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OBIEX
DNA Security Solutions
Obiex
An advanced technology company based in Geneseo, NY
Creates synthetic nano-scale DNA taggants* for counterfeit prevention
within high-value industries
Mission: To lead the way in:
 Forensic security against counterfeiters
 Protect the reputation of businesses
 Mitigate financial losses
 Ensure the safety of consumers
Based upon research conducted by Dr. Anthony J. Macula at SUNY Geneseo;
Funded in 2010 by the US Air Force and a $150K SBIR Phase I Grant
*Marker on object for identification purposes
The Problem
● Major corporations in U.S. and globally produce high value products
with the expectation that their products will get to their customers
● $1.7T WW entering sales and distribution channels
● $200 - 250B lost in U.S. annually, but even worse
In pharma, counterfeit meds lead to treatment failure
In electronics, compromise national defense
● Counterfeiters put corporate reputations, and customer trust at risk
● New and improved methods to avoid detection
● $82B in anti-counterfeiting measures
● Popular methods lack higher level forensic security
DNA taggants with tens of thousands of unique signatures can provide
this level of forensic security
International Chamber of Commerce
• We have synthetic DNA anti-counterfeiting taggants
Quick Primer:
• DNA is composed of 4 subunits, or nucleotide bases:
Adenine (A), Guanine (G), Cytosine (C), and Thymine (T)
• These subunits can be assembled (like building blocks) to create a
single-strand of DNA, e.g., TGCAAT, CCAGTA, etc. with a unique
sequence of bases, represented by a unique string of letters
Our solution: Dtags™
Adenine Guanine Cytosine Thymine
Dtags™ on Paper
• We have created a software program (SynDCode) that uses
o mathematical information and coding theory
o molecular biology and biomolecular thermodynamics
o for “highly-intelligent sequencing”
• Nucleotides are selectively sequenced along a chain to meet specific criteria
o no cross-hybridization, i.e., no unintended double-stranded DNA,
o which could result in misreads, and
o false “priming sites” when we create copies of these strands
• First mini-sequences are created, then they are assembled into longer chains
• The result is a collection of “molecular blueprints”, i.e., molecules on paper
Dtags™ in Test Tubes
• We then give these molecular blueprints to molecular biologists who
create a biological library of unique DNA strands, called “encoders”
• We again apply our understanding of math and biology to choose and
physically mix a combination of these encoders to create a customized
synthetic DNA taggant
• The “recipe” for each unique taggant is maintained on a high security
computer and is assigned to a specific customer
1 5432
25
20
15
10
3, 5,
20
Taggant
Encoders
Dtags™ in Ink
3, 5,
20
• The taggants can be incorporated into various substances, e.g. ink,
and used to write on a product
Taggant
• Note that if we have just 100 test tubes of encoders, we can create
1010 taggants, or 10 billion unique taggants
800 tubes gives us 1080 taggants or more than there are electrons in the universe!!
Authentication Services
• In the event of a potential malicious act of counterfeiting,
• Our customer sends a sample back to our lab
• Using math and biological techniques, we can decode the sample
• Verify its authenticity and send back a report
Authenticity
Verified
Or
Counterfeit
Report
Obiex:
does the
sample
match the
original,
unique
taggant
signature?
3, 5,
20
Intellectual Property
• Issued US patent 8,735,327 which protects our method of
synthesizing DNA taggants using combinatorial mathematical
algorithms to define the nucleotide sequences in the DNA strands
• Proprietary bioengineering software tool, SynDCode
• Additional patent applications pending for compositions and uses of
the markers as forensic taggants
Technology-to-Market Map
Vials of DNA
markers in
stabilizing
solution
Pharmaceutical
Products IndustryApplication
Vials of DNA
markers in inks
LibraryofDNA
Strands
Authentication
Service
Electronics
Documents
Textile
Highly
Intelligent
Sequencing
Technology
Petrochemicals
Competition
Favorability
“Integrators want something
secure, new and exciting”
- Rosalie Clemens, Director of
Business Development, ASE Optics
Competitive Advantages
Authentication Tech
Taggants Inks & Dyes Watermarks Holograms
Millions of "Unique Signatures"
Highly-Covert
Replication Resistant
Deeply Layerable
Nanoscale
Unit Cost
Authentication Time
Barriers to Entry
Competitive Advantages
Taggant Tech
Obiex
Synthetic
ADNAS
Botanical
Non-DNA
Taggants
Forensic Quality
Safety
Replication Resistant
High-Information Encoding
Multiplexing
Commercial Scalability + Cost
Operations
OBIEX DNA Supplier
Receive
biological library
of DNA strands
Send Molecular
Blueprints
Electronics Manufacturer
or Supplier to the
Commercial and Defense
Industry
Customer
Encoders
 Molecular blueprints
 Physically mix encoders
 Sales & marketing
 Packaging & shipping
 Verification services80% Gross
Profit Margin
*1 lot marks 10,000
units of merchandise
$200 / lot
$1,100 / lot*
Keep
$900/$1,100
1,805 lots $2,050
$3.7
million
1,300 lots $1,120
$1.5
million
Units Price per unit/lot Revenue 2014
ADNAS
Obiex
45%
Cost
Advantage
Market Size
“There is room in the market for what Obiex is doing”
Mr. John Cronin, V.P. of Operations, North Shore Components
Revenue 2018
Projected Financials
Year 2016 2017 2018 2019 2020
Revenues $375k $690k $1,585k $3,840k $5,745k
Cost of Goods Sold $86k $122k $197k $366k $501k
Gross Profit $288k $567k $1,387k $3,473k $5,243k
Gross Profit Margin 77% 82% 88% 90% 91%
Operating (Fixed) Expenses $215k $281k $431k $532k $633k
EBITDA $72k $285k $955k $2,940k $4,609k
 Market penetration of 35% in 3 years
 Revenue over $5.7M by 2020
 Gross Margin over 90% in 5 years
 EBITDA reaching $4.6M by 2020
Company Managers
Andrei Poblaguev – Director of Business Development
Karynil Perez- Chief Operating Officer
Mauricio Carneiro – Chief Financial Officer
Sarah Ulrich – Chief Scientific Officer
*We are currently seeking a CEO with experience in anti-counterfeiting
Advisory Board
Anthony J. Macula, Ph.D. – Inventor; Professor of Mathematics at SUNY Geneseo
John M. Hammond, P.E. - President of Patent Innovations LLC
Joseph F. Ruh - General Counsel and Corporate Secretary at Carestream Health
Robert G. Lamb, III - Senior Associate at Boylan Code
Michael Meador - Principal at Alliance for Manufacturing & Technology
Wendy Pogozelski, Ph.D.- Professor of Biochemistry at SUNY Geneseo
Management Team
Project Plan
Research and Development
Software R&D __________________
DNA applicator R&D subcontracted______
FDA Approval for Pharma TBD____
Alpha and Beta Testing
Gas, ink, toner, plastic, paint (ppt)
Layered overt fluorescent taggant
Equipment and Facilities
Find facilities ______________________
Purchase lab equipment ______________
Attain NQCA* certifications __________
Administration/ Operations
Hire IT and Lab Technicians __________
Sign contracts with customers _________
Develop partnership
* National Quality Control Assurance
2015 2016
Q3 Q4 Q1 Q2
Ready for
Market
Start-Up Expenses Amount
Facilities $70,000
PCR Machine $50,000
Security Systems $50,000
Full Time Lab Technician Salary $40,000
Total Start-Up Expenses $210,000
Sources of Capital Amount
SBIR Phase I $150,000
Investors $ 60,000
Total Source of Funds $210,000
Use of Funds
• Counterfeiters damage corporate reputations and endanger consumers
• There is a significant need for forensic anti-counterfeiting solutions
• We have the product that addresses that market need
• There is room in the market for new competitors
• Business model demonstrated by another successful company
• Dedicated and qualified team to execute
• Ready to go to market in under a year
• Significant revenues with large profit margins
Thank you for your attention!
Conclusion

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Obiex Investor Presentation

  • 2. Obiex An advanced technology company based in Geneseo, NY Creates synthetic nano-scale DNA taggants* for counterfeit prevention within high-value industries Mission: To lead the way in:  Forensic security against counterfeiters  Protect the reputation of businesses  Mitigate financial losses  Ensure the safety of consumers Based upon research conducted by Dr. Anthony J. Macula at SUNY Geneseo; Funded in 2010 by the US Air Force and a $150K SBIR Phase I Grant *Marker on object for identification purposes
  • 3. The Problem ● Major corporations in U.S. and globally produce high value products with the expectation that their products will get to their customers ● $1.7T WW entering sales and distribution channels ● $200 - 250B lost in U.S. annually, but even worse In pharma, counterfeit meds lead to treatment failure In electronics, compromise national defense ● Counterfeiters put corporate reputations, and customer trust at risk ● New and improved methods to avoid detection ● $82B in anti-counterfeiting measures ● Popular methods lack higher level forensic security DNA taggants with tens of thousands of unique signatures can provide this level of forensic security International Chamber of Commerce
  • 4. • We have synthetic DNA anti-counterfeiting taggants Quick Primer: • DNA is composed of 4 subunits, or nucleotide bases: Adenine (A), Guanine (G), Cytosine (C), and Thymine (T) • These subunits can be assembled (like building blocks) to create a single-strand of DNA, e.g., TGCAAT, CCAGTA, etc. with a unique sequence of bases, represented by a unique string of letters Our solution: Dtags™ Adenine Guanine Cytosine Thymine
  • 5. Dtags™ on Paper • We have created a software program (SynDCode) that uses o mathematical information and coding theory o molecular biology and biomolecular thermodynamics o for “highly-intelligent sequencing” • Nucleotides are selectively sequenced along a chain to meet specific criteria o no cross-hybridization, i.e., no unintended double-stranded DNA, o which could result in misreads, and o false “priming sites” when we create copies of these strands • First mini-sequences are created, then they are assembled into longer chains • The result is a collection of “molecular blueprints”, i.e., molecules on paper
  • 6. Dtags™ in Test Tubes • We then give these molecular blueprints to molecular biologists who create a biological library of unique DNA strands, called “encoders” • We again apply our understanding of math and biology to choose and physically mix a combination of these encoders to create a customized synthetic DNA taggant • The “recipe” for each unique taggant is maintained on a high security computer and is assigned to a specific customer 1 5432 25 20 15 10 3, 5, 20 Taggant Encoders
  • 7. Dtags™ in Ink 3, 5, 20 • The taggants can be incorporated into various substances, e.g. ink, and used to write on a product Taggant • Note that if we have just 100 test tubes of encoders, we can create 1010 taggants, or 10 billion unique taggants 800 tubes gives us 1080 taggants or more than there are electrons in the universe!!
  • 8. Authentication Services • In the event of a potential malicious act of counterfeiting, • Our customer sends a sample back to our lab • Using math and biological techniques, we can decode the sample • Verify its authenticity and send back a report Authenticity Verified Or Counterfeit Report Obiex: does the sample match the original, unique taggant signature? 3, 5, 20
  • 9. Intellectual Property • Issued US patent 8,735,327 which protects our method of synthesizing DNA taggants using combinatorial mathematical algorithms to define the nucleotide sequences in the DNA strands • Proprietary bioengineering software tool, SynDCode • Additional patent applications pending for compositions and uses of the markers as forensic taggants
  • 10. Technology-to-Market Map Vials of DNA markers in stabilizing solution Pharmaceutical Products IndustryApplication Vials of DNA markers in inks LibraryofDNA Strands Authentication Service Electronics Documents Textile Highly Intelligent Sequencing Technology Petrochemicals
  • 11. Competition Favorability “Integrators want something secure, new and exciting” - Rosalie Clemens, Director of Business Development, ASE Optics Competitive Advantages Authentication Tech Taggants Inks & Dyes Watermarks Holograms Millions of "Unique Signatures" Highly-Covert Replication Resistant Deeply Layerable Nanoscale Unit Cost Authentication Time Barriers to Entry Competitive Advantages Taggant Tech Obiex Synthetic ADNAS Botanical Non-DNA Taggants Forensic Quality Safety Replication Resistant High-Information Encoding Multiplexing Commercial Scalability + Cost
  • 12. Operations OBIEX DNA Supplier Receive biological library of DNA strands Send Molecular Blueprints Electronics Manufacturer or Supplier to the Commercial and Defense Industry Customer Encoders  Molecular blueprints  Physically mix encoders  Sales & marketing  Packaging & shipping  Verification services80% Gross Profit Margin *1 lot marks 10,000 units of merchandise $200 / lot $1,100 / lot* Keep $900/$1,100
  • 13. 1,805 lots $2,050 $3.7 million 1,300 lots $1,120 $1.5 million Units Price per unit/lot Revenue 2014 ADNAS Obiex 45% Cost Advantage Market Size “There is room in the market for what Obiex is doing” Mr. John Cronin, V.P. of Operations, North Shore Components Revenue 2018
  • 14. Projected Financials Year 2016 2017 2018 2019 2020 Revenues $375k $690k $1,585k $3,840k $5,745k Cost of Goods Sold $86k $122k $197k $366k $501k Gross Profit $288k $567k $1,387k $3,473k $5,243k Gross Profit Margin 77% 82% 88% 90% 91% Operating (Fixed) Expenses $215k $281k $431k $532k $633k EBITDA $72k $285k $955k $2,940k $4,609k  Market penetration of 35% in 3 years  Revenue over $5.7M by 2020  Gross Margin over 90% in 5 years  EBITDA reaching $4.6M by 2020
  • 15. Company Managers Andrei Poblaguev – Director of Business Development Karynil Perez- Chief Operating Officer Mauricio Carneiro – Chief Financial Officer Sarah Ulrich – Chief Scientific Officer *We are currently seeking a CEO with experience in anti-counterfeiting Advisory Board Anthony J. Macula, Ph.D. – Inventor; Professor of Mathematics at SUNY Geneseo John M. Hammond, P.E. - President of Patent Innovations LLC Joseph F. Ruh - General Counsel and Corporate Secretary at Carestream Health Robert G. Lamb, III - Senior Associate at Boylan Code Michael Meador - Principal at Alliance for Manufacturing & Technology Wendy Pogozelski, Ph.D.- Professor of Biochemistry at SUNY Geneseo Management Team
  • 16. Project Plan Research and Development Software R&D __________________ DNA applicator R&D subcontracted______ FDA Approval for Pharma TBD____ Alpha and Beta Testing Gas, ink, toner, plastic, paint (ppt) Layered overt fluorescent taggant Equipment and Facilities Find facilities ______________________ Purchase lab equipment ______________ Attain NQCA* certifications __________ Administration/ Operations Hire IT and Lab Technicians __________ Sign contracts with customers _________ Develop partnership * National Quality Control Assurance 2015 2016 Q3 Q4 Q1 Q2 Ready for Market
  • 17. Start-Up Expenses Amount Facilities $70,000 PCR Machine $50,000 Security Systems $50,000 Full Time Lab Technician Salary $40,000 Total Start-Up Expenses $210,000 Sources of Capital Amount SBIR Phase I $150,000 Investors $ 60,000 Total Source of Funds $210,000 Use of Funds
  • 18. • Counterfeiters damage corporate reputations and endanger consumers • There is a significant need for forensic anti-counterfeiting solutions • We have the product that addresses that market need • There is room in the market for new competitors • Business model demonstrated by another successful company • Dedicated and qualified team to execute • Ready to go to market in under a year • Significant revenues with large profit margins Thank you for your attention! Conclusion