2. Consumer Marketing Copy for KSI’s Initial NutriCosmetic
Products: a Serum Concentrate, Facial Cleanser, Day
Moisturizer, Night Moisturizer, Eye Serum
2
3. NutriCosmetics Target Female Market Assumptions
Behind High AntiOxidant Product Sales Projections
Using Social Media like Pinterest/Home Shopping Network/HSN/and Distributor links such
as Sephora.com or Ulta.com:
Initial Target Market:
Women aged….30—65
Tgt. Population: 75,000,000
Tgt. Income, 5% of Population have $100,000+ Income
KSI Total Tgt: 3,750,000 Females
KSI Market Share: 5% or 187,500
Each purchase three KSI Products per year
spending an average $500 annually
3
4. Cosmetic Laboratories, Inc. Formula
for KSI’s Initial NutriCosmetics
Products Containing Both Kelp
Concentrate and High Purity Fucoidan
4
Assumed Pricing
Metrics
Serum $95
Day $90
Night $90
Cleanser $28
Eye $68
Avg. Unit Retail: $74.20
Avg. Unit Wholsale
$37.10
5. Cosmetic Laboratories and USFI
Team Up with KSI on
NutriCosmetics
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USFI Customers total over
2000 Globally and Awards
include:
The Communicator Awards
The Davey Awards
American Graphic Design
Awards
CUES Golden Mirror Awards
CUNA Diamond Awards
Texas Lone Star Awards
CL made all
the TruVia
(formerly
Solazyme
Products)
the Algenist
Line from
Micro Algae
sold on a
Alguronic
Acid claimed
discovery
6. The KSI Market Being Met
• Over all ages for women, men, and even pets, global interest in safe,
affordable, and better performing personal care, health, wellness,
beauty, anti-aging products has increased. The demand for premium
non-prescription, “FDA-Lite” consumer NutriCosmetic/cosmeceutical
type products and services to protect one’s personal health and beauty
levels ranging from “the best” attractive external skin products, with
safe formula ingredients, to fashionable clothing, to immune system
supplements is growing. Products in these segments total over $400
Billion in annual sales globally with the premium skin protecting
segments at $11 billion and growing at 20% per annum. The key new
element is KNOCEAN Sciences, Inc.’s novel and natural AntiOxidant
power products.
• Timing is ripe for KNOCEAN to create build a strong Company to tap
into the woman’s desire to use only the best of these higher skin
protecting new products with their own currently existing “avalanche”
of market acceptance of the positive power of quality AntiOxidants.
6
7. A Major Joint AntiOxidant Market
Opportunity Exists Through KSI
Exclusive and Proprietary Products
• No other Company in the world works with Kelp Oil®
(considered a waste product) or its compound, the new Kelp
Concentrate and KSI will dominate the commercial scale raw
material supply from the Macrocystis pyrifera high yield
sources, and with GRAS approval.
• No other Company has the over 90% purity Fucoidan
products much less with GRAS approvals.
• We plan to tap into this $11.5 billion retail market globally
with these proprietary KSI products and a new pipeline of
products in the future.
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8. KNOCEAN’s Raw Material Source for It’s
AntiOxidant Products is Giant Kelp, and its
patented process for Kelp Oil, Kelp Concentrate
and Fucoidan.
8
Dense Kelp Forest off Baja California
Giant Kelp off San DiegoKelp Concentrate
High Purity
Fucoidan
Kelp Oil
9. 9
KSI Harvesting/Processing of Kelp
and Kelp Oil into Kelp Concentrate
and High Purity Fucoidan
Full Scale High-Purity Fucoidan Production–KSI, Lakeshore Technologies, Marinova
Lab Scale Kelp Concentrate Production, Commercial Scale Testing-LCI/GEA Process Eng.
10. Giant Kelp (Macrocystis pyrifera) is a macroalgae, and these
algae’s are traditionally noted for their iodine capability,
and most often are studied in vitro for its Fucoidan, a
sulfated polysaccharide, until KNOCEAN discovered novel
diversified bioactive compounds in a Giant Kelp waste
product, Kelp Oil and called it Kelp Concentrate.
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Macroalgae—in our case Giant Kelp--have for centuries been consumed
whole among the East Asian populations of China, Korea, and Japan.
Macroalgae produce unique and interesting biologically active compounds.
Protein can account for up to 47% of the dry weight of macroalgae. They
contain all the essential amino acids, omega-3 lipids and soluble fiber as well
as a wide variety of bioactives including lipid-modulating blood pressure
lowering and glucose mechanism modifying compounds.
11. The Consumer Message: The Need to
Put AntiOxidants into a Safe, Non-toxic
Formula for NutriCosmetics
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The formation of free radicals is a widely accepted pivotal
mechanism leading to skin aging. Super Antioxidants are
substances that can provide health protection by scavenging
free radicals, in particular the major Five Free Radicals.
KNOCEAN ‘s Products as the Top AntiOxidant compound can
support neutralizing the imbalance of excess free radicals that
speed aging and create other illnesses beyond what the
current popular AntiOxidant ingredients provide. The
KNOCEAN product formulas will have safe non-toxic
ingredients blended into its high AntiOxidant compounds.
12. The Free Radical Theory of Aging and
AntiOxidant Defenses and Giant Kelp
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In its concern about the skin and internal bodily
functions, The Free Radical Theory of Aging
shows that despite bodily repair mechanisms,
oxidative damage builds up within our cells and
tissues. This internal damage in the short term
can lead to changes or losses in functional
components and cellular senescence and death.
The overall bodily processes of aging result
from these accumulated damages over time.
Taking Vitamins as antioxidants, ever larger
doses, and other claimed antioxidant sources
have been adopted remedies by consumers
since the late 1950’s to reinforce the body’s
own defenses against the Five Main Free
Radicals
13. Discovery of High AntiOxidant Power
in Giant Kelp and Kelp Compounds
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Certificate of Analysis: ORAC5.0
Results:
Test Result Units
Antioxidant power against peroxyl radicals 195 µmole TE/gram
Antioxidant power against hydroxyl radicals 828 µmole TE/gram
Antioxidant power against peroxynitrite 6 µmole TE/gram
Antioxidant power against super oxide anion 64 µmole TE/gram
Antioxidant power against singlet oxygen 652 µmole TE/gram
Total ORACFN (sum of above) 1,745* µmole TE/gram
* The acceptable precision of the ORAC assay is < 15% relative standard deviation. There are five
predominant reactive species found in the body: peroxyl radicals, hydroxyl radicals,
peroxynitrite, super oxide anion, and singlet oxygen. Total ORACFN/ORAC5.0 provides a measure of
the total antioxidant power of a food/nutrition product against the five predominant reactive
species. *1,745,000 per 100g.
Signed for and on behalf of Brunswick Laboratories
Authorized Signature
Boxin Ou, Ph.D.
14. Big Secret in the Nutrition World - Some 90% of
AntiOxidant Ingredient Content in Products are
Just small amounts of Vitamins
• Some vitamins are antioxidants but all vitamins
that are antioxidants are weak antioxidants.
• Some consumers take megadoses of Vitamin A, C,
E, and other berry extract products, and
“cocktails of extracts” to offset the low
antioxidant content of standard doses.
• Regulatory weakness is that if you include 30% of
the MDR of Vitamin C,A, E per serving then you
can use the “contains AntiOxidants” phrase on
your product packages
14
15. Kelp Concentrate - The Highest Natural Kelp
Based Marine AntiOxidant Power Versus Other
Low AntiOxidnt Ingredients Used in Cosmetics
*Oxygen Radical Absorption Capacity (ORAC) 5.0 is a method of measuring
antioxidant capacities in biological samples.
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20. KSI will Dominate Access to an Estimated 80% of
Highest Yield Kelp (Macrocystis pyrifera)
Locations - The Kelp Oil Supply
Harvest Capacity
• Baja California, (MX)
90,000 tons (Northern
and Southern
Permisos)
• Southern California
125,000 tons
• Central California
15,000 tons
• Total Average Annual
Potential 230,000
tons.*
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