IMPACT… - Plasma Igniter

Report
IMPACT
Plasma Igniter, LLC
Plasma Igniter, LLC
Jim Smith, Ph.D.
President and CTO
Phone: 304.293.3264
Cell: 304.290.9000
[email protected]
Plasma Igniter, LLC
Plasma Igniter, LLC
What We Do
PI has licensed patented,
proprietary RF-based
plasma ignition systems
Target markets
$3bn US ignition system
market, plus foreign mkts
Target Licensees
Engine manufacturers,
ignition system suppliers
Team
Jim Smith, President
Tom Mahoney, CEO
Drew Lowery, Lead Scientist
IMPACT
Plasma Igniter’s Coaxial
Cavity Resonance
Ignition System is a
disruptive technology
that will make current
spark ignition systems
obsolete.
Plasma Igniter, LLC
How It Works
• Quarter Wave Coaxial Cavity
Resonator (QWCCR) replaces
spark plug
• Custom electronics generate and
control radio frequency
• QWCCR magnifies RF signal into
a cylinder-sized corona discharge
Plasma ignition results in nearly
complete, high-speed combustion…
Plasma Igniter, LLC
Timed Discharge Pattern
Plasma Igniter, LLC
Stoichiometric Condition Burn (φ=1.0)
Spark
Plug
Plasma
Plug
Plasma Igniter, LLC
Lean Condition Burn (φ=0.8)
Spark
Plug
Plasma
Plug
Plasma Igniter, LLC
Passenger Car CAFE MPG
60
56.2
50
40
30
27.5
20
Current CAFE standards require 60% improvement by 2025
10
0
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Plasma Igniter, LLC
IMPACT…On Fuel Economy
Plasma Igniter’s Technology could achieve
the needed 60% improvement in MPG by
efficient combustion of lean fuel mixtures.
• Past independent tests show strong
combustion at 80% lean, e.g. 20% fuel
savings.
• Current testing will determine lean limit,
but 60% or more in fuel savings is possible.
Plasma Igniter, LLC
IMPACT…On Emissions
Plasma Igniter’s Technology reduces emissions
from lean combustion at lower temperatures.
• Plasma ignition results in “cool” combustion
compared to spark ignition.
• Result is virtual elimination of NOx.
• More complete combustion of lean fuel
could virtually eliminate unburnt
hydrocarbons.
Plasma Igniter, LLC
IMPACT…On Emissions
Engine testing now underway at WVU’s
CAFEE will determine specific emissions
results. Preliminary analysis shows
potential to simplify or to even
Eliminate the Need for
Catalytic Converters
Plasma Igniter, LLC
Market – New Engine Applications
• The U.S. market for automotive ignition
systems is nearly $4 billion
• Industrial, stationary, recreational, etc.
engines all have ignition systems, representing
another multi-billion dollar market
• PI offers greater performance, plug & play
technology at similar cost
• Foreign markets create additional multi-billion
sales.
Plasma Igniter, LLC
Aftermarket
Plasma Igniter has the only known technology
that will increase fuel economy and lower
emissions for the millions of existing sparkignited engines!
Plasma Igniter, LLC
License-based Business Model
• Plasma Igniter, LLC has an exclusive license
– Technology developed at West Virginia University
– Licensed by ATA, LLC (Jim Smith, principal)
• PI, LLC will license to OEMs and Tier suppliers
• Licenses likely based on market segments
– Construction & agricultural equipment
– Recreation vehicles
− Automotive
– Marine vehicles
− Aircraft
– Stationary industrial engines
• Licenses also likely based on geography
Plasma Igniter, LLC
A Possible License Scenario
Assumptions:
1. One license for U.S. passenger cars
2. U.S. new passenger car sales: 15 million/year
3. Wholesale cost of PI’s ignition system: $80/vehicle
4. Royalty rate of 25% (not atypical in automotive)
5. Market penetration of 10% after 5 years
6. License fee of 25% of projected 5 year revenue
Plasma Igniter, LLC
Resulting US License/Royalty Income
$30,000,000
$25,000,000
5-Year Total: $112.5m
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$Year 1
Year 2
Year 3
Year 4
Year 5
Plasma Igniter, LLC
Investor ROI from this Scenario
Reminder: This scenario is based on one license in one
market.
Assumptions:
1. 10% royalty to ATA
2. $5m retained for continued product development,
legal fees, license development, etc.
3. Leaves $96,250,000 for distribution to investors, or
$96,250 per unit
4. Current unit price is $10,000
5. Equivalent CD return would require 57.2% interest
rate
Plasma Igniter, LLC
Progress to Date
• The result of a 20 year on-going R&D program
• 2 Patents Issued, 1 continuation-in-part, plus 3 additional
invention disclosures for global patent submission
• Development work currently ahead of schedule
• Have raised $500k in investment capital, used to
– Meet terms of license agreement with WVU and ATA
– Begin industry-recognized live engine testing at CAFEE
– Refine electronics, buy parts
• Oral commitment for more than $1m
• Additional investment required to maintain schedule
Plasma Igniter, LLC
Use of Proceeds (ROM)
ATA License / Assignment Fee
$100,000
Intellectual Property, Licensing legal fees
$525,000
Development
Engine Testing
Electronics, QWCCR Prototypes
Software
$750,000
$550,000
$100,000
$100,000
Vehicle and Field Testing
$200,000
Administrative, marketing, and operating costs
Marketing
Consulting and Professional fees
Administrative
Travel
Personal Services
$425,000
$75,000
$100,000
$10,000
$55,000
$185,000
Total
$2,000,000
Plasma Igniter, LLC
Key Take Aways
Plasma Igniter’s Ignition System provides:
1. Superior Performance to all known competitors:
better fuel economy, lower emissions, multi-fuel
combustion capability
2. Fine ignition control based on real-time data
3. Proprietary customizable ignition system software
4. In-cylinder data will unleash new creativity
5. Potential market is multi-billion
6. Replacement of the current ignition system is
inevitable
Plasma Igniter, LLC
Call to Action
In 2013, PI, LLC will complete development;
conduct independent, EPA recognized
performance testing; market and negotiate sublicenses.
• Asking $2.62m in return for 30% ownership
• PPM and related documents were issued
March 2013, revised in November 2013
• $500k raised to date
Plasma Igniter, LLC
This is our opportunity
to have an enormous…
IMPACT
It’s In Your Hands!
Plasma Igniter, LLC

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