JET PRINT

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JET PRINT
Spin-Off Company based on the printable
electronics patent from OSU researcher Dr. Chang

• April 25, 2007

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• (3M) (JetPrint)
  (Viracon)
• Buy custom plastic substrate ? Process ? Sell
  transparent solar film

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Overview

• Team
• Problem
• Current Technology
• Competition
• Jet Print Advantage
• Payback
• Market
• Strategic Phases
• Financial Projections

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Team

• Inventors
• Chih-hung Chang, Associate Professor of Chemical
  Engineering at Oregon State University
• OSU Students
• Evan Sekulic, Construction Engineering Management
  
• Tim Louden, Electrical and Computer Engineering
• Nate Edwards, ECE and Entrepreneurship
• Adam Ivey, Business Administration
• Mentors
• Todd Miller, OSU, ONAMI
• Chris Oriakhi, PhD Chemistry (1996) from OSU, MBA
  Technology Management Innovation (2004) from
  MIT Currently working at HP

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Problem

• Current Energy
• Mostly non-renewable
• Rising Costs
• Environmental Issues
• Renewable Energy
• More Expensive
• Current Photovoltaics
• Mainly Rooftop Applications
• Large panels needed to produce enough power

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Current Technology

• Wafer Based
• Specifications
• Mostly high purity silicon
• 10-20 efficiency
• 4.80 /W retail
• Drawbacks
• limited supply of silicon
• Higher efficiency is not space efficient
• Not flexible or transparent

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Current Technology

• Thin Film
• Specifications
• Many compositions
• Most do not use Silicon
• 13-30 efficiency
• 3.00 /Watt
• Drawbacks
• Potentially hazardous materials
• Manufacturing difficulty
• NOT TRANSPARENT

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Competition

• Evergreen Solar
• Wafer Based PV
• Subject to Si price fluctuations
• NanoSolar
• Thin Film PV
• Roll to roll printing
• HelioVolt
• Thin Film PV
• Miasolé
• Thin Film PV

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JetPrint Advantage

• Roll to roll printing
• Non-silicon process
• Lower Cost per Watt
• TRANSPARENT
• They may compete on the rooftops, but we will
  control the windows!

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Example Building

• Window Area (200X100X2sides) 40,000 sqft
• Incremental costs 384,000
• Payback lt10 YRS
• Cal energy price (0.12/kWh)?
• Cal solar radiation (medium)?
• Cal tax incentives (average)?

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Market

• World Solar Energy 7B Industry
• 1.7B for thin film organic for 2006
• World Solar Cell Production reached 2,204 MW in
  2006

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Annual Photovoltaic Domestic Shipments, 1996-2005
-www.eia.doe.gov
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Market

• Thin Film and Organic Market to reach 2.3B by
  2011
• Integrated building and construction products
  such as PV enabled roofing and window materials
  are projected to be the largest market
  opportunity measuring 800 million (US) in 2011
• Nanomarket.net

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Market Share of Crystalline Silicon Shipments,
1996-2005
www.eia.doe.gov
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Market Share of Thin-Film Shipments, 1996-2005
www.eia.doe.gov
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Photovoltaic Cell and Module Shipments by Type,
2003-2005
  Shipments (Peak kilowatts) Shipments (Peak kilowatts) Shipments (Peak kilowatts) Percent of Total Percent of Total Percent of Total
Type 2003 2004 2005p 2003 2004 2005p
Crystalline Silicon            
Single-Crystal 59,379 94,899 71,901 54 52 32
Cast and Ribbon 38,561 64,239 101,065 35 35 45
Subtotal 97,940 159,138 172,965 90 88 76
Thin-Film 10,966 21,978 53,826 10 12 24
Concentrator 452 0 125 0
Othera 0 0 0 0 0 0
             
Total 109,357 181,116 226,916 100 100 100

• a Includes categories not identified by reporting
  companies.
• Less than 0.5 percent.
• P Preliminary.

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Strategic Business Phases

• Phase A Develop Prototype
• Phase B Testing and Showcase
• Phase C Full scale application
• Phase D Self Manufacturing Expansion
• Phase E Industry Leader

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A) Develop Prototype

• develop transparent solar cell prototype on
  flexible substrate with acceptable power
  generation
• Duration 12 Months with two research assistants
• Cost 100,000
• Funding Source ONAMI
• Printing done in current OSU Lab
• NO office space

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B) Testing and Showcase

• High tech building integration will provide data
  and a showcase for the technology
• Duration 6 Months
• Cost 150,000
• Funding Source SB research grants and Angel
  investments
• Printing done by PicoJET
• Applied to exterior of skylight glass
• Small temporary office space

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Analyze Licensing Potential
Build Business Capitol investment in
printer Lease office and manufacturing site
Licensing IP Identify potential
companies Leverage IP with successful tests
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C) Full Scale Application

• Find interested owner for 1 full scale commercial
  building
• Duration 6 Months
• Funding Cost 200,000
• Funding Sources private investment and VC
• Printing done by PicoJET
• Integrated into commercial windows
• Small temporary office space

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D) Self Manufacturing Expansion

• Expand facilities and equipment capabilities so
  that product can be manufactured in-house
• Duration 6 Months
• Funding Cost 500,000
• Funding Sources VC
• Move to larger Office and Manufacturing Site
• Buy Printer and Post Processing Equipment

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E) Industry Leader

• Increase production and business infrastructure
• Funding Source Self Funded
• Multiple Printers Post Processors
• Large office and manufacturing facility
• Explore other product opportunities

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Business Basics

• Buy custom plastic substrate ? Process ? Sell
  transparent solar film (3M)
  (JetPrint) (Viracon)
• SF materials cost 0.50 /SF
• SF selling price to window manufacturers 4.00
  /SF
• Printer and post processor cost 300,000
• Increase team size and equipment as production
  expands

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Financial Summary

• Square FT Buildings EBT
• YR 0) 0 0 (10,000)
• YR 1) 40,000 1 (164,600)
• YR 2) 480,000 12 687,400
• YR 3) 480,000 12 795,900
• YR 4) 960,000 24 1,668,500
• YR 5) 2,880,000 72 8,542,650

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Management Team

• CEO
• Local expert
• Previous start up experience
• Part time consultant
• Student Team
• Currently 4 students
• Technology and Business Backgrounds
• Add 2 graduate research assistants
• Head Researcher
• Dr. Chang

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Questions?
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• Energy And Atmosphere on-site renewable energy 3
  points
• Environmental Quality daylight and views 2
  points

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Technical Details

• Wafer-based PV
• c-Si and mc-Si
• Si with dopant from Group III (B) and Group V (P)
• mc-Si
• High efficiency due to purity
• Circular cell results in wasted space in square
  panels
• Thin Film PV
• CdTe, CuInGaSe (CIGS), GaAs, CuInSe (CIS)

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Technical Details

• Printable PV
• Groups II-VI and Groups I-III-VI are being
  investigated
• Inorganic materials are printed using ink jet
  technology with solvent based 'inks'
• This allows semi-transparent printing be varying
  the density
• Efficiency is inversely proportional to
  transparency

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Technical Details

• Customer Payback
• Solar radiation varies from 4 to 10 kWh/m2/day
  in the US
• Europe is similar
• Developing countries have higher levels of
  radiation
• Grid electricity in the US averages 0.08/kWh
• State prices exceeding 0.11/kWh are not uncommon

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    (Phase A)   (Phase BC)   (Phase DE)   (Phase E)        
    Year 0   Year 1   Year 2   Year 3   Year 4 Year 5
Beginning Cash Balance Beginning Cash Balance 0 (10,000) (164,600) 687,400 795,900 1,668,650
Cash Inflows (Income) Cash Inflows (Income)
Grants 100,000 150,000
VC investment 200,000 500,000
Sales Receipts 40,000 1,920,000 1,920,000 3,840,000 11,520,000

Total Cash Inflows 100,000 390,000 2,420,000 1,920,000 3,840,000 11,520,000
Available Cash Balance Available Cash Balance 100,000 380,000 2,255,400 2,607,400 4,635,900 13,188,650
Cash Outflows (Expenses) Cash Outflows (Expenses)
Advertising 0 40,000 192,000 192,000 384,000 1,152,000
shipping 0 1,500 12,000 12,000 24,000 72,000
Insurance 0 5,000 10,000 15,000 30,000 60,000
Materials 10,000 10,100 240,000 240,000 480,000 1,440,000
R D 100,000 70,000 140,000 210,000 210,000 210,000
Payroll 0 0 100,000 150,000 200,000 250,000
management salary 0 310,000 390,000 570,000 790,000 1,010,000
Professional Consulting 0 40,000 40,000 60,000 80,000 100,000
Rent or Lease 0 60,000 120,000 120,000 120,000 120,000
office Supplies 0 3,000 6,000 8,000 8,000 10,000
Utilities Telephone 0 5,000 8,000 10,000 10,000 12,000
Loan Repay 264,500 661,250 0

Subtotal 110,000 544,600 1,258,000 1,851,500 2,997,250 4,436,000
Other Cash Out Flows Other Cash Out Flows
Capital Purchases 300,000 250,000
depreciation 50,000 50,000 100,000
equipment parts maintenance equipment parts maintenance 10,000 10,000 20,000 60,000
           
Total Cash Outflows 110,000 544,600 1,568,000 1,811,500 2,967,250 4,646,000

Ending Cash Balance Ending Cash Balance (10,000) (164,600) 687,400 795,900 1,668,650 8,542,650
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BREAK EVEN ANALYSIS BREAK EVEN ANALYSIS material cost of .5/SF material cost of .5/SF
Year 2 selling price of 4/SF selling price of 4/SF

Buildings/Year SF product Gross Revenue Variable Cost Fixed OH Capital Exp Profit
0 0 0 0 1,550,000 -1,550,000
1 40000 160,000 20,000 1,550,000 -1,410,000
2 80000 320,000 40,000 1,550,000 -1,270,000
3 120000 480,000 60,000 1,550,000 -1,130,000
4 160000 640,000 80,000 1,550,000 -990,000
5 200000 800,000 100,000 1,550,000 -850,000
6 240000 960,000 120,000 1,550,000 -710,000
7 280000 1,120,000 140,000 1,550,000 -570,000
8 320000 1,280,000 160,000 1,550,000 -430,000
9 360000 1,440,000 180,000 1,550,000 -290,000
10 400000 1,600,000 200,000 1,550,000 -150,000
11 440000 1,760,000 220,000 1,550,000 -10,000
12 480000 1,920,000 240,000 1,550,000 130,000
13 520000 2,080,000 260,000 1,550,000 270,000
14 560000 2,240,000 280,000 1,550,000 410,000
15 600000 2,400,000 300,000 1,550,000 550,000
16 640000 2,560,000 320,000 1,550,000 690,000
17 680000 2,720,000 340,000 1,550,000 830,000
18 720000 2,880,000 360,000 1,550,000 970,000
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Preliminary Staffing Plan
0 1 1 2 3 4 5
A B C D E E E

2 research assistant
1 head researcher 1 head researcher 3 head researcher 3 head researcher 3 head researcher 3 head researcher
2 skilled workers 2 skilled workers 3 skilled workers 4 skilled workers 5 skilled workers
3 team members 3 team members 3 team members 3 team members 3 team members 3 team members
2 consultants 2 consultants 2 consultants 3 consultants 4 consultants 5 consultants
5 board of directors 5 board of directors 5 board of directors 5 board of directors
1 Executive Manager 1 Executive Manager 1 Executive Manager
4 business staff 6 business staff 8 business staff
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