting are ineffective, expensive and
cannot be performed on site. Explosives such as TNT, RDX and HMX (2,4,6-Trinitrotoluene,
1,3,5-Trinitroperhydro-1,3,5-triazine, and Octahydro-1,3,5,7-tetranitro-1,3,5,7-tetrazocine) do not
degrade readily in the environment and are toxic to mammals (O’Keefe, Phytoremediation of
Explosives using Transgenic Plants).
The Solution
One of the most promising methods for remediating explosive compounds is phytoremediation
using transgenic plants. This particular method has been studied for over 15 years, and is being
weighed down heavily by strict regulations. Phytoremediation using transgenic plants has still
not been tested in the field to this day. EarthCap looks to provide an effective solution to this
5. problem by using a mixture of microencapsulated and free microorganisms (S. cerivisiae, R.,
rhodochrous, and P. chrysosporium) as a bioremediation strategy. Initial development of this
idea was spawned from research on phytormediation of explosives using transgenic plants.
Genes found in these organisms are targeted for use in the development of explosive degrading
transgenic plants. Microencapsulated cells have a reduced adaption period, but after this
adaption period free cells have accelerated degradation (1). This is why EcoX utilizes a mixture
of free and encapsulated cells in an alginate matrix. These microorganisms have been chosen
due to their exceptional capability to degrade explosive compounds. EcoX will degrade almost
every explosive compound including the most common contaminants in TNT, RDX and HMX.
Business Model
Figure 1. EarthCap Business Model regarding EcoX technology.
INFRASTRUCTURE CUSTOMER
OFFER
FINANCE
Core Capabilities
-EcoX:All-in-one explosive
degradingproduct(TNT,RDX,HMX
specifically)
- Consultationwith customersto
meettheirneeds
- Instructionsandassistance for
applicationof EcoX in soil and
groundwater
Partnership
- Microencapsulation of organisms
providedbyEncapsys
Value Configuration
- Sale of EcoX to customersas well
asconsulation to meetany unique
requirements
-Pricedpertonof soil neededtobe
remediated
-Remediationof groundwater
requiresconsultation
CustomerRelationship
- Direct supply of EcoX
- Endorsementof EcoXby large
explosive manufacturing
organizations
-Consulationforremediationof
groundwaterandany unique
requirements
DistributionChannel
- Veryspecificmarket
-Sale of EcoX to military, private
weaponsmanufacturers, aswellas
constructionandmining companies
-Approachingorganizationssuchas
CEAECand Institute of Makersof
Explosivesforendorsementof EcoX
-Governmentcontracts
TargetCustomers
- Canadian andAmericanmilitary
-Weapon'smanufacturerssuchas
DynoNobel,GeneralDynamics,
Orica,etc.
-Endorsementof EcoXbyCEAEC
andInstitute of Makersof
Explosives
-Construction/miningcompanies
-USandCanadian Government
Value Proposition
- EarthCap andEcoX provide an all-
in-one solutionforremediating
explosive contaminatedlandand
groundwaterthatisboth cost-
effective andenvironmentally
friendly.
CostStructure
- Energy and gas requiredto
culture massamountof organisms
-Downstreamprocessingand
purificationof organisms
-Excessive waste treatment
-Determinationof purityand
qualityassurance/qualitycontrol
Revenue Stream
- Salesof EcoX (pricedperton of
soil remediated)
-Quotesfortotalremediationof soil
andgroundwater
-Consultationforgroundwater
remediationandunique
requirements
6. Technology
With EcoX, EarthCap utilizes three different explosive degrading microorganisms; S. cerevisiae
(targeted for TNT degradation), R. Rhodochrous (targeted for RDX degradation), and P.
Chrysosporium (targeted for HMX degradation). All three are extremely safe organisms
(Biosafety Level 1) and degrade several different explosive compounds each. Each unit of EcoX
contains portions of microencapsulated and free microorganisms. The reason for this is that
microencapsulated cells have a reduced adaption period, but after this adaption period free cells
have accelerated degradation.
The microencapsulated cells will be immobilized using an alginate matrix cross-linked linked
with divalent cation bridges (calcium). The calcium will slowly solubilize in the alginate matrix
and from cross links which encapsulate the bacteria (2). The adaption is expected to reduce the
ionic stress in bacteria, which will increase the encapsulation efficiencies as well as creating
higher cell viability with long term storage (2). This ultimately lowers the cost for bioremediation.
By optimizing the environmental conditions during microencapsulation, explosive degradation
and cell viability will be enhanced. This will result in fewer microcapsules needed per volume of
treated material and significantly lower the overall treatment cost.
The main advantage of this product is that it degrades explosives in situ, saving costs on
excavation, transportation and storage of contaminated soil. Not only that, EcoX can also be
used simultaneously for soil and groundwater remediation unlike conventional methods of
incineration and composting. As soon as proof of concept research has been completed a
patent will be filed for EcoX technology.
Marketing Plan
Figure 2. This table depicts the competitive analysis of EcoX compared to conventional
methods of explosive remediation.
Capabilities Incineration Composting EcoX
On-site capability No No Yes
Full removal and degradation No No Yes
Able to remediate groundwater No No Yes
Toxic Byproducts Yes Unknown No
Requires fossil fuels Yes Yes No
Additional treatment needed Yes Yes No
Cost $800 per ton soil $300 per ton soil $500 per ton soil
Methods of Explosive Remediation
7. Explosive levels in the environment have reached a point where there is potential to cause
significant harm to humans, wildlife, and ecosystems. This contamination is largely due to poor
management, improper disposal and lack of suitable remediation methods. Processes such as
incineration, composting and soil slurry bioremediation are inadequate, costly, cannot be
completed on site, do not fully remove all toxic components and are health hazards. For
example, explosives such as TNT and RDX can cause excessive liver damage, or vomiting and
convulsions respectively. (O’Keefe, Phytoremediation of Explosives using Transgenic Plants).
Incineration and composting are two of the most commonly used methods for disposing of
explosive contaminated soil. With incineration, soil is removed from the site to be incinerated.
Unfortunately, complete combustion rarely occurs and the resulting explosive residues require
further treatment or disposal). When complete combustion does occur, harmful compounds are
still created in the process (nitrous oxides, carbon monoxide, hydrogen chloride, and possibly
dioxins). Furthermore, this method is very expensive as each ton of soil costs roughly $800 to
be remediated. Composting is another process used to remediate explosives. Composting
utilizes microorganisms to degrade explosive contaminants. RDX and TNT levels decrease
significantly using composting, particularly in thermophilic conditions (55°C). Many degradation
products bind to the soil and become unextractable, resulting in incomplete remediation. The
bacteria responsible for degrading and the metabolites are hard to identify, as indigenous
bacteria will vary from site to site, with different explosive degradation pathways (O’Keefe,
Phytoremediation of Explosives using Transgenic Plants).
It is obvious that there is a lack of a fully effective and on site remediation strategy for degrading
explosive compounds, which is exactly what EarthCap is hoping to achieve with EcoX
technology. Because EcoX is much more efficient than the conventional methods used today, it
should attract a lot of attention for any organization that needs an explosive remediation
strategy for soil and groundwater.
Although explosive remediation is a niche market, the available market is still quite large for
EcoX technology. There are thousands of explosive contaminated sites in the United States
alone, with hundreds more in Canada and much more in Europe and Asia. Due to the fact there
are 50 million acres of explosive contaminated land in the United States only, and there is no
current established in situ method of remediation, the market potential for EarthCap and EcoX is
huge.
8. After proof of concept research and waiting for a pending patent application, EarthCap will be
ready to approach potential customers for contracts and orders of EcoX. The addressable
market will be explosive manufacturing companies and the American and Canadian
government. American companies include Dyno Nobel, GD-OTS, General Dynamics, Grypian
Engineering, Kitikmeot Blasting Services, MREL, Orica, Proparms and more. American
companies include Dyno Nobel, Orica USA, TerraTek, Accurate Engine, General Dynamics,
GEODynamics and more. Abandoned explosive manufacturing sites, take Joliet Army
Ammunition Plant (manufactured explosives for World War II) for example, may need to be fully
remediated in order to repurpose the land for new businesses or other commercial purposes. A
Canadian or American government contract for remediation of a site as large as Joliet (which
has over 130,000 square yards of explosive contaminated land) could yield almost a $100
million dollars in sales of EcoX (more details on this estimate seen in product specifications)
(3).Other targets include construction and mining companies who commonly use TNT and other
explosives in their practices.
Government contracts would have the potential to allow EarthCap to greatly increase the scale
at which we manufacture EcoX, based on the previous estimate for the Joliet Army Ammunition
Plant. If no such arrangement can be reached, then EarthCap should still remain viable from
selling units alone along with consultation for groundwater remediation and customer
specifications. Because of the amount of land needed to be remediated worldwide, and taking
into consideration EcoX would be the most efficient method, the limiting factor of sales is the
output of EcoX product produced by EarthCap. The addressable market will be contacted
personally by EarthCap itself as well as its Board of Investors. More details can be found in the
financial and budget sections. In addition, a government contract for remediation of
contaminated land of Garrison Petawawa, the largest military base in Canada located in Ottawa,
is a main goal for EarthCap.
By the time proof of concept research is finished EarthCap will have established a website
(earthcap.com) advertising sale and consultation regarding EcoX and EarthCap. EcoX will be
for $500 per unit, which contain 10kg of cells. Consultation for groundwater remediation and
customer specifications will be negotiated during the consultation process.
9. Product and Services
Product Specifications
EcoX will be sold in plastic pails containing 10kg (22 lbs.) of freeze dried cells. Taking into
consideration that RDX is the most recalcitrant explosive, it is the limiting factor of EcoX’s
explosive degradation rate. Studies found that R. Rhodochrous is able to degrade RDX at 33
nmol/min./g of cells (4). This equates to 10kg of cells in EcoX being able to fully remediate one
ton of soil in 181 (based on explosive contaminants being 20% w/w). Each pail of EcoX will cost
$500. EarthCap guarantees at least 95% cell viability after microencapsulation. EarthCap also
guarantees full removal of explosive contaminants from soil and groundwater.
Process Flow Charts
Figure 3. Process flow chart depicting the overall strategy for production of EcoX.
Figure 4. Process flow chart of upstream processing for production of EcoX.
Figure 5. Process flow chart of downstream processing for production of EcoX.
Utilities (water, heat, gas, electricity, internet)
Solvents, centrifugation
Nutrients, media, buffer
S. cerevisiae Purified S. cerevisiae Cell
R. rhodochrous and R. rhodochrous Encapsulation
P.chrysosporium and P. chrysosporium by Encapsys
Packaging, storage, transportation
(Freeze dying)
Labor Labor
(Head/Ass. Lab Technician) (Head/Ass. Lab Technician)
Waste (Manufacturing Engineer (QA)) Waste
Bioreactor(Fermentation)
Downstream
Processing
(MicrobialPurification)
Biomass and Waste
Products/Media
Centrifuge toseparate
biomass
Freeze dryingandstorage
of cells
10. *EcoX is a novel idea developed by CEO Greg O’Keefe and the process used to develop EcoX
does not infringe on any intellectual property.
Future Directions
In order to avoid stagnancy and to expand EarthCap’s market, future products have already
been designed by CEO Greg O’Keefe. EarthCap’s goal is to utilize micro and
nanoencapsulation technology to produce products that will improve the health of both mankind
and the environment. The next two ideas in development are nanoencapsulated drugs for
controlled release. One drug system utilizes naloxone and provides a controlled and/or
activated release of the drug in order to mitigate the effects of opioids in abusers. A similar
controlled release drug system involves specific cytochrome p450 enzyme inhibitors and
activators (cytochrome enzymes are responsible for over 90% of drug metabolism) in order to
make certain drugs appropriate for use in certain susceptible individuals (people who are very
sensitive or insensitive to certain drugs)
Operational Plan
EarthCap will be run as a sole proprietorship by the President and CEO of EarthCap, Greg
O’Keefe. Mr. O’Keefe owns the company and takes responsibility for any debts. The production
of EcoX including upstream processing, fermentation, downstream processing and freeze-
drying will be done by EarthCap employees. The microencapsulation of cells in the alginate
matrix will be completed by Encapsys. Encapsys is chosen as a partnership as the staff of
EarthCap is not experts on the microencapsulation process. Fortunately, Encapsys are
microencapsulation pioneers in business for over 50 years with over 74 patents issued. The
company is also open to innovation and look to collaborate with their customers, which is
exactly what EarthCap is looking for.
EarthCap looks to utilize the Stiller Centre for the first two years of operation. The first year of
operation will be needed for proof of concept and laboratory research. The second year of
operation will be used to conduct field studies and contaminated land sites (locations provided
using Chief Scientist of Defense R and D Canada/Investor David Pederson). After the proof of
concept research has been finished and the patent application submitted, EarthCap will look to
utilize a multimillion dollar contract with either/or the Canadian and American Military, and/or
explosive manufacturing, construction and mining companies. If a large contract is reached prior
to the completion of the second year of operation, a 5000 square foot single floor building will be
11. built in Ottawa or Kingston, Ontario. This is located near Penawawa, the largest military site in
Canada and would be an advantageous spot for EarthCap to conduct business. The Stiller
Centre is a one-of-a-kind biotechnology incubator located in London, Ontario. Rent is very
affordable, $1000/month for a 2,400 square foot lab, and provides tenants with hundreds of
thousands of dollars in accessible equipment including glassware, autoclaves, fridges and
centrifuges.
Figure 6. Floor plan for laboratory space in Stiller Centre. The same laboratory floor plan will be
maintained at a new facility developed in Ottawa or Kingston, merely surrounded on the south
and eastern sides by around 2,500 square feet of office and storage space.
*Explosives will be stored separately from one another in locked cabinets as advised (5).
12. Team
Greg O’Keefe – Chief Executive Officer (CEO)/ President/ Lab Assistant
Mr. O’Keefe graduated from Fanshawe College in 2015 with a Bachelor’s Degree in Applied
Technology – Biotechnology. He is the founder and top ranking employee of EarthCap, working
full time for the company. Together with the Board of Directors, Mr. O’Keefe is responsible for
the direction and vision of EarthCap. He is ultimately responsible for the legal compliance,
mission, policy, planning, management/administration, governance, financing and community
relations of EarthCap. In his spare time, Mr. O’Keefe will assist in the lab overseeing the
development of his products and vision.
Mantis Toboggan – Project Manager
Mr. Toboggan graduated with a Bachelor’s Degree in Science Construction Project
Management at the Southern Alberta Institute of Technology in 2005. He has almost 10 years of
experience in project management working for Monsanto and Cargill before becoming a full-
time EarthCap employee. In regards to EarthCap, Mr. Reynolds is responsible for project
design, planning, scheduling, management of employees and contractors, management of
equipment and materials, as well as overseeing finance and budgeting.
Dennis Reynolds – Head Lab Technician
Mr. Reynolds graduated from Fanshawe College in 2007 with a Bachelor’s Degree in Applied
Technology – Biotechnology before immediately pursuing a Ph. D. in Molecular Biology and
Genetics at the University of Guelph, which he successfully received in 2013. He worked in
research and development at Monsanto before joining the EarthCap team full time. He is
responsible for the planning, development and testing of the EcoX, as well as overseeing the
day-to-day laboratory activities. Mr. Reynolds also assists with the large-scale production and
quality assurance of the EcoX.
Charlie Kelly – Assistant Lab Technician
Mr. Kelly graduated from Fanshawe College in 2008 with a Bachelor’s Degree in Applied
Technology – Biotechnology. Afterwards, he pursued a Master’s Degree in Molecular Biology at
the University of Guelph, which he received in 2012. Before joining EarthCap, he worked for
Pfizer. Along with the Head Lab Technician, he is responsible for the development and testing
of our novel EcoX. Mr. Kelly also assists with the large-scale production of the EcoX.
13. Mac McDonald – Manufacturing Engineer/Lab Technician/ Quality Assurance Coordinator
Mr. McDonald graduated from Guelph University with a Bachelor’s Degree in Biological
Engineering in 2005. In 2013, he received a Ph. D. in Production and Quality Engineering at
NTNU. After working for Cargill for almost 2 years, he joined the EarthCap team full time in late
2015. He is responsible for the design, scale-up and implementation of the manufacturing and
production of EcoX. This includes bioreactor and fermentation design and optimization, as well
as downstream processing. He is also in charge of quality assurance.
Future Hires
This previously described core team will all be present for the first two years of operation (proof
of concept/laboratory research and field studies). However, if a large contract is achieved then
more lab technicians as well as field technicians (responsible for groundwater remediation) will
need to be hired by the end of the second year. However, the budget analysis provided later on
only takes into account units of EcoX being sold and does not take into consideration any
consultation or groundwater remediation services.
Board of Directors
David Pederson - Chief Scientist of Defense R and D Canada
Robert Mullen – Guelph University Research Chair
Kevin O’Leary – Founder of SoftKey, investor, and venture capitalist
Brian Pearson – President/CEO of LoyaltyOne/ AIR MILES
Contractors
Encapsys – Provide microencapsulation of microorganisms for EcoX.
Cassels Brock Lawyers – Advice on regulatory compliance and market access issues including
labeling, package inserts, audit procedures, etc. as well as financial services.
Statefarm – Renters Insurance
Stiller Centre – Laboratory Space
14. Milestones
Figure 7. Gantt chart of summary of milestones and deliverables.
As previously mentioned, between the time of finishing proof of concept research and submitting
the patent application to finishing field research a large multimillion dollar contract with the
government or company(s) in the addressable market is hoped to be achieved. However, taking
into account this does not happen, future income and revenue statements are based solely on
selling EcoX products at max output on a quarterly basis (without taking into consideration price
of consultation and groundwater remediation). This is done in order to present a bottom line to
the investors in terms of revenue production.
*A detailed Work Breakdown Structure chart can be found in the appendix.
Financial Plan
Figure 8. Summary of the expenses for the first 30 days.
Task May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18
Equipment Purchase/set-up
Experiment Design
Establish Contractors/Partnership
Proof of Concept/Initial Research
Lab Studies
Patent Application/Approval
Field Studies
Scale-up Studies
Establish Business Contract
Optimization
Expand Business (New Products)
Total expenses summary - 30 day calculation
Total Materials $3,504.60
Total Waste $9,333
Total Labor $74,166.67
Overhead expenses Multiplier Description Multiplier
Total Utilities $27,367.23
Royalties - -
Operating supplies 10% of labor 0.10 $7,416.67
Property Tax - -
Maintenance/Repair 10% of DFC 0.10 $53,759.48
Insurance 1% of DFC 0.01 $5,375.95
Total Expenses- first 30 days $180,923.92
Direct Fixed Capital $537,594.75
15. Figure 9. Summary of quarterly expenses after two years of initial research.
*Researchers were able to produce 15g/L yeast biomass in 12 hours (7). Based on this, it was
calculated that EarthCap can produce and sell126 10kg pails per week.
Figure 10. Summary of cash flow per quarter with sale of EcoX.
Figure 11. Summary of income statement for first yea or production and sale of EcoX.
*More detail on how these numbers derived and how they were configured can be found in the
attached spreadsheets.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Total materials $10,513.80 $1,051.38 $1,051.38 $1,051.38 $10,512.00 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38
Total utilities $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04
Total waste $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00
Total labour $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00
Operating supplies $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00
QA/QC $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00
Microencapsulation $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00
Maintenance and repair $53,759.00 - - - $53,759.00 - - - $53,759.00 - - -
Insurance $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128
Total $532,662.68 $469,441.26 $469,441.26 $469,441.26 $532,660.88 $469,441.26 $469,441.26 $469,441.26 $523,200.26 $469,441.26 $469,441.26 $469,441.26
2017 2018 2019
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Total materials $10,513.80 $1,051.38 $1,051.38 $1,051.38 $10,512.00 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38 $1,051.38
Total utilities $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04 $46,012.04
Total waste $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00 $28,000.00
Total labour $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00 $222,500.00
Operating supplies $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00 $22,250.00
QA/QC $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00
Microencapsulation $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00 $66,750.00
Maintenance and repair $53,759.00 - - - $53,759.00 - - - $53,759.00 - - -
Insurance $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128 $16,128
Total Expenses $532,662.68 $469,441.26 $469,441.26 $469,441.26 $532,660.88 $469,441.26 $469,441.26 $469,441.26 $523,200.26 $469,441.26 $469,441.26 $469,441.26
Total Sales $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000 $756,000
Net Profit $223,337.32 $286,558.74 $286,558.74 $286,558.74 $223,339.12 $286,558.74 $286,558.74 $286,558.74 $232,799.74 $286,558.74 $286,558.74 $286,558.74
2017 2018 2019
Net Sales $3,024,000.00
Operating Expenses
Labor $890,000.00
Utilities $184,048.14
Waste $112,000.00
Insurance $64,511.37
Materials $42,055.20
Maintenance/Repair $215,036.00
QA/QC $267,000.00
Microencapsulation $267,000.00
Rent $12,000.00
Operating supplies $89,000.00
Total Operating Expenses $2,142,650.71
Net Operating Profit $881,349.29
Income Tax (13.16%) $115,985.57
Net Profit $765,363.72
16. Sources of Funding
EarthCap has received an initial investment of $1,000,000. This is enough money for EarthCap
to purchase their direct fixed capital and perform proof of concept research for at least several
months afterwards. Additional funding will be needed in order to complete field studies, further
optimization and scale up implementation as well as purchasing land and building a facility in or
near Ottawa or Kingston, Ontario (if a government contract is received, only then will latter will
be considered).
EarthCap is asking for an additional $1,000,000 in investment. This money will be used for
continuing to operate during field studies and for further optimization and scale up studies and
implementations. There is also a possibility of needing to purchase or build a new facility near
Kingston or Ottawa depending on if a large contract for EcoX is reached, as scale up will most
likely be necessary.
Sources for additional funding include Life Science Angel Investors (LSA), a premier angel
investment group solely focused on healthcare investing, specifically, medical devices,
molecular and other diagnostics, mHealth, and biotechnology and/or federal government
support. The Government of Canada places significant value on the life sciences, and has been
pursuing a number of initiatives to maintain and grow this thriving sector in the areas of
financing for small firms, research, commercialization of research, measures to encourage
investment attraction and intellectual property (8).
17. Appendix A
Detailed Work Breakdown Structure
Task Task Length/Due Date Responsible Employees
Purchase lab space Must be achieved before May
2015
CEO, Project Manager
Purchase of equipment 30 days CEO, Project Manager
Installation of equipment 14 days Manufacturing engineer, lab
technicians
Experiment design 30 days CEO, Project Manager, Head
Lab Technician
Proof of concept/lab research 1 year in total Everyone
Finalized Product
specifications
By end of year 1 CEO, Project Manager
Begin to market EcoX By end of year 2 CEO, Board of Directors
Field study experiment design 30 days CEO, Project Manager
Patent application/Approval 1 year total CEO
Field studies 1 year (finished by year 2) Everyone
Design of scale up 30 days CEO, Project Manager,
Manufacturing engineer, Head
lab technician
Implementation of scale up 6 months Everyone
Design of optimization 30 days CEO, Project Manager,
Manufacturing engineer, Head
lab technician
Implementation of
optimization
6 months Everyone
Design of new products Ongoing CEO
Implementing production of
new products
By end of year 5 Everyone
19. References
1. Moslemey, P., Neufeld, R., & Guiot, S. (2002, March 26). Biodegradation of Gasoline by
Gellan Gum-Encapsulated Bacterial Cells. Retrieved March 24, 2015.
2. Spargo, B. (n.d.). Encapsulated Bacteria for In-Situ PAH Bioremediation. Retrieved
February 17, 2015, from http://infohouse.p2ric.org/ref/37/36744.pdf
3. Pitchel, J. (2012, March 19). Distribution and Fate of Military Explosives and Propellants
in Soil: A Review. Hindawi. Retrieved October 21, 2014, from
http://www.hindawi.com/journals/aess/2012/617236/
4. http://seth-smith.org.uk/helena/cv/hssthesis.pdf (Seth-Smith HMB (2002) Microbial
degradation of RDX. PhD Dissertation, University of Cambridge)
5. http://www.safety.queensu.ca/safety/policy/eh&s/storage.pdf
6. http://www.reade.com/Particle_Briefings/spec_gra2.html
7. Vieira, É. D., da Graça Stupiello Andrietta, M., & Andrietta, S. R. (2013). Yeast biomass
production: a new approach in glucose-limited feeding strategy.Brazilian Journal of
Microbiology, 44(2), 551–558. doi:10.1590/S1517-83822013000200035
8. https://www.ic.gc.ca/eic/site/lsg-pdsv.nsf/eng/h_hn01725.html
