MicroGen Energizing the Wireless World June 10, 2010 1 MicroGen Systems, LLC Cornell Business & Technology Park Powering A Smarter Planet ™ BOLT™ Vibrational

microGen

Energizing the Wireless World

June 10, 2010 1

MicroGen Systems, LLCCornell Business & Technology Park

Powering A Smarter Planet™

BOLT™Vibrational

Energy Harvester

Family

microGen


© 2009 MicroGen Systems, LLC. All rights reserved. Proprietary and Confidential.Energizing the Wireless World is a registered trademark of MicroGen Systems LLC.

What we do

microGen


© 2009 MicroGen Systems, LLC. All rights reserved. Proprietary and Confidential.Energizing the Wireless World is a registered trademark of MicroGen Systems LLC.

Vibrational Energy Harvesting: The basic product

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Overview

• Product close to market and in demand– Well-developed on non-dilutive financing – Novel design with patents / patent potential– Extensive technical know-how

• Addressing large and growing markets- “Convergence” of technology and economics….- “Tipping point” in 2011….- Partnering deals already under discussion

• Executing “classic technology commercialization” process– Synthesize the technical and business milestones

microGen

Energizing the Wireless WorldManagement Team

Over 100 years combined experience…~ Balanced team with core skill sets~ Management / Product Development roles~ 18 startups to large companies~ $17 M capital raised ~ 20 product launches

Robert Andosca, Founder, CTO – MEMS Expert; MS/PhD (ABD) UVM

David Hessler, Acting CEO – Serial ENT, Xerox, VC; MS / MBA UMICH

Michael Perrotta CFO/COO – Serial ENT, Kodak; BS Eng, MBA Simon

Junru Wu, Founder, Tech Advisor – Vibration Expert; MS/PhD UCLA

….others being added….

microGen

Energizing the Wireless WorldA Smarter Planet™

Wireless Sensor Applications

microGen

Energizing the Wireless WorldWSN Markets

Military, Asset track

~ $900 M

Industrial

~ $200 M

Civil Infrastructure

~ $200 M

AutomotiveHomeland security

~ $300 M

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88

Market Problem

• Cost of changing batteries is holding back the market

WSN market

Two (2) AA batteries

wireless sensor node

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Solution: Smart Energy

BOLT™Micro-rechargers

and Self-powered batteries

Smallest, highest power density, lowest cost and > 20 year lifetime

Harvesting natural vibrational energy

microGen

Energizing the Wireless WorldBarriers to Entry

• Patent-pending technology– Internationally filed in eight (8) countries

• Deep MEMS design / fabrication experience– Highly manufacturable, low production cost

– Long lifetime w/ > 20 year reliability

• MEMS development cost and time

~ $1.6 M and > 10,000 HOURS currently invested

• Price Can stay ahead of competition– MEMS-chips drop in $$ like computer-chips 10

microGen

Energizing the Wireless WorldMarket Dynamics

Convergence:• Technical

– Lower power sensors….– Lower power radios….– Communication software…– Thin film batteries…

• Economic/business– Energy awareness (green)– Cost of batteries– Disposal/environmental issues– Industry evolution/consolidation/partnering

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microGen

Energizing the Wireless WorldGetting to Market

WSN solutionSuppliers

SystemIntegrators

End Users• industrial• buildings

• infrastructure• automobiles

• planes / trains • security/defense

. . . . • and others

2.

2.

2. Work w/ collaborators

1. Get defined into ref designs

1. 1.

- electronic components

- advanced batteries

3.

3. Deliver product to customers

3. 3.

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Collaborators

Partnering Discussions• Texas Instruments (TX)

• Cymbet Corporation (MN)

• Infinite Power Solutions (CO)

• Widetronix (Ithaca, NY)

• Ember Corporation (MA)

• MicroStrain (VT)

• Dust Networks (CA)

• .........others ……..

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National Attention

Speaking Engagements

“Heat Differentials and Vibrations Generate Power and Start-Ups”, March 9, 2010 “Semiconductor Process Technology Enables Energy

Harvesting Systems”, March 2, 2010

Energy Harvesting & Micro-batteries, 2009

Emerging MEMS Tech & Markets, 2010

Media Coverage and Market Reports

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Financial View--$$

• Losing money now, but…– Will have working prototype on grant funding

• Angel raise “now” (~$750K)

• Modest sales in 2011

• VC raise in 2011 (~$5.5MM)• To cover 2012 market ramp and losses

• Very profitable on ~$25MM in 2015

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Energizing the Wireless WorldImpact to Region

Job creation• Engineering, manufacturing, finance & sales

– 30 positions by 2013 w/ payroll ~ $3 M / year• Continued use of Cornell’s CNF for MEMS prototyping• Central NY-based high-volume assembly, packaging, test

Building region’s reputation as a MEMS Leader• MEMS Cluster – Kionix, Mezmeriz, Widetronix, Advion, Rheonix, Veritag, Primet, . . . . , MicroGen

Wealth Creation

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Energizing the Wireless WorldRecent Milestones

2009 – 2010 Three (3) generations of functional prototypes

$619 K NYSERDA contract awarded

Sponsored by Syracuse Clean Tech Center (NYSERDA)

MOU signed w/ Cornell Energy Materials Center (NYSTAR)

David Hessler joins as Acting CEO (April 2010)

microGen

Energizing the Wireless WorldUpcoming Milestones

2010 – 2011• Alpha-demos ……..…………….. . Q3 2010

• Add staff – Eng, Sales . . . . . . . . . Q4 2010

• First sales . . . . . . . . . . . . . . . . . . Q1 2011

• 2011 revenue…………………………~$1MM

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Exit strategy

Well positioned to be acquisition target of companies seeking low cost, long lifetime battery extender or replacement:

A few examples:• Texas Instruments• Cymbet Corporation• Infinite Power Solutions• Panasonic / Sanyo• General Electric• and many others

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MicroGen Systems, LLCUpstate Central New York

Micro-rechargers and Self-powered Batteries

Generations of Power™

BOLT™

David Hessler, Acting [email protected]

(607) 237-3001 mainwww.microgensystems.com

microGen

Energizing the Wireless WorldA Growing Partner Network

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Appendices

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Energizing the Wireless WorldTarget WSN markets

23Source: Information Resources, 2008

90 M

70 M

41 M

15 M

5 M1 M0.1 MN

um

be

r o

f n

od

es

so

ld (

M)

Primary

Secondary

Industrial and Building

2006 2008 2010 2012

microGen

Energizing the Wireless WorldAlternate Power Sources

Energy Harvesters• Solar or photo-voltaic cells• Thermal generators• Wind and water turbines

– rotational kinetic energy

BOLT™ -recharger uses

• Mechanical vibrational kinetic energy

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“-Recharger Cube”

MEMS fabrication

Low-cost batch wafer microfabrication

Internal micro / nano “diving boards” move due to external vibrational force and generate

electric charge / power

microGen

Energizing the Wireless WorldPrototype progress

• Significantly improved in production yield > 90%

• Increased Voltage & Power; up to 4 Volts and < 5 Watts

• Improved performance 240 ± 5 Hz; bandwidth = +/- 2 Hz

3rd set functional prototypes – September 2009

All packaged die are functional

video

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$121.03

$33.23 $22.81$16.56

$51.80

$1.24$1.71$2.49$3.89$9.08

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

13,500 43,334 279,250 1,787,200 11,438,080

Production volume

Es

t. p

rod

uc

tio

n c

os

t

Power CubePower-chip

MEMS production cost

200 mm diameter wafers

< 10 K > 30 K > 300 K > 1.5 M > 10 M

-Recharger Chip

-Recharger Cube

microGen

Energizing the Wireless WorldCompetition

PMG

Adaptiv- Energy MicroPelt Lumedyne

IMEC

Holst

MicroGen

Systems

Type inductive vibrational

piezo vibrational

thermal inductive vibrational

piezo vibrational

piezo vibrational

Size meso / moderate

MEMS / small

MEMS / small

Price unknown research

licensing

$206 2010

$82 2013

Scale

Stage in market

in market

in

market

in

market

research Alpha –prototype

Difficult to scale-down size and price Price drops w/ size & production volume

$206 2010

meso-scale / large

$600 - $800 each

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Sales / market plan

Market Revenues 2010 2011 2012 2013

Power-Cube price / cost $ 150 / 116 $ 150 / 64 $ 75 / 33 $ 62 / 29

Number units sold 3,375 57,807 372,520 1,345,117

Industrial & Building $ 509 K $ 7971 K $ 33,900 K $ 70,398 K

Civil Infrastructure - $ 500 K $ 2,000 K $ 7,500 K

Military - $ 200 K $ 600 K $ 1,500 K

Asset tracking - - $ 750 K $ 2,000 K

Transportation - - - $ 2,000 K

Board Components (TI/Cymbet) $ 186 K $ 2,312 K $ 11,175 K $ 26,902 K

Revenue $ 695 K $ 11 M $ 39 M $ 110 M

Forecast Revenue by market

• unadjusted business plan values

• shows plan on breaking into different sub-markets

microGen

Energizing the Wireless WorldCurrent Financials

110

22

-0.4

-5.0

15.0

35.0

55.0

75.0

95.0

115.0

135.0

2009 2010 2011 2012 2013

RE

VE

NU

E (

$ M

)

-5.0

15.0

35.0

55.0

75.0

95.0

115.0

135.0

EB

ITD

A (

$ M

)

Financials based upon late 2007 data

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Energizing the Wireless WorldAdjusted Financials

48

10

-0.6

-5.0

5.0

15.0

25.0

35.0

45.0

55.0

2009 2010 2011 2012 2013

RE

VE

NU

E (

$ M

)

-5.0

5.0

15.0

25.0

35.0

45.0

55.0

EB

ITD

A (

$ M

)

Downturn + improving economy- 18 month shift

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Application Frequency Acceleration

Power Cube volume

Generated power

Stored Energy

on TI / Cymbet board

(conversion efficiency)

Min. duty-cycle (TI radio signal transmitted)

Bridges, Asset tracking

intermittent vibration – assume two (2) 2 hr blocks of vibration per day

BOLT(060-140)B – w/ 50 Ahr @ 3.8V Li-R-Battery*

60 to 140 Hz; e.g. Mackinac Bridge vibrates 100-105 Hz w/ auto traffic

100 mg 1.6 cm3 (2 cubes)

58 W 460 mJ stored (55%) Every 3 minutes - 20 radio signals per hour

Small industrial equipment, lighting control, HVAC

** continuous vibration

BOLT120C, BOLT100C

120 Hz (US), 100 Hz (EU)

250 mg 0.8 cm3 72 W 255 mJ in 1 hr (99%) - 68 mJ max on ulttra-cap

Every 20 sec**

< 85 (20 mW*20 msec) signals sent with energy stored on capacitor (50%)

Medium industrial equipment, lighting control, HVAC


BOLT120C, BOLT100C

120 Hz (US), 100 Hz (EU)

500 mg 0.8 cm3 144 W 515 mJ in 1 hr (99%) - 68 mJ max on ulttra-cap

Every 10 sec**


Large industrial equipment, HVAC


BOLT120C, BOLT100C

120 Hz (US), 100 Hz (EU)

1g 0.8 cm3 288 W 1033 mJ in 1 hr (99%) - 68 mJ max on ulttra-cap

Every 5 sec**


Planes, trains and autos

Variable intermittent vibration

BOLT(060-140)B – w/ 50 Ahr @ 3.8V Li-R-battery*

50 to 250 Hz 0.2 to 2g; on average 1g

0.8 cm3 58 to 576 W; on average 1 g

460 mJ (55%) to 7 J (85%) – on average 3.5 J in 4 hrs – max 684 max on 50 Ahr Li-RB (bigger batteries available)

Every 30 sec to nearly continuous with vibration; battery backup on average every 10s

BOLT™ – market assessment

BOLT™ products FIT ALL WSN applications

microGen

Energizing the Wireless WorldAdvisory board

• Skip Ashton, Sr. VP Engineering, Ember Corporation, MA

• Dr. Mark Bocko, CEO, ADVIS; Chair & Professor EECS, U of R, NY

• Jim Cantin, CEO, Leveraging Technology, NY

• Dr. Les Fritzemeier, CEO, Wakonda Technology, MA

• Roger Grace, Roger Grace Associates, FL

• Steve Grady, VP Marketing, Cymbet Corporation, MN

• Jonathon Greene, CEO, Widetronix Semiconductors, NY

• Dave Henderson, CEO, NewScale Technologies. NY

• Peter Tsepellef, CEO, Grape Networks, CA

• Andrew Tucker, VP North American Field Operations, SPP Process

Technology Systems, MA, USA & Wales, UK

• Dr. Junru Wu, Technical Fellow & Professor Physics, MicroGen / UVM.

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MicroGen Systems, LLCUpstate Central New York

Micro-rechargers and Self-powered Batteries

Generations of Power™

BOLT™

Robert Andosca, COO / [email protected]

David Hessler, [email protected]

(607) 237-3001 mainwww.microgensystems.com

Documents

MicroGen Energizing the Wireless World June 10, 2010 1 MicroGen Systems, LLC Cornell Business & Technology Park Powering A Smarter Planet ™ BOLT™ Vibrational