1. IonExpress
Shiva Portonovo (EL)
Jason Poulos (M)
Jacob Schmidt (PI)

2. Reprod.
Beta Assay dev L Pharma
Inst. mfrs. Fast
Feedback
Install/demo S/M Pharma
Cells Winning Low cost
KOLs Service Govt ctrs
Easy to use
Direct, partn
new targets er CROs/ Univ
IP, cells
Labs
Inj. mold Direct
low run cost
Distributors
Low cost
One Time Recurring Recurring
Inj. mold Instrument Consum. Maint
Inst.
assembly One Time Recurring Recurring
warranty Software Train.

3. Who we have talked to
• Alan Wickenden, J&J
• Injection mold prototype companies
• Robert Damoiseaux, CNSI UCLA
• John Comley, IC screening market expert
• Competitors’ websites

4. Revenue Model
• Instrument and consumable are sold directly
to customer
– Instrument uses conventional direct sales force
– Consumables are sold direct over the web
– As done by our APC competitors
Screening
IonExpress
Customer

5. Product Offerings
• Group instrumentation and consumables by
capacity and function
– 48 channel system (“Best Value”)
• Instrument
• Plates
– 192 channel system (“Highest throughput”)
• Instrument
• Plates
– High speed solution perfusion system (“High
performance”)
• Instrument
• Plates

6. Our Pricing
• Group instrumentation and consumables by
capacity and function (pricing for adoption)
– 48 channel system (“Best Value”)
• Instrument- $200k (Fluxion: $250k)
• Plates- $50 (Fluxion: $150)
– 192 channel system (“Highest throughput”)
• Instrument- $500k (Barracuda 384: $750k-$1M)
• Plates- $125 (Barracuda 384: $250-$300)
– High speed solution perfusion system (“High
performance”)
• Instrument (48 chan)- $300k (N/A)
• Plates- $100

7. Instrumentation and Plates
• Instrumentation components are mostly off the shelf
OEM equipment
– 96 channel Fluid handler $36k
– Multichannel amplifier $50k/48 channels
– Robotic arm $20k
– Software???
• Plates: 3 pieces
– Injection mold top and bottom pieces
• Until we get to high volume, materials costs are not the dominant
costs– they are tooling and mold operation
– Center film is laser cut and sandwiched between top and
bottom pieces
• In house?

8. COGS and Operating Cost
Bottom Up Estimate (conservative)
• Instrumentation - $135k/instrument
– $120k Components/materials
– $10k Labor
– $5k(?) Operations (how does this scale?)
• Plate - $5/plate
– <$1 materials
– $2 Labor (assembly)
– $2(?) Operations (how does this scale?)

9. Customer Usage
Customer Segment and Plate Usage
Equiv #
<Sites/ <Labs/ <Screens/ <DP/
Entities Total labs 48 well
entity> site> yr/lab> screen>
Plates/yr
L Pharma 20 3.5 4 280 6.7 20k 782000
M/S
500 1.25 1.5 938 4.1 10k 801000
Pharma
Govt/
50 1 1 50 4.0 10k 42000
Acad

10. Adoption and Sales
Estimated Adoption by Customer Segment
Year % L Pharma % M/S Pharma % Govt/Acad
1 0% 0% 5%
2 0% 1% 10%
3 1% 2% 10%
4 2% 5% 10%
5 5% 10% 10%
Estimated Sales
Users and
Year # Plates
Instruments
1 3 2000
2 14 12000
3 27 28000
4 58 60000
5 113 123000

11. Income Statement
Year 1 2 3 4 5
Revenue ($M) 0.6 3.0 3.8 9.2 17.2
COGS + Ops.
0.3 1.7 1.8 4.5 8.1
($M)
Profit ($M) 0.3 1.3 2.1 4.7 9.1
20 • 1st $100k/mo
revenue happens in
15 Year 2
• 1st $1M/mo revenue
$M
10 Revenue ($M)
happens in Year 5
COGS ($M)
5 Profits ($M)
0
1 2 3 4 5
Year

12. Customer Lifetime Value
• Instrument
– One time initial purchase ($200k)
– To increase capacity/throughput, small number of
additional purchases possible ($200k+)
• Consumable
– Recurring purchases: ~ 2800 plates/yr for each lab in
big pharma ($140k/yr)
• Lifetime revenue value:
– Instrument: $200k in Year 1 + $200k in Year 4
– Plates: $140k/yr Years 1-3 and $280k/year Years 4-10
= ~$2.25M discounted at 5%/yr