Presented by: Keith R. Johnson

2

SBIR Workshop Agenda

Company Introduction

SBIR Success StoryPhase III ActivitiesSBIR ChallengesSummary and Discussion

3Commercial Thermal Analysis Military Signature Analysis

Providing State-of-the-Art Software Products for:

MISSION

4

1996 ThermoAnalytics Incorporates (spin-off from MTU)

1997 Win 1st Army Phase II SBIR1998 1st Commercial RadTherm

release (through Ford/TACOM CRADA) 2nd Army Phase II SBIR

1999 1st Dual-Use RadTherm / MuSES release (via SBIR)

2000 TAI receives Tibbetts Award and Army SBIR Quality Award Marines Phase II SBIR

2001 TAI awarded Army Prime Contractor of the Year and MI Commercial Success Award

2002 Commercial Software Sales from SBIR/CRADA Product more than Double 3rd Army Phase II SBIR plus Navy Phase II SBIR

2003 4th Army Phase II SBIR plus 2 Phase I’s

HISTORY

5

STAFF

5 Offices in USA26 Employees

12 Hold Advanced Degrees4 Hold PhD’s

Sales Representatives:GermanyUnited KingdomJapanKorea

6

Radiation Physics

Computational Fluid Dynamics

Thermal System Modeling

Cross-Platform SoftwareDevelopment

Code Optimization

Graphical User Interface Design

CORE COMPETENCIES

7

Thermal /IR Signature Modeling

Systems/Component Level Thermal Modeling

drivetrain cooling inletdrivetrain exhaust

NBC inlet

crew compartment temperature control by:

• heat addition • cooling

compartment exhaust

PRODUCTS

8

• DaimlerChrysler• EDS• Ford• General Motors• Jaguar• Land Rover• Mazda• MSX International• Opel• Reiter • Van-Rob Stamping• Volvo• Others

• Boeing

• Flight Safety International

• General Dynamics

• Lockheed

• Los Alamos National Lab

• Northrop Grumman

• Sikorsky

• SAIC

• Teledyne Brown

• Textron

• United Defense

• Army, Navy, Air Force, Marines, Coast Guard, NGIC, NAIC

• Others

CUSTOMERS

9

CURRENT PROGRAMS - 1

The FCS Program at TACOM requires concept analysis using tools developed specifically for the various new treatments and systems being considered for the design. TAI is providing modeling support of the new propulsion system and surface treatments by integrating Pro-Engineer (a parametric CAD tool) and Fluent (a Full Navier Stokes CFD tool) with MuSES. Both geometric design and propulsion system tradeoffs can now be readily assessed with MuSES.

Future CombatSystems

Procuring Agency:US Army TACOM

To support the AAAV Vulnerability Analysis, ThermoAnalytics is developing a ray-tracing tool optimized for Pro/E geometry. This tool will eliminate the difficult translation of target geometry between commercial CAD systems and BRL-CAD. The current MUVES vulnerability code functions only with BRL-CAD geometry. The multi-platform program will be capable of ray-tracing surface and solid geometry from a variety of commercial CAD systems.

AAAVRay TracingTool

Procuring Agency:US Marine Corps

We are supporting the UGCV design team with detailed analysis of the entire vehicle airflow and thermal management systems. We are modeling the hybrid electric vehicle (HEV) propulsion system and modeling vehicle internal and external geometry with MuSES. This mobility module will be a key design tool for improving the system’s level performance.

Unmanned Ground Combat Vehicle

Procuring Agency:DARPA

10

A program with Montana State University and the Montana Department of Transportation uses ThermoAnalytics’ thermal program to predict highway temperatures in order to monitor freezing/thawing conditions. The goal of the Safe Passage Program is the development and demonstration of a rural weather prediction model and motorist communication system for safe and efficient traffic management / infrastructure maintenance.

Safe PassageProgram

In support of the Tri-services WIDA Program, ThermoAnalytics is producing the core integrated thermal solver and guiding the construction of the target models for these tactical prediction tools. We are developing the concept of a fielded version of MuSES in which mission planners, Intel, or pilots can quickly modify or build the target that they expect engagement – just prior to their mission.

WeatherImpactDecision Aids

Procuring Agency:Montana DOT

In support of the Naval Health Research Center, we are developing a bio-heat transfer code that incorporates: 1) physiological heat sources and thermoregulatory mechanisms;2) passive and active clothing models; 3) environmental loads and human comfort model. This will enable high-resolution determinations of thermal effects of exposure to electromagnetic (RF) fields for humans and animals.

ThermoRegulationEffects of RF Sources

Procuring Agency:Office of Naval Research

Procuring Agency:Air Force Research Lab

CURRENT PROGRAMS - 2

11

FUNDS FROM DIFFERENT AGENCIESTAI Funding Participation Level

(1996-2003: $10M Total Contracts)

Army55%

Navy14%

Air Force4%

Marines8%

DARPA5%

Aerospace2%

Automotive10%

DOT2%

12

Yearly Growth Comparisons/Projections

0

5

10

15

20

25

30

35

40

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

Mil

lio

ns

Full Time Equivalents (FTE) Total Revenues

PROJECTED GROWTH

13

SBIR Workshop Agenda

Company IntroductionSBIR Success StoryPhase III ActivitiesSBIR ChallengesSummary and Discussion

14

Phase III SBIR Commercialization :Software Product Sales to date

Industry: $1M Over 125 Licenses sold plus 250

Licenses in use at Ford Government: $200K Export: $200K

Additional InvestmentDOD: $1.9MDOT: $175K Industry: $668KTAI IR&D: $150K

COMMERCIALIZATION SUCCESS STORY Success with Phase II SBIR’s:

TACOM / NAC MuSES -1997TACOM / NAC HEV -1998Marines Vulnerability Ray-Tracer -

2000TACOM / NAC Vehicle - 2002Naval Health Research Center - 2002TACOM / NAC Exhaust - 2003 2 New Phase I SBIR’s - 2003

Used in DoD Fielded System: TAWS

Current Use in Design of Army FCS, Marines AAAV, & Navy DD(X)

15

First Phase III Project Resulted in Five Awards

1. 2000 Phase II Army Quality Award.2. 5th Annual Tibbetts Award from SBA.3. 2001 Regional Prime Contractor of the Year for Region V.4. 1st Place - Manufacturing & Materials (Thermal

Management Tool) from FLC-Midwest Region Annual Meeting Sep 2001.

5. Michigan Investment and Commercialization Success Award Nov 2001.

16

TAI Revenue: $3MPayroll: $1.5M

Impact on Michigan Tech$1M of subcontracts to MTU and KRC to date$75K software royalties paid out to dateHired 9 MTU gradsHire 3-4 part time students per yearTAI Spin-off from MTU resulted in 2001 Michigan

Commercialization Success Award SBIR Program with Escanaba’s EMP Promoter of Keweenaw Industrial Council and

Michigan Tech Smart Park Employee Ownership through ESOP

Economic Impact to UP

17

SBIR Workshop Agenda

Company IntroductionSBIR Success StoryPhase III ActivitiesSBIR ChallengesSummary and Discussion

18

Army MuSES: FCS HEV ARC Mobility

AFRL WIDA Program: TAWS

Marines Raytracer for AAAV Vulnerability

Navy DD(X) Thermoregulation

DARPA - UGCV Montana DOT

Road Condition Forecaster Big 3 – Dual Use

PRIUS HEV Thermal Model

PHASE III & LEVERAGED ACTIVITIES

19

PHASE III Army SBIR Activities

TACOM has provided significant additional Phase III (topic A96-105) seed money to Provide new capabilities for MuSES to support the Future Combat

Systems (FCS). We have completed our 2nd Phase II project (A97-080) in which

a new design tool for Hybrid Electric Vehicles was produced and is called HEVsim. Attracted interest from the automobile companies and are planning a

CRADA between one of the Big 3 and the National Automotive Center (NAC) at TACOM.

DARPA's Unmanned Ground Combat Vehicle primed by CMU is using our services and this software for its design.

20

PHASE II Plus Army SBIR

We have been awarded a $250K Phase II Plus after Attracting Matching Funds from the Navy DD(X) Program The DD(X) Prime Contractor is having us develop a

Navy MuSES Code for help with Ship Signature and Thermal Design.

21

NAVY: Structured Sea Surface Model From Army Phase II Plus

22

Automotive Research Center (ARC) Industry Quad Members: TACOM, Clemson, TAI

Thermal Management: Engine Cooling Electronic Cooling

Advanced Component Design: Phase Change Materials HEV Components Heat Pipes, etc.

Signature Management Exhaust Cooling Skin Cooling

These Features are By-Products of the ARC/SBIR Programs

Leveraged with Army Phase I SBIR

23

Army SBIR: Mobility & Vehicle Design Simulation Demo

24

SIMULATION: SANDY LOAM - BUMPS

Fielded System: Target Acquisition Weather Software (TAWS)

Winter's cold may help military track Taliban

11/04/2001 - Updated 08:45 PM ET

By Dave Moniz, USA TODAY

…..

Two years ago, the Air Force began employing a sophisticated computer program known as Target Acquisition Weather Software, which uses climate models and other variables to track differences in heat. One Air Force general says the software can be used effectively in cold weather because of the contrast between heat-emitting objects and the air around them.

…..

26

MARINES SBIR COMMERCIALIZATION

Commercial Application: Modeling Solar Loading through GlassAwarded Commercial Contract

($30K - 2000) by Ford Motor Company as a Result of this SBIR ($135K Follow-on 2001)

Pro/E Toolkit Expertise Gained From this Program Made Pro/E to RadTherm Plug-in PossibleRadTherm: Commercial Thermal

Modeling Tool Nov 2002 Software Release with

RadTherm v7

Vulnerability Tool Raytracer

27

BIG 3 RELATED COMMERCIAL PROGRAMS

Ford2 CRADA’s with TARDEC for RadTherm~$1M funding from 1994-2001, now free licensing agreement

GMPurchased several RadTherm seats since product was commercialized

DaimlerChrysler Previously funded us for CTD, now licensing RadTherm

Related Domestic and Foreign Sales

28

Funded by Current Phase II SBIR’s:TACOM / NAC Vehicle SBIR Phase IITACOM / NAC Exhaust SBIR Phase IIMarines Vulnerability Ray-Tracer Phase IINaval Health Research Center Phase II

Funded by Tri-Services CommunityArmy:FCS (TACOM), ARLNavy: DD(X), SPAWAR, NRLAir Force Research Lab

Other Automotive BIG 3Product Commercialization Sales

SOFTWARE DEVELOPMENT PLAN

29

SBIR Workshop Agenda

Company IntroductionSBIR Success StoryPhase III ActivitiesSBIR Challenges Summary and Discussion

30

SBIR CHALLENGE #1Army SBIR Program Phase I Schedule: Phase I topics are announced in May and Proposals due in August with

winners announced in the Fall. Past years because of Gov Funding, contracts are not awarded until

following Feb. By May, a Phase II proposal is due which means only 3-4 months of the 6

month program have gone into the study and the proposal. This means you really have to hit the ground running once the Phase I has been

awarded. Two Solutions:

Work at risk once you have been informed your Phase I has been selected – NOT RECOMMENDED

Since Phase I Base awards are up to 70K (50K saved for Option), try to perform most work in first 3-4 months by staffing with 2 researchers - RECOMMENDED

31

SBIR CHALLENGE #2Army SBIR Program Phase II Schedule: Around July, selections for Phase II awards are announced with winners

eligible to begin work on their Phase I Option Task (~50K). Contracts possibly awarded by Nov. This schedule produces a nice transition and minimal interruption between Phase I

and II. Again because of Gov funding, a Nov contract award has been unusual these past

few years. The Phase II lasts for 24 months at a total funding level of $730K. The Army (and other agencies) have introduced a Phase II Plus which

provides matching funds of $250K and an additional 6 months period of performance. Must attract non-SBIR matching funds Must submit proposal before end of Phase II period

32

SBIR CHALLENGE #3SBIR Program Phase III: This is by far the most challenging since no additional SBIR

funds are provided by Phase III. What you do get is essentially a sole source contract vehicle

to extend your work and product as long as you can identify non-SBIR funds.

Challenging to truly achieve full commercialization of any product with only Phase I and Phase II funds.Marketing costs are very high for introducing a new product to marketPhase II and III successes are necessary to produce a good company

commercialization record for future SBIR awardsPhase II Plus is an excellent program to help achieve commercialization

33

SBIR Workshop Agenda

Company IntroductionSBIR Success StoryPhase III ActivitiesSBIR ChallengesSummary and

Discussion

34

SUMMARYCommercialization well underway

Tri-service contracts, CRADA’s, commercial software licensing, and Phase II/III SBIR’s

First fielded product in AF pilots hands in 2000Also supporting FCS, DD(X), AAAV and previously

Crusader, Future Scout

Seeking Congressional Plus Up for Phase III

35

QUESTIONS?