2011final proposal evaluation · 2012-08-09 · 2011 tfsp final proposal evaluation v two-stage...

2011 TFSP Final Proposal Evaluation

2011Final Proposal Evaluation

July 2011

Third Frontier Sensors Program


Copyright 2011 Taratec Corporation. All rights reserved.

This Report written by:

Taratec Corporation1251 Dublin RoadColumbus, Ohio 43215United States of AmericaEdward W. Ungar, President

For more information or to obtain additional copies of this Report, contact Taratec Corporation byphone at (614) 291-2229, or by fax at (614) 291-2867. Taratec Corporation is located on the Internetat http://www.tarateccorp.com


v TARATEC CORPORATION

• Dr. Edward Ungar, President

• Mr. Bill Munk, Project Leader

• Dr. Fred Clark

• Dr. Paula Dunnigan

• Mr. Chuck Meadows

• Mr. Reed Slevin

v EXTERNAL REVIEWERS

• Mr. Norman D. MalcoskyMr. Malcosky has over 40 years of experience in the energy industry performing and managing researchactivities in fossil fuel exploration, alternative fuel vehicles, biofuels, and fuel cells. He has specialized inLiquefied Natural Gas, Compressed Natural Gas, and propane-fueled vehicles. Using his strongbackground in mechanical engineering, he has patented various types of industrial equipment for thenatural gas industry. Mr. Malcosky retired from Battelle Memorial Institute in 2002, where he served as aSenior Research Scientist in Battelle’s Transportation Group and Equipment Design and MechnicalSystems Group.

• Dr. Joseph M. MorabitoDr. Morabito is a Director at Alcatel-Lucent. He was named a Bell Laboratories Fellow in 2004 foroutstanding lifetime contributions to thin film surface and interface analysis and the development of newthin film systems that provide high density interconnections, thin film resistors, capacitors and cross-oversof high reliability and performance for the silicon integrated circuits (SICs) and hybrid integrated circuits(HICs) used in advanced telecommunications systems. Dr. Morabito is an expert in photovoltaictechnologies and was a valuable advisor to the EPRI Solar Program for over 20 years. He has broadexpertise in other distributed energy technologies and has published extensively on systems analyseslinking various types of distributed energy generation with the smart grid. Dr. Morabito serves on theBoard of Directors of the R&D Council of New Jersey.

Proposal Review Team


v Two-stage evaluation process

v The evaluation process is objective and robust. Its consistency has been evaluated through rescoring.Results were found to be independent of the composition of the individual review panels and consistentyear-to-year.

v The objective of the First Stage Evaluation is to rank the proposals on the basis of which best meet theRFP requirements and then to select the highest-ranking proposals for more in-depth evaluation.

• The cut-point is based on significant score differences and best use of evalution resources. Taratecrecommends a cut-point and ODOD selects the cut-point.

v The objective of the Second Stage Evaluation is to rank the highest-scoring proposals from the FirstStage on the basis of the quality of investment for the State of Ohio.

• Ohio job and revenue creation/retention that is likely to occur within 3–5 years

• Company viability and business functions that are planned in Ohio

• Potential of the project to contribute to a cluster of related companies in an industry that Ohio is trying to build

Overview of Proposal Evaluation Process


v FIRST STAGE EVALUATION

• Conflict of Interest evaluation for each reviewer

• Each proposal is read by 3 reviewers (internal and external)

• Proposal is scored by each reviewer using a scoring instrument based on the RFP criteria

• All scores from each reviewer are entered into a database

• Reviewers provide written comments on areas of concern or those requiring clarification

• A list of proposals ranked on the basis of their average scores is produced

• Taratec meets with ODOD to establish the competitive range (cut-point) for each competition

• Proposals scoring above the cut-point advance to the Second Stage Evaluation

v SECOND STAGE EVALUATION

• Reviewer comments are integrated into the construction of a customized set of written questions foreach applicant

• Applicants have one week to submit written responses

• Face-to-face meeting (90 minutes) for reviewers and applicants to discuss issues

• Final trade secret identification by applicants

• Preparation of 2-page project write-up and a 2-page confidential summary

• Risk-benefit scoring by the entire review team

• Scores entered into the database

• Final recommendations developed

• Preparation of materials for consideration by the Third Frontier Commission

Proposal Evaluation Process


SUMMARY OF FIRST STAGE EVALUATIONS

Scoring Methodology

TFSP

Proposals Received 23

Proposals Recommended for 2nd Stage 8

Highest Score Recommended 68.7

Lowest Score Recommended 64.7

Highest Score Not Recommended 55.3

TFRDF Available $7M

Cumulative TFRDF Requested $8M


SECOND STAGE EVALUATION FACTORS

Scoring Methodology (continued)

TECHNICAL RISK

• Technical Reach

• Resource Limitations

• Technology Protection

COMMERCIAL RISK

• Market Opportunity/Pull

• Corporate Stability

• Commercial Infrastructure

MISSION IMPACT

• Cluster Formation

• Ohio Economics

• Business Model

• Past Performance


2011 TARGETS

Technical Commercial MissionRisk Risk Impact

3.50 2.20 10.00

• Two 2-dimensional scoring matrices

- One for Technical Risk- One for Commercialization Risk- Both risks are plotted against

Mission Impact

• Target for Technical Risk is (10, 3.5)

• Target for Commercial Risk is(10, lowest value)

• Project’s final score is based uponsum of D1 and D2

Scoring Methodology (continued)


The targets for Technical Risk, Commercial Risk, andMission Impact have been set based on the profile ofprojects that are most likely to meet the intent of theThird Frontier Cluster Programs to develop newtechnology businesses that will produce economicdevelopment in Ohio in the 3- to 5-year timeframe.These targets were set after consultation with ODODand the Third Frontier Commission.

Mission Impact

Ohio is seeking to fund the projects that will result inthe highest economic development impacts for thedollars invested. Therefore, the target for missionimpact has been set at the maximum of 10.

Technical Risk

Since economic development results are desired in arelatively short timeframe, projects selected for fundingshould be relatively mature, i.e., in the late Incubating orDemonstrating Stage with a functional prototype.

Projects that contain relatively little technical chal-lenge, represent product line extensions, or are closeto market are likely to score low on technical risk, i.e.1 or 2. These types of projects would be candidatesfor internal funding by the applicant company, couldattract investment, or would be bankable. They wouldnot have the level of risk intended for this program.

At the other end of the spectrum, there will beprojects that are still in early stages of developmentand have a number of significant technical and cost is-sues remaining to be resolved. These projects are fre-quently classified as Imagining or early Incubating

Stage. They are likely to have technical risk scores inthe range of 7–10. These projects would be candi-dates for federal R&D funding in the form of SBIRsor NIH grants. Only after they reach greater technicalmaturity would they be attractive candidates for theThird Frontier Cluster Programs.

The ideal level of technical risk for these three clusterprograms has been set at 3.5. It is believed that thislevel of technical risk presents the optimum probabil-ity of achieving the intended economic developmentoutcomes within the targeted timeframe.

Commercial Risk

The cluster programs are intended to serve theneeds of both start-up companies and companiesthat have on-going business.

Existing companies frequently have well-developeddistribution channels and some degree of financialstability resulting in low commercial risk scores.However, they may require assistance in newproduct development to reach a level of productmaturity that will allow them to compete for scarceinternal resources. Proposals from these companieswill typically have commercial risks that score inthe range of 1.5–2.5.

It was decided that these companies should not bepenalized for having "too low of a commercializationrisk." Therefore, for each competition, the target forcommercial risk is set as the floor or at the lowestvalue of all proposals in the competitive range. Thisensures that no proposal is penalized for having theability to bring its product into the marketplace.

Target Definition forOhio’s Third Frontier Cluster Programs


2011 TFSPThird Front ier Sensors Program

S u m m a r i e s o f P r o p o s a l s i n C o m p e t i t i v e R a n g e


RECOMMENDED FOR FULL FUNDINGSECOND STAGE OTF $ OTF $

OTF NO. APPLICANT SCORE REQUESTED CUMULATIVE

1. TFSP 11-837 Stoneridge, Inc. 89.6 $1,000,000 $ 1,000,000

2. TFSP 11-811 Energy Focus, Inc. 84.0 $1,000,000 $ 2,000,000

3. TFSP 11-829 Spectre Corporation 82.6 $1,000,000 $ 3,000,000

4. TFSP 11-805 Lake Shore Cryotronics, Inc. 79.7 $1,000,000 $ 4,000,000

TOTAL FUNDS REQUESTED $4,000,000

Recommendations for Funding2011 Third Frontier Sensors Program (TFSP)


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2011 TFSP Evaluation SummaryThird Frontier Sensors Program

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2011 TFSP Evaluation Summary Page 1 of 2

TFSP 11-837 Final Score: 89.6 Rank: 1

Funds Requested

TFRDF Request: $1,000,000WCF Request: $ 0

TOTAL Request: $1,000,000Cost Share: $1,000,000

Previous Ohio Investment

Stoneridge, Inc. has not received priorfunding from OTF.

Project Description

Stoneridge intends to develop, build andmarket a reliable, accurate, self-cleaning andcost-effective sensor for particulate matter(PM) that provides on-board diagnostics fordiesel engines. The "soot sensor" proposedmeasures PM in the engine exhaust and indi-cates the condition of both an engine's DieselParticulate Filter (DPF) and the sensor itself.The DPF is the PM remediation device thatcontrols PM levels to the regulatory limits. Thecore technology, a single layer ceramic elementwith platinum film traces, is already developedand tested in the laboratory and by enginemanufacturers. In the 3-year project, Stoneridgewill work with OSU to characterize the electri-cal and physical characteristics of exhaustsoot to determine how these properties influ-ence the proposed electric resistance-basedsensor response, complete longer-term test-ing to characterize effects of contamination ex-posure and validate sensor reliability, optimizethe sensor, produce production prototypes forcustomer evaluations and obtain a purchasecommitment from an engine manufacturer.

Key Issues

While the alpha prototypes have been evalu-ated by potential customers and have dem-onstrated functionality, critical reliability anddurability testing are yet to be performed. Thesensor packaging also needs to be completedand the cost objectives met. Stoneridge hasallocated 3-year effort to finalize the sensordesign and create a production version. Basedon its experience and expertise in the tech-nology it appears the development can besuccessfully completed.

Without the OTFSP award there is a possibil-ity that the soot sensor manufacturing willnot be done in Ohio, however, Stoneridgewill commit to Ohio manufacturing if theOTFSP award is granted.

Stage of Development

Collaborators

The Ohio State University(OSU), Center for AutomotiveResearch (CAR)

County Location

Stoneridge, Inc.Development of a Simplified Soot Sensor With High Sensitivity and RapidRegeneration Capability to Control Emissions of Advanced Combustion Engines

Technical RiskOverall Score = 3.93

Technical Reach

The proposed soot sensor alpha prototype hasdemonstrated its ability to accurately measurePM at the compliance levels set by the CaliforniaAir Resources Board (CARB) and those in placein Europe. Over 50 sensor samples have beenconstructed. Optimization of electronics and sen-sor element designs to lower the manufacturingcost and long-term performance/reliability test-ing on engines will be conducted as part of theproject. The project will result in a productionlevel prototype for end user evaluations.

Resource Limitations

Stoneridge currently produces over 27 prod-uct lines at its Lexington, OH facilities, includ-ing an exhaust gas temperature sensor, so ithas adequate staff and equipment resourcesto conduct the project work proposed. OSUprovides additional engine testing capabilitiesand materials characterization expertise.Stoneridge estimates $7M to $8M will be re-quired to fully commercial the soot sensor andplans on providing that support internally al-though private investment could be sought ifneeded. It has also applied for federal fundingunder the 2011 Vehicle Technologies Program.

Technology Protection

A provisional patent was filed in February 2010protecting the single layer design followed bya non-provisional PCT patent filed early thisyear. A second provisional patent was filed inApril 2011 protecting the measurement tech-niques and algorithm along with the sensorpackaging design. It is expected the secondprovisional patent will result in 2 or 3 separatenon-provisional applications.

Commercialization RiskOverall Score = 2.20

Market Opportunity/Pull

The need for a PM sensor results from the morestringent upcoming on-board diagnostic (OBD)


Prior Ohio Investments

None

TFSP 11-837 / Stoneridge, Inc.

legislation on DPF monitoring for on-roadvehicles (finalized by CARB). This legisla-tion creates a need in California for a PMsensor in diesel vehicles by 2013 and Euro-pean legislation creates a need in 2014.Therefore, nearly all of the engine OEMsare evaluating sensors that will meet theOBD requirements. Stoneridge claims evalu-ations to date make its technology a leadingsoot sensor candidate.

Corporate Stability

Stoneridge is publically traded and is aleading independent designer and manu-facturer of electrical and electronic com-ponents, modules and systems with over80% of its revenues derived from auto andtruck product sales. Nearly 90% of its over$600M in annual sales is to major vehicleOEMs in the U.S. and Europe. Its Lexing-ton, OH facility employs over 700 of its870 Ohio-based employees.

Commercial Infrastructure

Stoneridge has global operations including14 manufacturing facilities and 30 sales andengineering support offices. Its current cus-tomer base includes the OEMs and tier 1suppliers that are interested in the proposedsoot sensor.

Mission ImpactOverall Score = 8.75

Cluster Formation

Stoneridge is headquartered in Ohio withmanufacturing facilities in Lexington, OH. Itserves the automotive and engine industries.It currently uses about 40 Ohio suppliersfor its product lines and in 2011 expects tospend over $12M with these suppliers. It ispartnering with OSU on this project to le-verage the expertise at the OSU Center forAutomotive Research (CAR) and OSU'smaterials characterization capabilities.

Ohio Economics

Stoneridge forecasts it will generate from$2M to $7M in soot sensor sales in Year 3after the project start. In Year 5, sales areprojected to exceed $100M. These sales willcreate 40 new Stoneridge jobs in Ohio byYear 3 and over 100 by year 5.

Business Model

Stoneridge plans on conducting all commer-cialization activities related to the soot sen-sor. The Lexington facilities house the R&D,manufacturing and engineering expertise tosupport the sensor commercialization. WhileStoneridge does have other manufacturingoptions for the sensor, it will fully commit toOhio if awarded the proposed project.


Mission Impact

Te

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High

High

Low



Funds Requested




EFOI received an OTFPVP award in 2011for developing a PV-powered LED light fixturefor pole and wall mounted exterior lighting. Thesystem uses a unique concentrated PV chipbeing developed at Ohio State. This projectwas just begun in April of 2011, but is cur-rently ahead of schedule in terms of technicalprogress. Interest from a fast food restaurantchain has been obtained and it may serve asan additional demonstration partner.

Project Description

Energy Focus (EFOI) proposes develop-ing, manufacturing and marketing a uniquelighting sensor that coupled with its LED fluo-rescent bulb replacement product(IntelliTubeTM) will improve building lightingcontrol, save energy, and reduce constructionand lighting upgrade costs. The sensor willuse wireless communication and be poweredby a simple photovoltaic (PV) cell. The sensorwill housed on a thin, flexible adhesive-backedsubstrate for easy installation and is targetedto cost under $3. It senses the ambient lightconditions and produces a signal ("chirp") ata rate that is proportional to the lighting level.A controller that is built into LED lamp adjuststhe lighting to the preferred level based on thereceived "chirp" rate. The 2-year project tasksinclude lamp and sensor/receiver develop-ment. Specific OTFSP project objectives in-clude finalizing the specifications for thesensor and building pre-production proto-types, integrating the receiver into the lampcontrols and testing the sensor/receiver per-formance. Independently, the lamp develop-ment (a 4-foot LED-based replacement tube)will be completed by EFOI within the first 6months of the project. The final task in theOTFSP project is to integrate the entire light-ing system, build complete systems and evalu-ate performance at committed customer sites.


Collaborators

The Ohio State University (OSU)

Valtronic USA, Inc.

University of Dayton ResearchInstitute (UDRI) / IDCAST

Geis Construction

County Location

Energy Focus, Inc.Cost-effective Real-time Intelligent Collective Knowledge EnvironmentalTransmitter (CRICKET) System

Key Issues

The CRICKET system sales projections ap-pear somewhat optimistic and rely on an EFOIpayback analysis that justifies the perfor-mance contracting business approach. TheLED lights provide about 50% of the energysavings, in some cases, justifying the LEDlighting retrofit alone. The incremental sav-ings from the auto-dimming capability of theCRICKET system increases the economic ben-efit, but it is not clear what percentage of themarket will actually realize this additional ben-efit. However, the collaborating contractorsin the project indicate the total system ben-efits will be marketable and that the sales po-tentials are conservative.

EFOI has made a dramatic turnaround in itsbusiness with sales increasing from $12M in2009 to $35M in 2010 and is on-track to repeatthat revenue level in 2011. This has allowedEFOI to add to its cash position although it isstill projected to operate at minor loss in 2011.


Technical Reach

Two-foot IntelliTubesTM have been producedand are in service for the Navy and a 4-footversion (building standard) is in a final proto-type stage. Hand-built sensors have been fab-ricated and demonstrated, but additionaldesign, component selection and packagingactivities are needed to finalize the low cost,"stick-on" sensor. OSU is tasked with refiningthe control algorithms that will allow multiplelamp interaction and sensor to receiver com-munication. The initial flexible substrate mate-rial to be used has been selected, but otheroptions will be investigated.



High Efficiency Photovoltaic Enabled Off-grid System, 2011, $1,000,000

TFSP 11-811 / Energy Focus, Inc.


The project funding is expected to be suffi-cient to develop and deliver fully integratedand functional LED-based, light-controlledlighting systems. The EFOI/OSU team hasthe technical capability needed to developthe product and EFOI has the funding re-sources to carry out the product commer-cialization. EFOI’s business is in specialtylighting products and the LED replacementlamp is supported internally and with fed-eral support. The project proposed acceler-ates the commercialization of theauto-dimming feature.


EFOI has completed a full patent search andhas filed for 2 U.S. patents that will providecoverage for the sensor/transmitter and theoverall lighting system. In total, five patentapplications are underway on the CRICKETtechnology. The potential for new IP alsoexists for the control algorithms and theirplacement within the lamp.



According to a DOE study, technologyreplacing fluorescent lighting in new andexisting building constitutes a multi-bil-lion dollar potential. Customer demand ishigh, but replacement systems, especiallyretrofit applications, must provide a rea-sonable payback period. Federal interesthas already been demonstrated by thesignificant investment it has made in effi-cient lighting technology ($17M to EFOIalone in the last decade). Project collabo-

rators Geis Construction and Stones River(SRI), committed end-users of the tech-nology, demonstrate commercial interest.The total market available, based on per-formance contract installations alone hasan estimated value of $100M.

Corporate Stability

EFOI was founded in 1985 and is publiclyowned. It is focused on efficient lightingsolutions and products, employing about70. In 2010 EFOI produced $35M in salesrevenue and added to its cash position,but reported a net income loss. Almost$20M of its revenue was from its StonesRiver division that provides lighting ret-rofit and contractor services.


EFOI has an established direct sales team(>30 people) and over 60 sales represen-tative firms covering every major marketin the U.S. EFOI provides turnkey light-ing solutions as well as installationthrough Stones River. Both SRI and Geis(Ohio-based building contractor) provideaccess to customers. EFOI is listed on theGSA and is providing LED lighting prod-ucts to the Navy.


Cluster Formation

EFOI will build the lamps and electronics in-house and will assemble CRICKET systemsin Ohio. It plans on contracting with Ohio-based Valtronics for the sensor fabrication.EFOI uses Ohio suppliers for the majorityof its system components and is leveraging

algorithm development expertise at OSU andmarket knowledge at UDRI for the project.Geis is a committed end user for theCRICKET system and provides access topotential lighting retrofit customers.

Ohio Economics

Initial CRICKET system sales are scheduledfor Year 2 of the project and the followingyear sales are projected at $10M (~1% ofthe performance contracting market share)and will be from sales to SRI. In Year 5 salesin this market are projected to be $52M.These revenues are for the Cricket systemsales to the performance contractors anddo not include revenues from the perfor-mance contract agreements conducted byStones River. During the project period EFOIwill add 4 employees, another 30 in Year 3and by Year 5 projects a total of 120 newjobs. The job creation is aggressive, but arebased on the revenue projections and arepatterned after EFOI's current revenue tojob ratio.

Business Model

EFOI is headquartered in Ohio and will buildthe LED lamps and system electronics in-house, contract the sensor fabrication toValtronics and assemble CRICKET systemsat its Ohio manufacturing facilities. Initialmarket introduction will be through directsales to building contractors providing light-ing retrofits. Geis and SRI are committedpartners in this business. Sales for new con-struction will likely require partnership ar-rangements with established contractorsthat are not yet developed.


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Funds Requested




Spectre Corporation (d/b/a AdvancedTechnology Associates) has not received priorfunding from OTF.

Project Description

Spectre proposes developing and com-mercializing a silicon carbide (SiC) based piezo-resistive pressure sensor that provides longerlife and superior performance, and is capableof operating at 3 to 4 times the maximum tem-perature of current technologies. The technol-ogy was developed at NASA GRC and it willbe fully engaged in the 3-year project pro-posed. The major project tasks involve design-ing and manufacturing commercially viableprototype sensors. NASA, LCCC and Spectrewill validate the sensors performance againstdesign specifications. After any necessarydesign revisions, accelerated life testing willbe performed, a manufacturing plan developedand production build up activities undertaken.In year 3, the production build up will be com-pleted, commercial demonstrations conductedand the sensor product launched.

Key Issues

NASA GRC will initially provide the sensorelements to Spectre, but for volume manu-facturing, the source of the element hasnot yet been identified.

Spectre will need to expand its current cus-tomer base to reach the market projectionsindicated. The technology opens new mar-kets for sensor sales that will likely needadditional customer demonstration and vali-dation trials to gain customer acceptance.

Technical Risk

Overall Score = 4.33

Technical ReachThe NASA GRC efforts have resolved themajor obstacles related to the sensor designand achieving the high temperature perfor-mance desired. Prototype sensors have been


Collaborators

NASA Glenn Research Center

Lorain County CommunityCollege (LCCC) / SMART

County Location

Spectre Corporation (d/b/a Advanced Technology Associates)Silicon Carbide and Piezo-resistive Pressure/Temperature Sensors forCommercial, Aerospace and Industrial Applications

built and tested in real world situations (en-gines). Remaining technical objectives are op-timizing the design via modeling software,assembling the commercially viable designedprototypes and conducting laboratory and fieldvalidation testing.


The development team has the technical ex-pertise, testing and characterization facilitiesand near-term manufacturing capabilities toproduce the pressure sensor proposed. Theproject funding is projected to be sufficient toreach market entry in Year 3 of the project andsensor sales will support the operating andcapital costs needed to cover the ongoing busi-ness created by the new product.


NASA GRC holds the patents for the SiC-basedpressure sensor. A licensing agreement be-tween NASA and Spectre under a Space ActAgreement will be used for IP protection. TheIP involved also includes trade secret knowl-edge held by Spectre.



The proposed cost for the pressure transducerproposed positions it to not only displace cur-rent pressure sensors in a wide variety of ap-plications, but opens up entirely new marketswhere pressure is not currently measured dueto sensor costs. Therefore the potential formarket for the sensor is extremely large, buthas not been detailed by market sector. Spec-tre has gained commitments from potential endusers to participate in sensor field trials, al-though none are directly participating in theproject. Spectre has an existing sensor cus-tomer base that it will leverage for initial sales.

Corporate Stability

Spectre Corporation was founded in 1976 as adistributor of various measurement instrumen-tation including pressure sensors. In 2002 itbegan pressure sensor manufacturing. The



None

TFSP 11-829 / Spectre Corporation (d/b/a Advanced Technology Associates)

company is profitable, has a positive cashposition with sales in 2010 typical of a smallcompany in this industry.


Spectre has its sales and administrative of-fices in Elyria, OH and is establishing amanufacturing operation in NorthRidgeville, OH (moving from Buffalo, NYarea). It has 4 Ohio employees currently and10 employees at its Buffalo facility. Spectrehas a sales infrastructure in place supply-ing over 800 current customers with its cur-rent pressure sensor line.


Cluster FormationSpectre is moving its sensor manufacturingto Ohio and is collaborating with NASA GRCto produce its new sensor product and LCCCfor its sensor characterization and testingcapabilities. The new Spectre operationsreside at the GLIDE incubator. NASA GRCwill initially produce the sensor elements forSpectre until volumes justify transferring themanufacturing to a commercial supplier.Spectre plans on using Ohio suppliers forsubcomponents to the extent possible.

Ohio Economics

Spectre forecasts Ohio revenues of $12Min Year 3 from the project start and $25M inYear 5 from the new sensor proposed. It willcreate 11 new Ohio jobs by Year 3 and atotal of 20 by Year 5. The sales projectionsto achieve these impacts, particularly thosefor Year 3, are aggressive, but not unrea-sonable.

Business Model

Spectre's business model is that of a stan-dard industrial manufacturing company. Itwill offer standardized products and appli-cation specific products. Sales will bethrough representatives and distributorsmany that are already in place. Spectre willalso use inside sales to reach certain cus-tomers. All business operations will bebased in Ohio.


Mission Impact

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Funds Requested




Lake Shore Cryotronics has not receivedprior funding from OTF.

Project Description

Lake Shore proposes developing and pro-ducing the first commercially availableterahertz (THz)-based spectrometer specifi-cally designed for electromagnetic materialcharacterization (EMC). Lake Shore will coupleits expertise in low temperature measurementinstrumentation, controller electronics andanalytical software with Traycer's laser and THztechnology to create a low cost, EMC solu-tion. In the 2-year OTFSP project, Lake Shorewill produce 3–4 Alpha prototype systems forend user evaluation during Year-1 and basedon end user feedback produce 4–5 Beta proto-types early in Year-2. By the end of Year-2,Lake Shore will deliver at least two pilot sys-tems for customer release and prepare for finalproduct release and market launch in Year-3.OSU's Center for Materials Characterization,its ElectroScience Lab and UDRI representtypical customers for the THz spectrometer andprovide both technical, testing and marketsupport for the product development.

Key Issues

The use of terahertz interrogation for ma-terials characterization has been demon-strated and offers capabilities that exceedthose of traditional spectrometers. TheLake Shore system provides a low tempera-ture capability (necessary for EMC) and alower cost that differentiates it from otherterahertz-based characterization instru-ments. The cost advantage is mainly dueto Traycer's unique laser design that willbe incorporated into Lake Shore's proposedEMC system. The first EMC system alphaprototype will be the initial deliverable ofthe project proposed.

The customers for the THz spectrometeroften depend on research grants or con-tracts to purchase new capital equipment.


Collaborators

Traycer Diagnostic Systems, Inc.

Univeristy of Dayton ResearchInstitute (UDRI) / IDCAST

The Ohio State University(OSU), Center for EmergingMaterials

The Ohio State University(OSU), ElectroScienceLaborator

County Location

Lake Shore CryotronicsCost-effective, Terahertz-based Characterization System for SemiconductorMaterials Research

This could affect sales cycles and the mar-ket penetration projected. Also, THz-basedinstrumentation is very new and end-useracceptance is likely to be somewhat slowerthan that for a more traditional technology.This is reflected in the moderate sales pro-jections made by Lake Shore. Greater mar-ket capture is projected to occur beyondthe 5-year OTFSP targeted timeframe.


Technical Reach

Traycer's innovative optical system is the keyTHz spectrometer component. Traycer uses asingle IR source to produce a continuous waveTHz measurement system. Trade-named,THOR, the first system is being delivered toOSU's HELIOS facility (built with support fromthe TFP) for EMC use prior to the proposedproject start. A duplicate THOR system will bedelivered to Lake Shore who will integrate thesystem into a compact and commercial EMCspectrometer. The OTSP award will support theuser demonstrations of the commercial spec-trometer in commercial context.


The technical team combines leading develop-ers of THz technology at Traycer, OSU andUDRI with a successful analytical instrumentproducer—Lake Shore. The project funding isexpected to be sufficient to carry the technol-ogy to market launch and Lake Shore has suf-ficient R&D funding to cover any projectfunding shortfall as well as the resources tofully commercialize, market and support theproduct offering.


Traycer is developing its portfolio of pat-ents that cover a range of THz technologiesincluding the single laser (THOR) system andsubmissions will be made before the projectstart. Lake Shore has proprietary knowledgeand experience in EMC measurement systemsand the application of THz technology to



None

TFSP 11-805 / Lake Shore Cryotronics

EMC. Lake Shore has leveraged this kno-whow into multiple market-leading mea-surement solutions without using patentprotection. A preliminary patent searchhas been executed only one patent wasfound in the area of interest. This is beingfurther investigated, but is not expectedto interfere with Lake Shore's IP position.


Market Opportunity/PullFacilities conducting EMC research are thetarget customers for Lake Shore's THz-based product and there are 250–500 suchfacilities in the U.S. (about 35% of the totalworldwide). The nearest current alternativeproduct to Lake Shore's proposed productis the IR spectrometer that commands asales volume of about 6000 units/year ($600–$700M/year). Independent research esti-mates the potential market for the THzproduct to be about $400M by 2015. LakeShore has received strong interest and sup-port from a wide range of potential univer-sity and research center customers it hasinterviewed, including the collaboratinguniversities in the project.

Corporate StabilityLake Shore is privately owned, has beenin business for over 40 years and cur-

rently has about 130 employees. It hasbeen profitable for 9 of the last 10 yearsand had sales revenues exceeding $25Min 2010. Lake Shore has sufficient internalresources to carry the proposed productthrough full commercialization.


Lake Shore claims to be the industry leaderin probe station platforms used in electronicmaterials research. Its customers are scien-tists and researchers in academia, nationallabs, aerospace companies and other tech-nology industries. Lake Shore has a globalsales network and about one-half its busi-ness is from international customers.


Cluster Formation

The proposed project leverages the Ohioinvestments previously made at OSU (e.g.Helios) and UDRI related to terahertz tech-nology applications and in Traycer, aterahertz-based product developer. Theproduct offers a cost and performance ca-pability for EMC not currently commerciallyavailable. As possible, Lake Shore has tra-ditionally used Ohio resources for its com-ponents and estimates it has over 100 Ohiosuppliers on its vendor list either headquar-tered or with manufacturing facilities in Ohio.

Ohio Economics

The proposed project will result in economicimpact both at Lake Shore and Traycer. InYear 3 after the project start, Lake Shore ex-pects to generate from $1.5–$2.5M in rev-enues from EMC instrumentation andsystem sales while Traycer sales will beabout $250K. This will create 5–8 jobs atLake Shore and one additional job at Traycer.By Year 5 from the project start, Lake Shore'sEMC annual revenues will grow to $4–$7.5Mand Traycer's sales to about $500K. Newjob creation at Lake Shore will grow to be-tween 12 and 23 and Traycer will add anadditional employee. Significant revenueand job growth will occur after 5 years.

Business Model

At its Ohio facility, Lake Shore will inte-grate the Traycer IR Laser system with"best-of-breed" THz generation compo-nents (commercially available) and itscryogenic, analytic and software productsto create the proposed THz-based spec-trometer. It will use its current sales anddistribution network to deliver the prod-uct to U.S. and international customers.


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Funds Requested




Optonicus has not received prior fundingfrom OTF.

Project Description

Optonicus proposes using its proprietaryadaptive electro-optic technology to providewireless, gigabit communication modules fortransmitting at high speed high resolution andhigh definition imaging and video sensor data.These modules, trade named "Gigalink", willbe cost-effective, small-sized, lightweight andlow power, providing wireless communicationsacross significantly longer distances (>5km)than traditional optical systems. In the 2-yearproject proposed, Optonicus plans ontransitioning its 1-gigabit prototype module(Gigalink 1G) into a commercial version, dem-onstrating the commercial version in-houseand conducting field tests with a variety ofidentified potential customers. After customerfeedback is received, a series of Gigalink 1Gproducts will be created and launched in early2013. In parallel, a 10-gigabit (Gigabit 10G) willbe developed and potential customers for itsevaluation secured. Product launch for theGigabit 10G is planned by the end of 2013. Thetargeted transmission range for the 1G moduleis 7km and for the 10G, 1km.

Key Issues

The field-testing proposed may uncoversome environmental issues that will re-sult in unexpected packaging and/or de-sign challenges and resultant productand development cost increases. The en-vironmental requirements would appearto vary by application complicating pro-duction processes.

Ground-to-ground data transport ap-pears to be the logical first market for theGigalink technology. Air-to-ground vali-dation has not been accomplished andwill likely require a longer product evalu-ation and acceptance period.


Collaborators

Army Research Lab (Adelphi, MD)

Persistent SurveillanceSystems

Rosewood Machine and Tool

Radiant Networks

5Rivers Advisors LLC

County Location

OptonicusThe Gigalink Product Family: Wireless Gigabit Data Transceiver Systems forSensor Information Delivery, Pre-Processing and Distribution

Optonicus' near term job projections willrequire that the grants anticipated are ob-tained and/or investments can be secured.The management team has been success-ful to date in both types of fund raising.


Technical Reach

Optonicus has integrated its commercialINFOCO transceivers with its Gigalink modulesand added its adaptive locking technology thatkeeps the laser communication link aligned inthe presence of platform disturbance and at-mospheric turbulence-induced distortions. Afunctional prototype has been built and testedand demonstrated its ability to handle platformjitter and severe turbulence conditions. Thisprototype needs redesign of its optical, elec-tronic and mechanical subsystems to decreasecost and increase product robustness. Afterthese redesigns are complete the system willbe bench-top, outdoor and field-use evaluated.Persistence Surveillance and Radiant Networkswill conduct air-to ground and ground-to-ground testing.


The project team has credible expertise andbackground in the technical area andOptonicus' CEO has experience in networkcommunication company startups. The costshare for the proposed project is entirely fromthe Army Research Laboratory (ARL) and ispart of a $1.4M cooperative agreement withOptonicus directed at communications viaphase-locked laser transceivers. Optonicusalso has secured $800K in additional grantsto support its operations and the Gigalinkproduct series commercialization ($425K ofthat amount). About $300K of additional fund-ing will be needed to carry the 10G productthrough commercialization. The Army has re-quested an additional proposal fromOptonicus for over $5M.



None

TFSP 11-813 / Optonicus


Optonicus has patent protection for itsINFOCO transceiver technology that rep-resents the core of the proposed Gigalinkproducts. It plans on filing for patent pro-tection on the integrated Gigalink tech-nology during the project period andindicates the OTFSP award will acceleratethe patent activity.



The point-to-point (P2P) wireless data com-munication market was about $800M in 2010and is predominately for 1 to 100 megabitlink capacity. Over the next 5 years wirelessP2P gigabit link capacity is projected toreach $150M/yr. growing at over 20% annu-ally. Optonicus projects that its Gigalinkproduct penetration will be about 13% or$20M. Customer readiness is supported bythe significant military funding directed toOptonicus and by the willingness of theproject collaborators to evaluate Gigalink.

Corporate Stability

Optonicus is a 2009 startup owned by its2 principals. It is located in a newly openedIDCAST building and has laboratoryspace at UD's Intelligent Optics Lab.

Optonicus 2010 revenue was from an ARLcontract. It currently offers a line of fiberoptic products (INFOCO) and control elec-tronics that are projected to generate salesin 2011 and 2012. While sales of the cur-rent product and the new Gigalink prod-ucts are expected to sustain the company,Optonicus will continue to pursue gov-ernment awards to support growth.


Optonicus will rely on its relationship withARL to assist it in building a sales path toDOD markets. Radiant Networks will pro-vide a test bed for product evaluation andrepresents an alpha sales channel partnerfor the telecom and enterprise commercialmarkets. Direct sales to end-users such asPersistent Surveillance will also be pursued.


Cluster Formation

Optonicus plans on using an Ohio contractmanufacturers to produce the mechanicalsub-system assembly and communicationscontrol unit. It will also use Ohio companiesfor its software development, marketing andbusiness strategy services. The use ofIDCAST facilities provides access to and

integration with the several imaging tech-nology and data handling activities ongo-ing in the Dayton area. The initial productevaluators are Ohio companies that the of-fer products/services that would be en-hanced by the Gigalink technology.

Ohio Economics

Optonicus projects that in Year 3 from thestart, the Gigalink product family will gener-ate $2M in sales and in Year 5 will grow to$13M. Commercial sales will represent about75% of the total and military sales the re-mainder. To support the Gigalink product,Optonicus will create 34 new Ohio jobs byYear 3 and 45 by Year 5. While the salesprojections appear to be reasonable, thenear-term job growth will require supportfrom contract awards until the revenuesapproach the Year 5 level.

Business Model

Optonicus will use Rosewood Machine andTool to build the Gigalink mechanical sub-systems and Circuits and Cables (Vandalia,OH) for the control unit supply. Fiberpositioner subsystems, final test and assem-bly, and packaging and shipment will bedone by Optonicus in-house. Radiant Net-work will be an alpha sales channel to thetelecom market, one that it currently services.


Mission Impact

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Funds Requested

TFRDF Request: $ 996,842WCF Request: $ 0

TOTAL Request: $ 996,842Cost Share: $ 996,842


Greenlight Optics, LLC has not receivedprior funding from OTF.

Project Description

Greenlight proposes developing, manufac-turing and marketing a super-telephoto cam-era lens platform (GLOCAT) offeringperformance, size, weight and cost advantagesover commercially available lenses. The cata-dioptric (combined lens/mirror) lens design willhave a 1200mm focal length and f/4 focal ratio(f-stop) to achieve the size, weight and costreductions. OpCon Associates will assistGreenlight with the optical design and UDRIwill assist with military and law enforcementapplications, conduct system testing and pro-vide systems integration expertise. In the 2-year project, Greenlight will optimize the opticaland mechanical design of its current GLOCATprototype, implement a pilot-level manufactur-ing plan, produce pre-pilot units, test unit reli-ability and produce at least 10 (Gen1) units forcustomer evaluations. The Gen1 productlaunch is scheduled within 18 months and anext generation system will be designed andapplication requirements established. A mar-keting partner, Clovis Associates (Fresno, CA)will assist Greenlight in developing its secu-rity system business.

Key Issues

While a functional prototype has been builtand demonstrated its high magnification,high throughput, high image quality andvisible and near infrared imaging capabili-ties, it has not been evaluated as appliedto its targeted applications. Environmen-tal, motion and other field-related issueswill likely need to be addressed as a resultof the customer evaluations planned.

The technical team is well qualified for pro-ducing the proposed product and while themanagement has experience with develop-ing new products, the expansion/transitionof Greenlight from an engineering services


Collaborators

University of Dayton ResearchInstitute (UDRI)

Optcon Design Associates

Air Force Research Laboratory(AFRL)

County Location

Greenlight Optics, LLCLightweight, Large Aperture Super-telephoto Lens

company to product manufacturing and mar-keting adds to the commercialization risk. Themanufacturing equipment and talent neededappear to be well thought out and implemen-tation steps are underway, however, the mar-ket plans are at a more formative stage andwill need to be further developed and final-ized as the project progresses.


Technical Reach

The first prototype GEN1 lens has been builtand tested by Greenlight. The lens has demon-strated the performance specifications desiredand the optical and mechanical design vali-dated. Greenlight uses a unique manufactur-ing process for the primary lens mirror that willneed to be optimized to further lower the costof the mirrors. The lens mount manufacturingprocess, assembly and testing processes alsoneed to be developed and/or implemented. Enduser testing will be done as part of the project.


The Greenlight management and technical teamare made up of former employees of the opticsdivisions of U.S. Precision Lens (Corning Pre-cision Lens and later 3M Precision Optics).Greenlight has established a profitable engi-neering services company and that business,along with the collaborator cost share, providesthe financial resources to support the proposedproject. Commercialization activities will besupported internally, although the managementteam has experience with private equity fundraising if additional resources are needed.


The manufacturing process for the primary mir-ror is a key product differentiator and is held as atrade secret by Greenlight. The technical teamknowhow and expertise also contributes to theIP base. Greenlight is preparing invention disclo-sures related to the lens design and intends tosubmit these after the optimization tasks are com-pleted, as these improvements will constitute themore unique features of the lens design.



None

TFSP 11-801 / Greenlight Optics, LLC


Market Opportunity/PullThe interest in and growth of long-rangesurveillance and personnel/target informa-tion is driven by the needs of the military,homeland security and law enforcement or-ganizations. Market opportunities for sur-veillance products and systems in each ofthese areas represent multi-million dollarpotentials. Currently no commercial prod-uct fully satisfies the requirements desiredfor these markets. Cost and day/night oper-ability are key areas needing resolution andare addressed by Greenlight's system. Asevidenced by the AFRL cost share, militaryinterest in Greenlight's technology exists.There is also a willingness to test the sys-tem by surveillance providers, such as Per-sistent Surveillance Systems. However,customer involvement and evaluations arenot yet fully established and will be pur-sued as the project technical developmentsare completed.

Corporate Stability

Greenlight was founded in 2009 by staff fromU.S. Precision Lens. In 2010 Greenlightachieved its sales target of $1M, was profit-able and grew the company from 3 to 7 em-ployees. It now has 10 employees andprojects doubling its revenue by 2012. It hasproduced customized hardware for its cli-ents, but the lens proposed would be itsfirst commercial product offering.


Greenlight plans on using its relationshipwith UDRI/IDCAST to establish relation-ships with military and law enforcement sys-tem integrators and end customers and withClovis Associates, an electronic securityoriented business development company, toestablish relationships with local govern-ments and security system integrators.Greenlight has also entered into discussionswith a few military contractors and ultimatelya network of resellers, manufacturing repre-sentatives and partner system integratorswill be established.


Cluster Formation

The AFRL and WPAFB interest in surveillancecapabilities has created a growing technologybase in the Dayton/Cincinnati area relating toimaging systems, high definition video sys-tems and high volume data transport.Greenlight adds a long-range imaging tech-nology with capabilities currently not avail-able. IDCAST will be an initial end user of thetechnology and several Ohio organizations arepotential end users. Persistent Surveillance willevaluate the lens for both its stationary (tower)and mobile (air) applications.

Ohio Economics

Greenlight projects sales revenues of $5Mby the end of the 2-year project and $12Mthe following year (Year 3). $20M in revenuein Year 5 is projected from sales of Gen1lens sales and its next generation lens prod-uct. Greenlight will add 14 new employeesduring the project period and additional 12in Year 3. A total of 33 new jobs are pro-jected by the end of Year 5. The timing ofthese projections appears to be extremelyoptimistic based on the current status ofcustomer involvement and evaluations.However, product sales for evaluation andtesting can be expected within the 3 yearsof the project start. A delay in the projec-tions by one year or so appears more likely.

Business Model

Greenlight plans on manufacturing the pri-mary mirror and the metal mounting pack-age for the system at its Ohio facility. It willpurchase the system's glass lenses and gen-eral hardware from commercial suppliers.Greenlight will assemble and test the com-pleted product. The Gen1 product will tar-get high value customer applications wherethe magnification and large aperture featuresare critical. Gen2 and future products will beoptimized for cost-effective solutions forspecific applications.


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Funds Requested




Photon-X, Inc. has not directly received aprior TFP award. It did receive a $1M contractfrom IDCAST to develop a facial biometricaccess control station. This station was suc-cessfully demonstrated in mid-2010 atIDCAST's open house in TechTown.

Two UDRI laboratories that are leveragedin this project were funded with OTFP fund-ing: The technological Advanced CognitiveLab ($500K) and the Signature Science Explo-ration Lab ($750K).

Project Description

Using a technology it developed for build-ing 3D video sensors called spatial phase im-aging (SPI), Photon-X proposes building,selling and supporting interactive videosignage (IDS) systems. The systems will con-sist of Photon-X's VID30 camera (3D) to beproduced in Ohio, sensor, surface and analyticsoftware development kits (SDKs) and the IDSapplication software. The core functionalityof the IDS will be face orientation (customerfocus), customer demographics and customerattentiveness. Advanced functionality will in-clude eye tracking, expression recognition andgesture recognition. The development of theSDKs will be done by Photon-X with assis-tance from UDRI and AFRL, the camera devel-opment by Photon-X and the IDS applicationsoftware by Photon-X, Black Pearl Intelligenceand UDRI. This team has significant back-ground and expertise in the optics and recog-nition software that will be leveraged tointegrate the above component developmentsinto to the proposed IDS system. Upon pro-ducing integrated, fully functional prototypes,customer demonstrations are planned and thePhoton-X manufacturing, business and mar-ket launch plans will be finalized.

Key Issues

The Photon-X solution involves core opti-cal hardware that will be common to theproposed IDS systems. The Software De-velopment Kits (SDKs) provide the vari-


Collaborators

University of Dayton ResearchInstitute (UDRI)

Air Force Research Laboratory(AFRL)

County Location

Photon-X, Inc.Interactive Digital Signage System

ous recognition characteristics desired andthese would appear to differ for the variousend-uses and end-users. The integratedIDS system would require specific applica-tion software. This creates a rather com-plex, although versatile, systemconstruction that would appear to requirea more extensive sales cycle than is typicalwith a simple hardware product. This couldaffect the market projections proposed.

The system cost will be major factor in themarket acceptance of the IDS product. Theability of Photon-X to reduce the currentcost as planned in this project is critical toreaching the market projections proposed.


Technical Reach

Supported by significant prior investments(>$20M) from federal programs, the custom-ized chip that is the core of the SPI is designedand a fabricator selected. Camera prototypeshave been developed and demonstrated andextensive proof of concept testing of the rec-ognition capabilities conducted in the feder-ally sponsored programs. The application ofthe technology to IDS will require the full inte-gration of the camera and softwares into rug-gedized, application specific packages.Customer evaluations and feedback that willallow finalizing the system design will be ac-quired as part of the proposed project.


The project team has significant backgroundand expertise in both camera optics and recog-nition software technologies. Photon-Xprojects it will require another $4M in additionto the $3M proposed project to reach marketlaunch of the IDS system. This additional fund-ing is expected from internal profits, customerfunded projects and licensing revenues (orequity financing if necessary). Photon-X ex-pects to close on a licensing opportunity in2011 that will support the expansion of itsVID30 Solutions Division (VDS) that will pro-duce the IDS system.



None

TFSP 11-814 / Photon-X, Inc.


Photon-X has conducted a through freedomto operate review that led to its acquisitionof a potential interference patent and extend-ing its portfolio internationally. Along withthis patent and trade secret knowledge, Pho-ton-X has 3 additional patents related to theSPI method and movement analysis andseveral patents pending covering the IDStechnology. UDRI has several patents andtrade secrets related to human behaviormodeling and human factor research avail-able to the IDS development.



Overall, digital signage represents over apotential $100B market opportunity. In 2009,the digital signage market was over $4Bgrowing at over 20% per year. While it isdifficult to project how quickly a 3D visual-ization option will capture market share, it isclear that if a competitive price to existingdigital signage can be achieved, the marketadoption will be significant. Photon-X andits commercialization partner, Black Pearlestimates that within 5 years, the market forthe IDS will be on the order of $50M/year.

Corporate Stability

Photon-X was formed in 1999 in Huntsville,AL as an imaging technology companysolely focused on R&D for optical products,

services and solutions based on SPI tech-nology. It established operations in Ohio toleverage the expertise at UDRI and AFRL.Recent annual revenues (under $5M) areprimarily from federally sponsored projects/contracts. The company is profitable andhas a positive cash balance.


Photon-X's VSD operation will partner withOEMs and/or established distributors tomarket its VID30 sensors, cameras and so-lutions. Direct sales to end users such asCyber Dan, a digital signage network pro-vider, and licenses to larger system integra-tors for specific applications are planned.Photon-X has also partnered with Black PearlIntelligence to offer IDS for intelligent net-work advertising.


Cluster Formation

Photon-X established its offices in Ohio toleverage the technical resources residing inthe Dayton region, in particular UDRI andAFRL. The VSD will provide a new sensorand camera product company to Ohio's im-aging sensor cluster. Photon-X expects topurchase its subsystem components fromOhio suppliers. In the longer-term, Photon-X envisions spin-off companies dedicatedto specific IDS applications, but such ex-pectations are premature.

Ohio Economics

Photon-X's VSD will initiate camera salesduring the first year of the project. A com-mitted customer, Seeing Machines willpurchase a number of cameras with eyegaze recognition beginning in Year 2. TheIDS product will enter the market in Year 3and VSD projects revenues of $9M fromall products produced. In Year 5 total rev-enues of $65M are projected with about$50M from IDS systems. Eight new jobswill be created at VSD during the project,growing to 21 new jobs by Year 3 and over100 new jobs by Year 5. The overall salesforecasts are aggressive and the growthof IDS specific sales appear to be overes-timated based on the current technologyand business status.

Business Model

Photon-X plans on providing R&D servicesdirectly to OEMs interested in 3D imagingtechnology. It will also partner with supplyside firms (e.g. semiconductor foundries &integrated device manufacturers) to providespecialized chips to OEMS and to VSD. VSDwill sell product to the OEMs and partnerwith distribution companies with establishedchannels to end use customers. VSD is lo-cated in Ohio and will be expanded to handlethe IDS business.


Mission Impact

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High

High

Low



Funds Requested

TFRDF Request: $ 997,075WCF Request: $ 0

TOTAL Request: $ 997,075Cost Share: $1,345,013


EYZtek, Inc. has not received prior fund-ing from OTF.

Project Description

The project proposes commercializing avariety of Raman spectrometer-based productsover a period of 5 years with market introduc-tion reached within 2 years of the OTFSP sup-ported project. Basically, EYZtec proposesdeveloping, demonstrating and producing aUV Raman, native fluorescence, chargedcoupled device (CCD) and long wave infrared(LWIR) sensor fusion system for standoff im-provised explosive device (IED) detection. TheCCD/LWIR portion of system will complementsoldier vision and standard rangefinder view-ing for performing a wide area search and theUV Raman spectrometer will inspect specificsuspect areas at a closer range. The closerange inspection is aided by a vacuum systemto draw the indicator particles into the detec-tion spectrometer. In addition, EYZtec alsoproposes developing a narrow wavelength(NIR) mini-Raman and CCD fusion system forchemical, biological, drug and explosive(CBDE) detection, a new surface enhancedRaman spectrometer (SERS) with wide areasearch and a cell-Raman (Raman spectrometerintegrated with cell phone technology) for foodand health safety monitoring.

Key Issues

EYZtec plans to offer a variety of productsbased on Raman spectrometry capabilityand its fusion with other optical and sens-ing instruments. While the focus is on IEDdetection for the military, other commercialopportunities are also being pursued. Ad-dressing multiple markets with multipleproduct variations will stretch EYZtec'sproduct development resources and itsmarketing capabilities.


Collaborators

American ThermalInstruments, Inc.

Wright State University

Bluestone Technology, Inc.

County Location

EYZtek, Inc.Commercialization of Human-tech Interactive Sensor Development for IEDDetection and Other Applications

The IED detection system proposed appearsto have been demonstrated and proven interms of basic functionality. Fieldableequipment needs to be constructed andevaluated before the next Technical Readi-ness Levels (TRLs) can be achieved.Achieving the required TRLs that precedeprocurement typically require longer thanthat projected in the project schedule.

EYZtec is attempting to transition from acontract R&D operation to a more a prod-uct-oriented company. It has already de-veloped a line of products, but it does notappear to have been successful in generat-ing significant revenues from these prod-ucts to date.


Technical Reach

Prototypes of the standoff Raman Spectrometer(SRS) and mini Raman Spectrometer (MRS) havebeen created under Army and Navy contractsrespectively and demonstrated to those spon-sors with favorable results. The SRS is estimatedto be at a Technical Readiness Level (TRL) of 5and the MRS a TRL of 6. Typically technology atthese levels are eligible for field-testing, but notyet ready for procurement level support. The cell-Raman spectrometer (CRS) appears to be at aconceptual stage with a field demonstration ex-pected in the 4th year of the project.


The EYZtec technical team has the credentialsand experience to develop the products pro-posed, but it will rely on others for commercialmanufacturing, business and funding support.A contract manufacturer is involved in theproject and initial funding to support the costshare and early commercialization activitieshave been supported through distribution li-censes for the products proposed. WhileEYZtec does offer a line of LED, light prod-ucts, fusion and detection products, it is notclear a business infrastructure to market theseproducts commercially is in place.



None

TFSP 11-841 / EYZtek, Inc.


EYZtec has filed 4 provisional patents for widearea search and CBDE detection. These coverthe outdoor UV Raman and CCD/LIR fusiontechnologies (IED detection), The NIR andCCD fusion system (airport screening), CRSand CCD fusion technology (fingerprint de-tection) and the SERS (wide area search). Italso has 3 approved patents in the area ofsensor fusion plus knowhow embedded in thesoftware codes used.



The market opportunity for the productsproposed is based on the total potentials ineach of the targeted markets. The CBDEdetection market for military and commer-cial applications is in the billions, so only asmall market share capture is significant.Details of specific obtainable markets werenot discussed, but EYZtec's projected pric-ing is competitive with existing equipmentserving the targeted markets and its prod-ucts provide capabilities not currently avail-able. The interest by the military and thetwo distribution licenses already committedare indications of customer interest.

Corporate Stability

EYZtec is an 18-year old company and asuccessful R&D contactor, mainly sup-

ported by military contracts. Its product lineis diverse, but revenues from product salesare not yet a significant source of its rev-enue. EYZtec's ability to commercialize theproducts proposed will rely on additionalfederal contracts and licensing revenues assignificant product sales are projected tobe slow to develop.


EYZtec will use an Ohio contract manufac-turer to produce certain subcomponents forthe spectrometer and fusion products(American Thermal Instruments, ATI), pur-chase other components and assemble thefinal products at EYZtec's facilities. It haslicensed an Illinois-based computer periph-ery supplier to distribute product in selectedstates and a Chinese firm for distribution inChina. Military and law enforcement saleswill be made directly and EYZtec will workwith Fed-Comm, a military technology pro-vider for assistance in this area.


Cluster Formation

EYZtec is using the resources at WSU fortesting and evaluation of its proposed prod-ucts and plans on continued collaborationwith WSU for other products envisioned.Some of the proposed product componentswill come from Ohio suppliers such as the

LIR, NIR laser diode and basic electrical andmechanical systems. The products pro-posed represent unique product offeringthat will be produced in Ohio.

Ohio Economics

EYZtec projects some early prototype salesduring the project period leading to com-mercial sales in Year 3 of $1.8M for SRS andMRS products. In Year 5 additional productsales will be achieved resulting in a projected$6.3M in revenues ($4.3M in MRS sales).Seven new jobs will be created at EYZtecduring the OTFSP project and an additional7 in Year 3 (total 14). By Year 5 new job to-tals will reach 38. ATI projects it will add 11employees to support manufacturing.

Business Model

EYZtec will use a combination of contractmanufacturing and subcomponent pur-chases for its products, but plans on as-sembling the final product at its facilities.Distribution licensees will provide the com-mercial path to market. It will sell directly tomilitary initially, but also is discussing part-nerships with military suppliers.

2011final proposal evaluation · 2012-08-09 · 2011 tfsp final proposal evaluation v two-stage...

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