flux drive pitch deck 6 4-2014 ver1.3
DESCRIPTION
SmartCOUPLING providing both substantial Energy & Maintenance Savings!TRANSCRIPT
SmartCOUPLINGs™World’s only ‘Drop-in’ solution for
Providing Energy & Maintenance Savings
‘Right out of the Box’
Save Energy!
• Company overview• The Problem - Excess
design margin & Wasted Energy
• SmartCOUPLING™ solutions
• Market size & strategy• Existing customers,
partners & traction• Financial details• Investment
Opportunity
AGEN
DA
2
Company Snapshot
What do we do?
Target Markets
Partners/Customers
Patent Issued
Manufacture the World’s first energy saving SmartCOUPLING™ for commercial and industrial motor driven systems
Industrial and commercial motor driven applications: Waste Water, Oil & Gas, Mining, Marine, HVAC, Manufacturing, etc.
Veolia, Boeing, Weyerhaeuser, PEMAX, Vulkan, BAO Steel
Value proposition •Energy Savings•Reduced maintenance•Rapid Return on Investment
Employees
Headquarters
2007 (first product)
15
Kent, WA
Save Energy!
3
THE
PRO
BLEM
• Excess Design/Capacity Margin (ECM) - built into all electric motor driven systems– Design Engineers oversize ALL systems for future demand
and provide a factor of safety margin– Matching pump/blower flow to the actual system demand
- saves energy ($) and reduces maintenance ($)
• Existing Coupling solutions DON’T address the Major Problem – Wasted Energy & Excess Maintenance $
Wasted Energy! In Motor Driven Systems
Save Energy!
Electric Motor + Direct Connect to Pumps or BlowersExisting Couplings -
4
COUPLING EVOLUTION
Save Energy!
Para
digm
Shi
ft
HIGH MAINTENANCE / NO ENERGY SAVINGSExisting Products – only 1 / Full Speed Operation
NO MAINTENANCE + ENERGY SAVINGS
(Reduce ECM = Energy Savings)IMMEDIATE PAYBACK!
World’s ONLY drop-in Solution
Past (not SMART at All) Present (very SMART)
- A true Paradigm Shift, the World’s ONLY SmartCOUPLING™ -
5
THE
SOLU
TIO
NThe Flux Drive SmartCOUPLING™: Benefits• Energy savings!
– SmartPOWER™, Air gap spacers reduce load speed to provide SmartPOWER™ savings
– Soft-start feature also reduces kW demand and charges
• Maintenance savings!– No touching parts– Misalignment & vibration
corrected for long seal and bearing life
– Operates in any environment
• Never Wears Out!
Air gap shown in
red
Save Energy!
Int’l Patent Protection – Flux Drive owns all IP
Gap 1 Gap 2
– Energy Saving Feature by Adjusting Air Gap (‘SmartPOWER’ reduction)
– Benefits from Affinity Laws on Pumps and Blowers: • 5% less speed - capacity = 10% less power• 10% less speed - capacity = 20% less power
– Payback = Typically Less than 2 years!
Load
Sha
ftThe Flux Drive SmartCOUPLING™: SmartPOWER™
Save Energy!
GAP 1 = $8,760 SavingsGAP 2 = $17,520 Savings
100kW Electric Motor – Single Speed, Power Cost (10 cents/kW-hr): 24h x 365d = $87,600 / year to run at full power!
MotorShaft
SAVE
S EN
ERG
Y
Perm
anen
t Mag
net R
otor
Indu
ction
Indu
ction
Indu
ction
Indu
ction
Roto
r
Roto
rRo
tor
Roto
r N - S
S -N
Permanent Magnet Technology
Induction Circuit Technology
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• Accepts compound Shaft Misalignment
• Accommodates Thermal Growth
• And NO transfer of vibration
• No Maintenance Required
• Torque transfer across Air Gap
• NEVER wears out!
Save
s M
aint
enan
ceSave Energy!
Air Gap = No Touching Parts
MotorShaft
LoadShaft
Perm
anen
t Mag
net R
otor
Indu
ction
Roto
r
Indu
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Roto
r
SmartCOUPLING™
COM
PAN
Y
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Team:– Philip ‘Chip’ Corbin, CEO: Inventor & primary
patent holder. 30+ years experience with rotating equipment & mechanical design
– John Watson, President: 35+ years executive level experience with proven ability to achieve revenue growth & profitability
– Libby Dunkin, COO: 30 years product development experience in high growth companies
– Matt Carlson, VP Sales/Marketing: 25 years tech & clean-tech marketing experience including energy efficient products/services
Save Energy!
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Recent Company Milestones:– 2007: Flux Drive – Product Ready, 1st Patent Issued - First Sales– 2008-2012: Initial markets cultivated, ASD product launched &
refined with proven product acceptance– 2012 Product Certification Attained, American Bureau of Shipping– 2013: ASD scaled to 300hp, SmartCOUPLING™ released to
125hp– 2013: SmartCOUPLING™ patent issued - USPTO– 2014: Marketing launch and scaling of SmartCOUPLING™ to
500hp
Patents:– 11 patents in portfolio with applications in over 35 countries– Issued patents in USA, Canada, Mexico, South Korea,
Singapore, Australia & New Zealand
COM
PAN
YSave Energy!
10
THE
MAR
KET
Market Size• $90 billion addressable market for Motor Driven Systems / potential
energy savings on existing pumps, blowers and other equipment • Flux Drive products address the entire Motor Systems market
Save Energy!
2014 MarketingM
ARKE
TIN
G• Veolia Case Study (written by Veolia staff)–
May “Pumps & Systems” publication
• 3 published case studies – brand approval received from Veolia, Kolon, and Sierra Pacific
• Advertising: 100,000+ impressions in April/May
− Modern Pumping Today – Full Page
− Pumps & Systems: 2/3 page
− Upstream Pumping: 1/3 page
• Ongoing advertising June-Dec. +
• Tradeshows (+ partner shows)− Navy, Oil & Gas, Forest Products
Save Energy!
U.S. Distribution PartnersTR
ACTI
ON
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International and Vertical Markets (Fast Sales Cycle, Stocking Inventory, World-wide Need)
Oil & Gas:
Military/Marine:
Mexico/Latin Am:
S. America:
SE Asia:South Korea:
Save Energy!
TRAC
TIO
N
13
Flux Drive Customers
Sierra PacificIndustries
Save Energy!
TRAC
TIO
N
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• Global leader in water/water treatment− $31 Billion Annual Sales− 300,000 employees globally
• SmartCOUPLING, Stickney WWTP Dec. 2013
− Completely solved misalignment problem (The GOAL)
− Motor runs cooler (2nd GOAL)− 8% annual energy savings with no
impact on production (BONUS!)• Repeat Orders In Process – Global
Opportunities
Customer InstallationsTR
ACTI
ON
15
100hp – Hot Oil Pump
50hp Dye Pump
200hp Water Pump
50 hp Cooling Tower Fan
The SmartCOUPLING™ ASD (IntelligentCOUPLING)
50hp water pump 200hp Induced Draft Fan
Save Energy!
16
Man
ufac
turin
g How We Meet the Demand:
• Contract Manufacturer already in place (Kent, WA)
• International Supply Chain in place and expanding with family of product sizes expanded to 500 HP (Q3, 2014)
• Flux Drive Int’l business units expand to support demand regionally (FD China, FD Mexico, FD Singapore, FD Europe, FD India) – 3 of 5, in process
• On going Certifications: ISO 9001, ABS (American Bureau of Shipping), American Petroleum Institute(API) and US Navy
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FIN
ANCI
ALS
Projection Details
Projected financial performance for North and South America• Other Business Units to add Revenue: FD China, FD Singapore,
and FD India. Business Development is now under way.• Additional revenue from international growth will be provided
upon request
Save Energy!
For financial details, please login to Crowdfunder using your accredited investor account
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OFF
ERIN
GCurrent Round
Use of Funds:• Expanded sales/marketing efforts – Int’l business development• Accelerate product fulfillment capabilities to meet growing Sales!
Securities: Series C Preferred Stock
Valuation of the Company: $6,000,000 pre-money
Amount of offering: Up to $4,000,000 / Raised $2.3M to date Close Round by August 2014
Consideration: Cash Number of shares: 12,472,715 shares Price per share: 0.3207Investors: Accredited Investors
Save Energy!
Exits:• Acquisition by Large Motor or PT company • Public Offering (of Flux Drive global business units)
