sensors in motion™ presentation

1

SENSORS IN MOTION™ / SIM™PARISS™ PRESENTATION

November 15th 2010

Sensors In Motion™ Limited Liability Company©2010

2

What is PARISS™ ?

• PARISS™ stands for Protective and Reactive Integrated Sensors System.

• PARISS™ will be a wearable smart Microelectromechanical System outer device for the knee that will be embedded with wireless sensors to detect, prevent, and mitigate ACL, MCL, LCL, and PCL strains, and tears as well as wirelessly monitor, and transmit knee movement data in near or real-time to hand held mobile devices or laptop computers.


3

PARISS™ will address four primary areas:

• The proposed sensors will cover exactly the need to provide additional information in order to supplement our natural sensors and also improve our balancing ability and thus prevent injuries, and reactively counter any blunt-force-trauma or stretching.

• Balance and Physical Activity Levels Information Data - PARISS™ will also transmit the sensed signals to the user’s cell phone or other wireless device; process the transmitted signals real time; provide the user with real-time information on his/her balance and physical activity levels and the associated warning signs of the ligaments action via sensors.

• RFID Monitoring Network - PARISS™ will interconnect its sensors with commercially available RF devices to form a real-time monitoring network, and record critical signals related to the balance and equilibrium of the user.

• Performance - Optimize performance particularly in terms of accuracy and battery life.

MEMS Sensor


4

Overarching Goals

• Our Goal is to introduce revolutionary products into the market that will create a paradigm shift in the way we view personal protective equipment for the body because our sensors will literally think for themselves.

• Our marketing and product strategy will be based on performance and quality because PARISS™ needs to be ready within a critical split-second when called upon even before the user is aware of the critical nature of his/her situation.

• SIM™ intends to aggressively compete and market our wearable smart sensor devices internationally in the personal protection equipment industry (PPE) which is a multibillion dollar international market regulated by OSHA.


5

Knee Injuries

• 'In 2006 the US Bureau of Labor Statistics (BLS) recorded over 95,000 serious knee injuries, comprising 8.1 percent of all serious injuries.' - Workplace Injuries and Illnesses, 2008 news release issued in October 2009.

• Some studies estimate that as many as 175,000 ACL reconstructions are done each year in the United States within the Sports Industry alone.

• Approximately 500,000 meniscal surgeries are performed each year.

• Female Athletes - An estimated 200,000 ACL injuries occur annually in the United States. Approximately 60,000-75,000 ACL reconstructions are performed each year.“ - ACL Injuries in Female Athletes,” by You Can Be Fit, Inc. All Rights Reserved.

• Senior Citizens - According to the Centers for Disease Control and Prevention (CDC), "each year, one in every three adults age 65 or older fall.

MEMS Pressure Sensor


6

Cost of Knee Injuries

• According to Costhelper.com, knee replacement surgery, for individuals without insurance, can cost around $35,000 or more, as of early 2008. Contrary to this, Kneereplacementcost.com suggests that the total cost may range between $45,000 and $70,000.

• For individuals with health insurance, out of pocket expense can vary significantly depending on the type of insurance. For instance, a patient with insurance may have to pay additional $4,257 including coinsurance and deductibles.

• A 2003 Liberty Mutual Study of Knee Injury Statistics found that there were 4.3 million work related injuries with 1.3 million injuries that required time off work. About half occurred from MSD sprains and strains. Knee injuries are a significant portion of MSD injuries (105,860 workers injured a knee). There was significant lost work days from knee injuries that averaged 14 days.


7

Is there a sufficiently large market need and does demand exist for PARISS™ to reach profitability and positive cash flow?

• According to a Specialists in Business Information (SBI) report dated 2008, the Worldwide personal protective equipment (PPE) market reached $16.1 Billion in 2007 while the U.S. market reached $6.4 billion in 2007 growing seven percent over the 2006 level of $ 5.9 billion.

• SBI forecasts the U.S. market for personal protective equipment to grow at a CAGR of 3% to reach the $7.2 Billion mark by 2012.

• Body protection grew at a CAGR of 10% for the 2002-2007, period. It reached the $2.8 billion mark, and accounted for 44% of the total personal protective equipment market. Over the years this category has seen its share of the market grow at a steady pace from just 30% in 1997 to 43% in 2002.

• SIM™ will focus on a special kind of customer; the person who needs and wants very high quality knee protection due to a predisposition that that customer has in regards to serious knee injuries. Whether it’s due to the physical nature his/her job, or past medical knee problems. What is important to the customer is peace of mind in knowing that there is protection against potential catastrophic knee injuries due to impact, ligament strains, and tears.

- Specialists in Business Information (SBI), Personal Protective Equipment in the U.S., February 2008, SBI 1200 Rockville Pike, Rockville, Maryland, www.sbireports.com -


http://www.sbireports.com/

8

Product Innovation Drives the PPE Market

• Product Innovation is what continually drives the PPE market, and innovation involving nanotechnology and MEMS is precisely what Sensors In Motion™ hopes to exploit. There is literally a gold rush to develop new and better PPE products using Nano and MEMS technology.

• SIM™ will succeed based upon the capability of its products. Our wearable smart sensor solutions will be competitively priced, easier to implement, provide faster performance and reliability with a robust and stable design. Sensors In Motion™ expects high future market share in our PPE market segment (body protection).

• Our main priority is to provide customers and business partners with the utmost unparalleled quality and reliability.

Sensimed’s prototype contact-lens sensor has been developed for the continuous monitoring of fluctuations in intraocular pressure of the eye in glaucoma patients.


9

Global Demand for PPE

• Globally, there will continue to be a large market for PPE, not least because PPE usage is not optional. Moreover, the global PPE market should rise as economic conditions improve. Demand will be further underpinned by additional legislation and toughening regulations.

• There is a bright future for personal protective clothing and other personal protective equipment (PPE) - especially products which incorporate emerging technologies and materials such as nanotechnology, smart technology and hybrid materials - new research claims.

• According to a report from Textiles Intelligence, much PPE is expensive relative to ordinary work-wear because, by necessity, it is more sophisticated in terms of materials used and technologies employed. But PPE also provides cost benefits in the form of reducing the number of work-related injuries or illnesses and their associate costs.

MEMS RFID Sensor


10

Global Demand for PPE (Cont.)

• Occupational Safety and Health Administration (OSHA) in the USA estimates that about US$4 are saved for every US $1 spent on an effective health and safety program.

• PPE also provides benefits by saving lives. According to the International Labor Organization (ILO), more than 2m people worldwide die of work-related accidents and diseases each year. Furthermore, this figure could represent a vast underestimate because of poor reporting in some countries. People who work in industries such as construction, manufacturing and agriculture are routinely exposed to potentially harmful situations or hazards.


11

Does SIM™ have a logical and feasible plan for reaching the PPE Market?

• SIM™ will market directly to end users as well as to commercial industries, organized athletic leagues, health industries etc. SIM™ can do this for end users who are most at risk for serious ACL, MCL, LCL, and PCL tears and strains in their occupations; such as police, firefighters, correctional officers, and soldiers. Weekend athletes are extremely vulnerable since many be more out-of-shape than those who play professionally, and would therefore be more prone to these types of injuries. These users would appreciate the advantages PARISS™ by being able to use the best and most effective technology in knee injury protection.

• NFL Football Players earning in excess of millions of dollars per year to play are many times lost for the season due to ACL, MCL, LCL, and PCL tears. Recovery is often slow. PARISS™ could save the league millions in lost revenue, and time as well as actively monitoring recovery, and providing real-time diagnosis for these types of injuries. The same benefit can be applied to World Cup Soccer Players, NBA and NHL Hockey as well as High School and College Athletic Teams.


12

Does SIM™ have a logical and feasible plan for reaching the PPE Market? (Cont.)

• PARISS™ will also provide a benefit to the medical orthopedic community by providing real-time assessments of knee movement to medical professionals. This benefit will also drive demand for our product. Therefore, SIM™ will develop a marketing plan to increase the awareness of the clinical advantages of our devices. SIM™ will co-market its brand as a necessary technology for healthcare diagnostics.

• SIM™ plans to market PARISS™ through aggressive advertising by Creative Direction. Creative Direction is a marketing communications company headquartered in central Indiana that is dedicated to help businesses grow. They have provided outstanding marketing communications solutions for their clients since 1993 and have an excellent track record of delivering a return on our clients' marketing dollars. They specialize in direct marketing, and have extensive experience working with diverse clients in a wide range of industries regionally, nationally and internationally. Their primary goal is always to maximize our clients' shareholder value. http://www.creativedirection.com/about.html.


http://www.creativedirection.com/about.html

13

Skills to Execute our Plan - SIM™ Management Team

Martin Lozano – SIM™ Owner & CEO

Martin’s experience stems from over 18 years of acquisition logistics and engineering experience for the Army and Navy as a federal employee. He has managed and directed multi-million dollar acquisition logistics efforts for weapon systems development that included: The JAVELIN Anti-Tank Missile System, U.S. Army Aviation Missile Command Alabama; U.S. Army Maintainers Remote Logistics Network (MRLN) Tank Automotive Armaments Command Michigan; In Service Engineering Agent efforts for NSWCCD Crane Indiana for the Component Electro Optical Laser System (CELS) EO/IR for the new U.S. Navy AEGIS DDG-1000 Destroyer; Logistic and Integration efforts for the new Marine Heavy Lift CH-53K Composite Helicopter, Naval Surface Warfare Center Crane Indiana; Counter-Measure Missile Testing, Center for Countermeasures, White Sands Missile Range New Mexico; CSA MK2/3 Defensive Countermeasure System SSGN and SEAWOLF Class Nuclear Submarines, Naval Surface Warfare Center Crane Indiana, and Countermine Vehicles; Buffalo, JERV, RG31, U.S. Army TACOM.

Martin Lozano was born in San Antonio Texas on April 27, 1958. He received his Doctor of Jurisprudence J.D. from Indiana University Mauer School of Law, Bloomington Indiana in 1992 and earned his B.A. from Purdue University, West Lafayette Indiana in 1989.


14

Skills to Execute our Plan - SIM™ Management Team (Cont.)

Dr. Dimitrios Peroulis – Associate Professor, Purdue University / SIM™ Primary Investigator

Dimitrios Peroulis (S’99–M’04) received his PhD in Electrical Engineering from the University of Michigan at Ann Arbor in 2003. He has been with Purdue University since August 2003 where he is currently leading a group of graduate students on a variety of research projects in the areas of RF MEMS, sensing and power harvesting applications as well as RFID sensors for the health monitoring of sensitive equipment. He has been a PI or a co-PI in numerous projects funded by government agencies and industry in these areas.

Dr. Peroulis is currently a key contributor in two DARPA projects at Purdue focusing on 1) very high quality (Q>1,000) RF tunable filters in mobile form factors (DARPA Analog Spectral Processing Program, Phases I, II and III) and on 2) developing comprehensive characterization methods and models for understanding the viscoelasticity/creep phenomena in high-power RF MEMS devices (DARPA M/NEMS S&T Fundamentals Program, Phases I and II). Furthermore, he is leading the experimental program on the Center for the Prediction of Reliability, Integrity and Survivability of Microsystems (PRISM) funded by the National Nuclear Security Administration. In addition, he is heading the development of the MEMS technology in a U.S. Navy project (Marines) funded under the Technology Insertion Program for Savings (TIPS) program focused on harsh-environment wireless micro-sensors for the health monitoring of aircraft engines. He has over 110 refereed journal and conference publications in the areas of microwave integrated circuits, sensors and antennas. He received the National Science Foundation CAREER award in 2008. His students have received numerous student paper awards and other student research-based scholarships. He has also received eight teaching awards including the 2010 HKN C. Holmes MacDonald Outstanding Teaching Award and the 2010 Charles B. Murphy award, which is Purdue University's highest undergraduate teaching honor.


15

Our Margins are Sufficiently Large Enough to Support Our Marketing Plan

SIM’s™ financial plan depends on important assumptions. The key underlying assumptions are:

• A slow start as we educate potential customers about this new technology.

• In contrast, we assume steady growth once the efficacy of our product and services are demonstrated.

• That there are no unforeseen changes in technology which could make products immediately obsolete, while newer technologies and in-house innovations will only advance the scope of our product line and target markets.

• Access to equity capital and financing sufficient to maintain our financial plan as shown in the tables.

• Ability to self-fund further growth after Start-up financing is secured.

• Maintaining or improving profit margins based on lower costs per unit for higher quantity production runs.


16

PATENT & INTELLECTUAL PROPERTY RIGHTS

• There are various possible scenarios regarding ownership of the patent rights and intellectual property of the Wearable MEMS Enabled Protective System.

• One scenario is that Purdue University would own the Patent for the PARISS™ wearable sensor device developed through Dr. Peroulis' team with all intellectual property owned by Purdue. Purdue University would then lease the patent rights to Sensors In Motion™ for a reasonable fee. Sensors In Motion™ would own all patent rights pertaining to the protective reactive device and all intellectual property associated with the this device.

• Another possible scenario -preferred by Sensors In Motion™ - would be co-ownership of all patent rights between Purdue University and Sensors In Motion™ for both the sensing and reactive devices.

• Determination as to which option will be determined at a later date through negotiations with Purdue University and Sensors In Motion™. Certainly the opportunity to share patent ownership of the system with Purdue would be strengthened if research and development was fully invested.


17

Conclusion

• Globally, there will continue to be a large market for PPE, not least because PPE usage is not optional. Moreover, the global PPE market should rise as economic conditions improve. Demand will be further underpinned by additional legislation and toughening regulations.

• There is a bright future for personal protective clothing and other personal protective equipment (PPE) - especially products which incorporate emerging technologies and materials such as nanotechnology, smart technology and hybrid materials-

• According to a report from Textiles Intelligence, much PPE is expensive relative to ordinary work-wear because, by necessity, it is more sophisticated in terms of materials used and technologies employed. But PPE also provides cost benefits in the form of reducing the number of work-related injuries or illnesses and their associate costs.


18

Conclusion (Cont.)

• SIM™ will specifically target PARISS™ towards industries; such as logging, construction, manufacturing, shipbuilding, mining, etc., as well as federal, state, and local employees whose occupations place them at risk for knee injuries. Some of these occupations include: military personnel, law enforcement officers, fire fighters, and correctional officers. SIM™ intends to aggressively pursue secondary markets in the sports industry in both professional and amateur athletics. We also foresee additional markets in the Health Industry for post-operational knee surgery patients and Senior Citizens who may be at a high risk for knee injuries.

• We predict growth of at least 10 percent in the first year after we begin full scale operations with sales exceeding 10,000 PARISS™ units and 16,000 MEMS units without the PARISS™ Hardware.


19

CONTACT

Martin LozanoOwner-CEO

Sensors In Motion™(812) 320-9389

[email protected]


sensors in motion™ presentation

Health & Medicine