Hypotheses:

• Improved novel (integrated) thermal dissipation technology can significantly improve LED lighting performance and reduce cost

• Our technology allows direct replacement of commercial high lumen but low efficiency incandescent bulbs with LEDs without light quality/output compromises

• This can deliver a scalable business model

ARKA LightsHigh Performance Heat Dissipation Technology for LED Lighting

Reduced number of LEDs

Higher lumens in the same form factor

Commercial Customers

-Replacement Lamps

- Indoor Applications

Trade Presence, publications, shows

Direct Sales to Institutions

Web based demos, education

OEMS

Luminaires Manufacturers

System integration

Requires no infrastructure changesASME,

Professional Groups

Environmental conscious Groups

Systems Design

IP

Government Agencies (DOE)

Cost of Sales

LED manufacturers

Luminaire Manufacturers

Developments Costs

Sale of Products

Suppliers Certifications

Awareness Building

Increased reliability

Experienced manufacturer as a partner

Component supplier costs

CANVAS FOR ARKA – Version 1

We’re talking to (some combination of): OEMS Architects (Rita Koltai – Koltai Lighting Design) Technical Experts/Consultants (Stanford

University), Prof. Robert Davis, (CMU) Lighting designers and manufacturers

(Greenray Lighting) Lighting Distributors (Stanford Lighting) Facility Managers (Sheraton Hotel) Retail Outlets (Pottery Barn)

GETTING OUT OF THE BUILDING

1) Prof. Robert Davis, Founder of CREE – a leading LED company- Heat transfer is a major issue. Not sure whether the internal phonon reflectance may in fact be the leading thermal limit.

2) Prof. James Harris, EE Department, Stanford University- Heat transfer issue – The phonon reflection increases significantly with the doping of new materials. This reduces thermal conductivity of the LED. Eventually it becomes the limiting factor. Need to include reduction in the thermal conductivity in the heat transfer modeling.- Bought six PAR38 lights for his family room last week. Wants them to last 20-30 years as changing them with a ladder was a major hassle.- Light intensity was lower than incandescent bulbs it replaced. Not happy about that.

CUSTOMER FEEDBACK

3) Mr. Mo, Co-owner of Greenway Lighting, Santa Rosa, California

- T8 lighting (tube light replacement) is their main product. PAR38 replacement is needed, but not available today. They recommend PAR30, a much lower intensity product. The available PAR38 do not meet the lighting intensity and light quality demands for replacing the current incandescent lights.- Replacing light bulbs is a major hassle. Costs $400 to rent a cherry picker to replace bulbs – makes very expensive. Need to have longer life.- Offered a business proposition to do thermal design of his LED lights on a consultation basis (Not an attractive business model for us due to very low returns and limited scalability).

CUSTOMER FEEDBACK

4) Prof. George Tayo, ME Center for Design, Stanford University- LEDs are evolving very rapidly. Thermal issues are similar to PCs – cooling will remain major issues as performance and quality envelope will continue to expand.

5) Mr. Bruno (maintenance supervisor) – Sheraton Hotel, Palo Alto - Use 100’s of PAR38 in this hotel. Replace every 6 months or so. Would be happy with longer life product - Current weight of LEDs might prevent them from being used in establishments with high ceiling. (Heavy aluminum heat sink adds significantly to weight).

CUSTOMER FEEDBACK

6. Pottery Barn Staff – Pottery Barn, Palo Alto Title 24 has changed the procurement patterns of corporate

headquarters regarding light fixtures – no dimming or two-way switches (Need to become familiar with local laws)

Use incandescent lights for all general illumination (counted 34 in front foyer alone) without dimming or daylight control. Extensive use of CFLs in displays (not directional so less suitable for task lighting).

7. Paul (salesperson) – Stanford Electricals - • Advocate of LEDs; largely ‘self-educated’• Indicated that rising prices (~30% in last 6 mths) of fluorescents

(due to phosphor costs) and falling LED prices will boost LED sales

• Indicated unwillingness of smaller retailers to experiment with new suppliers products’

• Highlighted form factor of LEDs and emphasized that products need to be used without changing current infrastructure.

• Seeing significantly increased adoption of LEDs by customers (particularly over last 5 mths)

CUSTOMER FEEDBACK

Lower purchase cost

Higher lumens in the same form factor

Commercial Customers

-Replacement Lamps (PAR38)

- Indoor Applications

Trade Presence, publications, shows

Direct Sales to Institutions

Web based demos, education

Luminaire Manufacturers

System integration

Requires no infrastructure changes

ASME, Professional Groups

Environmental conscious Groups

Systems Design

IP

Government Agencies (DOE)

Cost of Sales

LED manufacturers

Luminaire Manufacturers

Developments and Certification Costs

Sale of Products

Suppliers

Certifications

Increased reliability

Experienced manufacturer as a partner

Component supplier costs

CANVAS FOR LED – Version 2

Reduced weight

Awareness Building

Thermal modeling of LED cooling

IMMEDIATE NEXT STEPS

Conduct further interviews to asap validate value proposition and channel hypotheses OEMS and Institutions Specifiers and Contractors

Begin work on key activities including reduction of technology to practice (prototyping)

SUMMARY

Contacted 8 diverse feedback nodes (experts, customers, supply chain)

Partially validated three components of the initial canvas. Learned more about possible value

proposition. Modified key activities to include thermal

modeling Recognized need for engaging with OEMs

asapDisclaimer – The conclusions drawn here are based on a limited data collected. Further validation will be conducted.

Thank you!

PROBLEMS WITH EXISTING LEDS

Cannot deliver enough lumens to replace existing incandescent bulbs

Heavy weight Low life due to higher temperatures

Our Enhanced Heat Transfer Technology

Higher heat removal ability allows Lower operating temperature Increased lumen intensity per LED Reduced number of LEDs Increased life