INVESTOR PRESENTATION NOV-2015 - IR WebKitclient.irwebkit.com/assets/uploads/kit/b340e5fc770d5dd... · 2018-06-16 · INVESTOR PRESENTATION NOV-2015 ©2015 QuantumSphere, Inc

INVESTOR PRESENTATION NOV-2015

©2015 QuantumSphere, Inc. (QSI) All Rights Reserved.

OTCQB: QSIM

Kevin MaloneyChairman & CEO

949-378-9851

[email protected]

DISCLAIMER:

This presentation is provided for information purposes only and should not be construed as an offer, and shall not form part of an

offer, or solicitation to buy or sell any securities or derivatives. It should not be considered as an invitation to subscribe for or purchase

any securities in QuantumSphere, Inc. or as an inducement to make an offer or invitation with respect to those securities. No

agreement to subscribe for securities in QuantumSphere, Inc. will be entered into on the basis of this presentation.

To the maximum extent permitted by applicable laws, QuantumSphere and its affiliates make no representation and can give no

assurance, guarantee or warranty, express or implied, as to, and take no responsibility for the authenticity, validity, accuracy, suitability

or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation.

FORWARD LOOKING STATEMENTS:

Any information provided with this presentation related to timing, price, volume, and projected revenue are forward-looking statements

and represent management’s best estimates as to its future performance. As such, these statements are not guarantees of future

performance and are subject to high risks, uncertainties, and assumptions that are difficult to predict. Therefore, our actual results

could differ materially and adversely from those expressed in any verbal or written forward-looking statements as a result of various

factors beyond our control.

PAGE 1Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM

QSI is Transforming the Chemicals Industry

PAGE 2

• QSI products address key chemical production inefficiencies

• Lead chemical: $100B market, critical to global food supply

• $5M investment in QSI tech can generate ~$100M of output

• 100’s of plants globally can benefit from QSI value proposition

• Lead product commercially validated in Q1, 2015

• Joint Development Agreement with industry leader, Casale

• ~$100M annual revenue potential at 60%+ gross margin

• Volume production capacity in place – backed by extensive IP

• QSI is poised for profitable growth, commencing in 2016

QuantumSphere

OTCQB: QSIM

Improving Chemical Production Efficiencies With Advanced Technologies OTCQB: QSIM

15% Energy savings

QSI Technology can Add up to $10 Billion in Annual Revenue to the World’s Most Critical Chemical…

…With a 10% Increasein Production Output.

• ~$100B Global Market; ~200M Tons Annually

• Most Critical Chemical Developed in the 20th Century

~82% of Ammonia Used for Agricultural Fertilizer

Enabled Global Food Supply and Population Boom

• Responsible for:

~50% of All Protein Consumed on the Planet

~2% of Global Carbon Dioxide Emissions

• Consumes:

~5% of World’s Natural Gas

~2% of World’s Energy Supply

• Production:~600 Ammonia Plants in Operation WorldwideHighly Inefficient Production Process

QSI Technology Can Significantly Increase Chemical Plant Revenue & Profits

PAGE 4

Focus on Ammonia for Global Food Supply


“Turbo-Charging” Ammonia Production

PAGE 5

Standard ammonia catalyst coated with

high surface area FeNIX technology

FeNIX nano catalyst accelerator

loaded into existing ammonia

converter


FeNIX can improve ammonia plant efficiency

10-15% (5% considered significant);

commercially validated in Q1-2015.

FeNIX™High Performance

Catalyst Accelerator

High Surface Area = Increased Efficiency = Greater Profits

Partnership Executed with Industry Leader

PAGE 6

• Executed Joint Development

Agreement in May 2015

• Global leader in ammonia

production technologies

• Casale technology utilized in

~40% of global ammonia &

methanol production

• QSI is exclusive provider of

nano catalysts to Casale


Casale converter technology critical

to global ammonia production Hundreds of ammonia plants worldwide can

benefit from increased production efficiency

Casale is Driving QSI Commercialization

PAGE 7

• Conservative industry: multi-year/multi-step process

• Multiple forces are driving the need for higher production efficiencies

• QSI commercialization process now in final stages, led by Casale

Initial Commercialization in a Casale Reactor – (Q1-2016)

External Lab Validation – Europe (In Progress)

Commercial Plant Validation – China (2015)

Completed Manufacturing Facility – QSI (2014)

External Lab Validation – China (2014)

Internal Lab Validation – QSI (2009 – 2013)


PAGE 8

$100M Annual Revenue Opportunity

How do we get there?• Casale refurbishes 10-15 plants/year

(~40% of ammonia production volume)

• $5M-$10M average per plant to QSI

•Recurring revenue model

Up to $100M Annual

Revenue PotentialExpected Direct Revenue Access

Through Industry-Leading Partner, Casale,

Upon Initial Commercialization


PAGE 9

2 Key Channels for Market Penetration


1) Converter Technology;

Essential to efficient

ammonia production

2) Catalyst Technology;

Facilitates the ammonia

chemical reaction

2 technologies required for ammonia production

2 ways for QSI to penetrate the market

Multiple channels provide additional market access, less risk

QSI FeNIX catalyst accelerator technology offers a significant

competitive advantage to leading technology & catalyst providers

PAGE 10

FeNIX Nano Catalyst

Accelerator Technology

Leading Ammonia

Technology Providers

Leading Ammonia

Catalyst Providers

Dominant Commercial

Ammonia Producers

QSI in the Value Chain

Casale

JDA


No QSI sales force required – able to leverage existing partner networks

QSI Offers a Compelling Value Proposition

PAGE 11

100’s of ammonia plants globally could benefit from QSI technology

• Demonstrated 10-15% Increase in Catalyst Activity

2015 commercial plant validation; 5% considered significant

• Strong ROI & IRR for Ammonia Producers

~2 year payback; typical catalyst life >10 years

• Two Ways Ammonia Plant Operators Win

(based on production increase, energy savings, and size of plant)


Every

$1MInvestment

in FeNIX

Up to

~$20MIn Production

Revenue

1. Production Increase

Every

$1MInvestment

in FeNIX

Up to

~$4MIn EnergySavings

2. Energy Savings

Delivering Shareholder Value

QSI Profit Economics

• Gross Margins: 60%+

QSI Production Capacity

• Current Manufacturing Facility:

Ability to Service 2–3 Typical, Mid-Sized Plants per Year

$10-20M in Annual Revenue Potential* *Dependent on production increase vs. energy savings and size of plant

• Economically Scalable Manufacturing Facility:

~$10M CapEx Investment Can Deliver

up to $100M in Annual Revenue to QSI


Patented High-Volume Production

PAGE 13

Economically Scalable | Highly Automated | Extensive IP

Inputs Vaporize Passivate Package

STEP

1STEP

2STEP

3STEP

4


QSI Core Manufacturing Process

Covered by U.S. Patent No: 7,282,167

Increased Surface Area → Increased Profits


Existing Commercial

Iron (Fe) Catalysts

FeNIX™ Applied as Coating to

Commercial Iron (Fe) Catalysts

High Surface Area FeNIX™ Iron

(Fe) Nano Catalyst Accelerator

• Backed by 9 issued patents

and 3 pending applications

• 12 years of “know-how” & IP

• 12kg drum of FeNIX will coat

800kgs of existing catalysts

Large Pipeline of Chemical Opportunities

PAGE 15

QSI may ultimately improve many chemical processes

Olefins

Methanol

Ammonia FilterMethanol

Olefins

Ammonia

Ethylene Oxide

Fluid Cat Cracking

Hydro-processing

Bio-RenewablesPoly-olefins

Fischer-Tropsch

Hydrogen

Polyurethanes Syngas

Sulfur Recovery

Methanation

More… Parafins

~$1.5 Trillion USD in Basic Chemicals Produced Annually

Up to 90% of all Industrial Processes Utilize Catalysts

---------------------------

Account for

Nearly 1/3 of

Basic

Chemicals

Produced;

~$450B USD

--------------------------


~$2B Total Available Market

PAGE 16

Total Market: ~$100B ~$300B ~$50B

Total Available

Market (TAM):~$250M ~$1.5B ~$250M

QSI Addressable

Market*:~$100M ~$300M+ ~$50M+

End Products: Agricultural Fertilizer Polymers, Plastics Paint, Adhesives, Fuels

Product Status:Initial

Commercialization

Lab Validations

in Progress

Lab Validations

Pending

C2-C4NH3CH4O

Ammonia MethanolOlefins


*QSI Addressable Market is based on a blend of increased production and

energy savings in plants directly accessible through Casale partnership.

d

Target Objectives and Next Steps

PAGE 17

QuantumSphere

OTCQB: QSIM

OPERATIONAL

• Execute commercial agreements with

additional industry-leading partners

• Complete follow-on commercial reactor

validation utilizing Casale technology

• Secure purchase orders via existing Casale

channels for FeNIX ammonia catalyst sales

• Further validate follow-on nano catalyst

accelerator products for Methanol and Olefins

• Continue to expand production capabilities to

meet demand and protect IP


Public Company Background

PAGE 18

• Founded in 2002 as an R&D company

Focused on industrial chemicals sector

• Became publicly traded in 2014; QSIM

• ~$32M in equity financing secured to date

~$7M in cash from board and management

• Recent Stock Price: $2.00

• Market Cap: ~$45.02M

• ~22.5M shares outstanding

~5.4M in public float

• Raising capital for NASDAQ uplisting

QuantumSphere

OTCQB: QSIM


Experienced Management Team

PAGE 19

Substantial business and technical qualifications to execute QSI strategy

~$7M in capital invested by Management, Board, and Advisors

Kevin Maloney, MBACo-Founder &

Chief Executive Officer

• 21 years of experience in sales, marketing, and finance

• Formerly at PIMCO and First American Corporation

• Experienced entrepreneur with previous start-up experience

Gregory Hrncir, Esq.Chief Strategy Officer &

General Counsel

• 22 years of experience in corporate, securities, M&A and technology start-ups

Steve Gillings, MBAChief Financial Officer

• 30 years of accounting experience at multiple public companies

Matthew Griffith, MBAVice President, Operations

• 10 years of experience in commercialization and development of advanced materials and

clean energy systems

Vito Canuso, Esq.Vice President,

Intellectual Property

• 20 years of IP litigation/portfolio experience with top IP law firm Knobbe, Martens, Olson, and

Bear LLC

• Held senior position at Medtronics


Seasoned Board of Directors

PAGE 20

Marc Goroff, Ph.D. • Chief Technology Officer and co-founder, Quorum Technologies.

• Serial hardware and software technology entrepreneur

• Earned Ph.D. in Theoretical Physics from Caltech at age 23

Steven Myers

Governance and

Nominating Committee Chair

• Chairman of Dolphin Capital Holdings, Inc., a private equity investment company

• Chairman of Governance & Nominating Committee of Neostem, Inc., a biosciences company

• Former Founder & CEO of SMA, an aerospace & defense mgmt consulting services business

Jeff Palmer, MBA

Strategic Planning &

Operations Committee Chair

• Founder & CEO of Rimports, $150M+ manufacturer of consumer products in major retailers

• Finalist in the Utah regional competition for 2012 Ernst & Young Entrepreneur of the Year

• Former Far East Area Director for ICON Health & Fitness in Hong Kong, fluent in Mandarin

and Cantonese

Francis Poli, Esq.

Lead Director and

Compensation Committee Chair

• General Counsel and Executive Vice President, Cohen and Steers, Inc. (NYSE: CNS)

• Former Chief Legal Officer and Compliance Committee Chair with PIMCO and Allianz

• Former JP Morgan counsel

Robert Venable, MBA/CFA

Audit Committee Chair

• Managing Director and Chief Financial Officer, SW Asset Management, LLC.

• Former Chief Investment Officer at First American Corp, Capital Mgmt Division (NYSE: FAF)

• Vice President in Charge of Global Asset Allocation at PIMCO


Notable Technology Advisory Board

PAGE 21

Jared Cohen • Director of Google Ideas

• Co-Author with Google’s Chairman, Eric Schmidt; The New Digital Age – Reshaping the Future of

People, Nations, and Business

• Named one of the 100 Most Influential People in the World by Time Magazine – May 2013

• Stanford / Oxford / Rhodes Scholar

Bill Collins • Managing Director of Global Resource Management Consultancy (GRMC)

• Key executive at International Rectifier, ramping the company from $60M to over $700M in Revs

• Frequent industry panelist and guest lecturer at CalTech, USC and LARTA

• Past President, Tech Coast Angels, Los Angeles

Jon Faiz Kayyem, Ph.D. • Member, Caltech Board of Trustees

• Founder, CMS (Acquired by Motorola)

• Chief Technology Officer, GenMark (NASDAQ: GMRK)

Prof. George Olah, Ph.D.Nobel Prize Winner

• Nobel Laureate (Chemistry, 1994) for research involving the generation and reactivity of

carbocations via superacids

• Priestley Medal (American Chemical Society)

• Distinguished Professor of Chemistry and Chemical Engineering and Materials Science

• Director of the Loker Hydrocarbon Research Institute

• Dr. Olah served on the QSI Board of Advisors from Dec. 2005 through his retirement in Dec. 2014


Transforming the Chemicals Industry

PAGE 22

• QSI technology increases chemical production efficiency

• Compelling value prop for 100’s of chemical plants globally

• Lead chemical: Ammonia, commercially validated

• Executed partnership agreement with industry leader, Casale

• QSI R&D complete – commercialization in final stages

• Volume production capacity in place – backed by extensive IP

• ~$100M/year ammonia revenue potential (60%+ GP Margin)

• QSI is poised for profitable growth, commencing in 2016

QuantumSphere

OTCQB: QSIM


Contact Information

Kevin Maloney, MBA Gregory Hrncir, Esq.Chairman & CEO General Counsel & CSO

949-378-9851 818-400-5930

[email protected] [email protected]

PAGE 23

Contact Info:QSI-Nano Catalyst Production Facility; ~4 Metric Tons per Year Capacity


mailto:[email protected]

mailto:[email protected]

Documents

INVESTOR PRESENTATION NOV-2015 - IR WebKitclient.irwebkit.com/assets/uploads/kit/b340e5fc770d5dd... · 2018-06-16 · INVESTOR PRESENTATION NOV-2015 ©2015 QuantumSphere, Inc