Ryan Stewart R. Scott Blamey Jack Vu Ben Schlesinger Stuart Truax

Volatile Organic Compounds

Definition

Health Effects of VOCs

•Dizziness•Headaches•Allergic Reaction•Nausea•Vomiting•Visual Disorders•Memory Loss

•Irregular Heartbeat•Liver Damage•Kidney Damage•Anemia•Nervous System Damage•Leukemia•Death

Health Effects

Contamination

EXPLANATIONTotal concentration, in micrograms per literNo detection or less than 0.020.02 to less than 0.20.2 to less than 11 to less than 1010 or greater

0 5 10 15 20 25 30

Public Wells

Domestic Wells

Detection Frequency (percent)

Concentrations below MCLs

Concentrations greater than MCLs

Well Types

MCL = Maximum Contamination Level

How are VOC’s currently tested?

Sampling & Testing

CMOS-Based Sensor System

Core Technology

Lab-on-a-Chip

Competitive Advantage

• Eliminates the sample collection process

• Can be left in the water.

• Can monitor the water continuously.

• Huge savings over current methods.

Advantages

Intellectual Property Protection

Core Technology

• Patent Protection(Filing expected fall 2011)

Silicon Sensor

• Trade secret protection

Read-Out Circuitry

• Patent Protection(Filing expected fall 2011)

Sensor Enclosure

Year

2

Management

CEORyan Stewart

CROStuart Truax

Research Assistant

Research Assistant

CFO

Marketing Assistant

CBDOCOO

R. Scott Blamey

CCOBen

Schlesinger

CLOJack Vu

Market

156,000U.S. Public Water Systems (PWSs)

54,000Community Water Systems

93%of Population

Semiconductor Fabrication

PCB and Packaging Assembly

3rd PartyMonitoring & Management

Value Chain

Community Water Systems

Consumers

Private Wells

Adoption

• Flexibility in decision making• Low risk tolerance• Understaffed• Mildly budget conscience

Decision Maker Profile

• EPA mandated MCL’s• State testing requirements• Existing relationship• Customer service• Reliability

Adoption Drivers

Competition

Competitive LeaderHach Company 1,100 Employees$144 Million Revenue

Largest CompetitorAgilent Technologies, Inc.20,000 Employees$5.4 Billion Corporate Revenue

Closest CompetitorAnalytic Systems International KESCO

• Continuous VOC monitoring

• 34” x 24” x 10”• 200 lbs.

Product Features

Price Advantage

Production MaterialsSilicon CMOS (i.e. die) 0.60$ Die-level Packaging 10.00$ PCB 10.00$ System Casing 1.00$ Other Electronics 1.00$

Labor 0.05$ Fab and Assembly 10.00$

TOTAL 32.65$

Production Cost per Unit

PWS Savings, 3rd Party Profit

GCMS Ethosense $-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Cumulative costs for GCMS

Cumulative costs for EthoSense

Cost of Goods/Services

Profit

Value Created

Economic Value Created (10 Years)

2012 2013 2014 2015 2016 $-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

Projected Revenue

Forecasts

Projected Cash Flows

Net Present Valueof 5 Years Cash Flow

Discounted at

$7.5 Million

30%

2011 2012 2013 2014 2015 2016 $(8,000,000) $(3,000,000) $2,000,000 $7,000,000

$12,000,000 $17,000,000 $22,000,000 $27,000,000 $32,000,000 $37,000,000

Net Income

Cumulative Net Income

Risk

Risk Mitigation Strategies

Technical Risk

Insufficient product life

Exploring new packaging methods

Operational Risk

Inability to partner with 3rd party integrator

Product prototype, pilot

program

Political Risk

Agency complacency

Compliance Officer

STRA

TEGY

IS

SUE

Summary

VOC Contaminated WaterDeadly

VOC Water ContaminationOn the Rise

Continuous Monitoring NecessaryBut Cost Prohibitive

Increased EPA VOC RegulationsComing Soon

EthoSense VOC MonitorsReal-Time, Added Customer Value

EthoSense VOC Sensor TechnologyNovel Patentable Technology

Global NeedOpportunity

Ryan Stewart R. Scott Blamey Jack Vu Ben Schlesinger Stuart Truax