01 Message from the CEO

02 Our Promise

04 Board messages

06 Our clients’ journey with TEC

08 Client economic outcomes summary

10 Client stories

12 Licensing stories

14 Innovation Awards

16 TEC Edmonton events

18 TEC Centre Labs: Merck Invention Accelerator & UAlberta Health Accelerator

19 DynaLIFE Accelerator

20 TELUS T-Squared Accelerator

22 TEC Health Accelerator

24 TEC Launch Program at TEC Innovation District

25 Financial summary

26 Leadership team

28 Our Partners

Index

Message from the CEO When I think about the successes of TEC Edmonton over the last fiscal year, one word comes to mind–partnerships. That’s because our success is not ours alone—we share each and every accomplishment with our clients, our people, our innovation service partners and our funders. This last year truly demonstrated the importance of how these partnerships are necessary for innovation culture to thrive and companies to succeed.

Our joint venture partnership with Edmonton Economic Development Corporation (EEDC) and the University of Alberta (UAlberta) continues to cement our connections with industry and academia, respectively. Over the last year, EEDC created Innovate Edmonton. This entity demonstrates an increased commitment to the region’s economic growth and we’re pleased to be a part of this innovative community.

As our relationship with EEDC continues to strengthen, so does our partnership with UAlberta. With a record 11 spin-off companies created with UAlberta over the past year, the creation of the University of Alberta Health Accelerator operating from TEC Centre Labs, and the partnership with TELUS on the T-Squared Accelerator, the bar is set higher than ever.

As the region’s innovation ecosystem continues to grow, our relationship with Alberta Innovates and the Edmonton Regional Innovation Network (ERIN) becomes increasingly more important. With a focus on creating a seamless process for entrepreneurs to easily access service providers, we continue to work with Northern Alberta Business Incubator (NABI), Northern Alberta Institute of Technology (NAIT) and Startup Edmonton to create a system that generates more local success stories. We also know that access to funding and financing is instrumental in the development of entrepreneurs, that’s why our partnership with TEC Valhalla Angels provides support and education to help companies get investment-ready.

Recognizing that partnerships often go beyond our back yard, we’ve made significant strides in developing programs with both local and international companies that share our vision to create better client outcomes. With the ongoing support of partners such as Western Economic Diversification and the University Hospital Foundation, we launched the Merck Invention Accelerator. We also started company recruitment for the DynaLIFE Accelerator and the TEC Edmonton – TusStar Accelerator Exchange. These programs not only extend the services we provide but they make our clients global players.

As we look forward, we will continue to make decisions in line with Our Promise, we remain committed to creating better client outcomes and we will foster our relationship with UAlberta to support the commercialization of research coming out of the university.

Chris Lumb1

Together with you, we deliver the best outcomes for the best value.

We use your strengths to create better client outcomes.

We provide diverse experience and you will make a difference to innovators.

Our extensive expertise and network will help you advance your business or technology.

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Message from Edmonton Economic Development CorporationThis is a watershed moment for technology and innovation in Edmonton.

Edmonton is well known for our approach to community problem solving and the belief that we can accomplish anything collectively. And we are uniquely positioned on the international stage to play an important role in solving some of the world’s most challenging problems.

As a leading member of Edmonton’s innovation ecosystem, TEC Edmonton is uniquely positioned within this dynamic to lead development of Edmonton’s innovation reputation globally. We look to TEC Edmonton to continue to help create and build world-class tech-enabled businesses, to attract investment, and to fuel the economic growth of our innovation and technology communities.

As a joint venture of Edmonton Economic Development Corporation (EEDC) and the University of Alberta, TEC Edmonton maintains its position as a catalyst for entrepreneurial growth, a leading business incubator and a vital community partner to entrepreneurs, founders and emerging businesses.

The growth of Edmonton-based technology companies is vital to strengthening and building a resilient economy. Our continued support of TEC Edmonton as part of the EEDC family will allow us to take on the challenge together.

Derek Hudson President & CEO, Edmonton Economic Development Corporation | TEC Board Director

Message from the Board Chair As a long-time entrepreneur focused on high-growth technology companies, it’s hard to not be impressed with how far the ecosystem that supports entrepreneurs and technology companies has come. The community supports innovation unlike any other − and TEC Edmonton is the regional cornerstone for supporting growth-stage companies.

In 2018, TEC Edmonton was named 3rd best University Business Accelerator in the world, linked to a university, by the UBI Global Index – an achievement to be truly proud of. The past year has seen the creation of new programs, new accelerators sponsored by major companies that are early adopters, stronger partnerships within the Regional Innovation Network, and the creation of internal partnerships to support access to overseas markets.

While proud of where we are, we strive to reach higher. The strength of post secondary institutions, the quality of our work force, and the opportunity of Alberta corporations becoming early adopters creates the prospect for more company success. As a community, we should embrace bold initiatives that build on the strengths of ecosystem partners. TEC Edmonton will continuously evolve to provide greater benefit to our clients and support our ecosystem partners in fulfilling their mandate. In 2018, TEC Edmonton was ranked #3 in the world – now we are aiming to be #1.

Last year was a fantastic year and I look forward to sharing even more achievements in the years to come.

Wayne Karpoff TEC Edmonton Board Chair President, Willowglen Systems, Inc.

Message from the University of Alberta University of Alberta expertise, discoveries and innovations are helping shape the future. One way to ensure these have the greatest reach and impact is to transfer them into the community via commercialization. The results of this include societal and health improvements, new and improved technologies and economic growth and diversification. At the same time, the experiences gained through interactions between the academic and business worlds inform new research agendas that shape our future.

Since its launch in 2006, TEC Edmonton has helped commercialize many of UAlberta’s research-driven technologies and helped our spin-off companies prosper and grow. The fact that we have 100 spin offs operational today is a strong testament to TEC Edmonton’s expertise and support.

When created, TEC Edmonton was the only North American business accelerator merging university intellectual property with civic and university-based entrepreneurial services. Today, it is ranked one of the world's top university-linked accelerators — named 3rd best in 2018 by UBI Global Index.

We look forward to continued partnership and success with the TEC Edmonton team and our joint venture partner, the Edmonton Economic Development Corporation.

Dr. Matthias Ruth Vice President (Research), University of Alberta | TEC Edmonton Board Director

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• Grant Funding • Prototyping • Service Providers

Innovation Ecosystem

TEC Edmonton

Assessment Factors

Triage Assessment

We’ll customize a plan to help you advance your business or technology.

Action Plan

Our Clients’ Journey with TEC

• Small Technology-Based Business

• Evidence of Market Traction

• Management

• Company Vision

• Uniqueness

• Business Model Basics

• Immediate Priorities

• Readiness

Funded services

• Early-stage entrepreneur coaching

• University of Alberta intellectual property/technology assessments

• University of Alberta spin-off creation

• TEC Health Accelerator

• Merck Invention Accelerator

• DynaLIFE Accelerator

• TELUS T-Squared Accelerator

• TEC Valhalla Angels

• TEC Source Advisory Panel

Shared cost

• TEC Launch Program

• Export Services

Shared cost or fee for service

• Incubation space

• Regulatory strategy

• Market research

• Executive coaching

• Corporate structure

• Business planning

• Market development

• Intellectual property strategy (non-University of Alberta)

• TEC Edmonton-TusStar Accelerator Exchange

• TEC Global Connector

• Accelerating Mining in Latin America

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Innovation system clients do better

In 2017/18:

111 organizations surveyed

37% growth employmentcreated by clients (306 full-time equivalent (FTEs) by 50 clients)

$109 millionannual revenue of clients

$60.5 millionfinancing/funding raised by clients

$32 millionR&D investment by clients

97% survival rateafter one year

Seven-year total:

373organizations surveyed

2,226FTEsemployment created by clients

$1.02 billion7 year client revenue

$504 millionfinancing/funding raised by clients

$278 millionR&D investment by clients

37 spin-off companies createdfrom the University of Alberta in the past 7 years

97% survival rateyear-over-year survival rate for UAlberta spin-off companies

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ClickDishesClickDishes is a social food-ordering app that allows people to order and pay ahead at hundreds of quick-service restaurants. A participant in the TEC Launch Program, ClickDishes moved into the TEC Innovation District in 2017. One of TEC Edmonton’s executives in residence helped the company with structuring sales pitches and marketing, as well as creating valuable connections through the TEC Edmonton – TusStar Accelerator Exchange. Through this program, ClickDishes will go to China to seek funding opportunities. Since the company started working with TEC Edmonton, it has nearly doubled its sales month over month and is focusing on expanding its market beyond Edmonton, Vancouver and Calgary.

Learn more and download the ClickDishes app: clickdishes.com

Client Stories

Royal Canadian Cannabis Royal Canadian Cannabis is on a mission to be the country’s premier cannabis brand by producing Canada's best marijuana. The high-grade medical marijuana production company approached TEC Edmonton in need of:

• a corporate and governance structure;• executive leadership;• access to funding;

• site location recommendations; and• input into production facility design and build.

To address its needs, a TEC Edmonton executive in residence implemented an approach encompassing four key disciplines for sustainable business success:1. People2. Strategy

3. Execution4. Cash

By focusing on these four areas, Royal Canadian Cannabis was able to build a highly credible leadership team that raised over $400,000 of financing in 30 days. This allowed the company to:

• acquire land for a new pharmaceutical-grade facility in Barrhead; • set the stage for institutional financing; and• establish a target for construction scheduled to start in late 2018.

Learn more about Royal Canadian Cannabis: royalcc.ca

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Licensing Stories

WiDyne Technologies Inc. Imagine your countertop surface having the capability to power your tablet, phone or lamp. WiDyne Technologies Inc., in collaboration with Levven Electronics and Landmark Homes, is working on just that. After developing a technology for the transfer of energy through a single wire, Faculty of Engineering inventors Dr. Pedram Mousavi, Adam Maunder and Telnaz Zarifi founded the UAlberta spin-off company. TEC Edmonton worked with the founders to license the technology to the spin off.

Learn more about our Technology Management services: tecedmonton.com//technology-management

BioImmuno Designs Relief for those suffering from inflammatory bowel disease (IBD) may be on its way. Research from BioImmuno Designs into the molecular links between inflammation and cancer has identified several promising drug candidates that work to resolve organ inflammation and alleviate the debilitating symptoms associated with inflammatory disease. Dr. Shairaz Baksh from the University of Alberta’s Faculty of Medicine & Dentistry worked closely with TEC Edmonton to patent the technology and license it into a UAlberta spin-off company. BioImmuno Designs is pursuing commercial development of its inflammation and cancer drugs and is one of the first companies accepted into the Merck Invention Accelerator operating out of TEC Centre Labs.

Learn more about our Technology Management services: tecedmonton.com//technology-management

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Innovation Awards

2017 Innovation Awards – making our region a more innovative placeThe annual Innovation Awards celebrate innovation coming out of the University of Alberta. In its fifth year, the awards recognized:

• Ten research teams with an active private partner with patent awards.

• Four new UAlberta spin-off companies with an achievement award.

This annual event honours UAlberta researchers’ groundbreaking technologies and the commercialization community that helps bring innovations out of the lab and into the world.

Dr. David TurpinPresident & Vice-Chancellor,

University of Alberta

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TEC Edmonton Events

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TEC Centre LabsTEC Centre Labs is a newly constructed space in downtown Edmonton that’s nearly 8,000 square feet of collaboration, office and wet lab space for health technology companies and researchers. TEC Centre Labs is home to two accelerator programs:

Merck Invention Accelerator Advancing the success of emerging health technologies to save and improve lives globally

In early 2018, TEC Edmonton and Merck announced a partnership on a new accelerator for health technology companies looking to reach their next milestone. As the first partnership of its kind for Merck, the program creates collaborations between TEC Edmonton, Merck and early-stage companies while advancing health-related technologies from Alberta and beyond.

Learn more and apply: tecedmonton.com/merckinventionaccelerator

University of Alberta Health Accelerator

The University of Alberta Health Accelerator supports and inspires professional, entrepreneurial and commercial activities within the health sciences. The program has two streams:

1. Primary Investigator/Researcher stream: focuses on identifying and advancing early-stage commercial opportunities from UAlberta research.

2. Trainee stream: trains the next generation of innovators by providing UAlberta graduate and postgraduate learners professional development opportunities in business, innovation and entrepreneurship.

Learn more here: ualberta.ca/medicine/innovation/accelerator

When a technology has been proven in an academic lab, the DynaLIFE Accelerator helps get it adopted into the healthcare system. This last year marked the launch of the DynaLIFE Accelerator, a new partnership between TEC Edmonton, DynaLIFE and the Edmonton Health City Initiative. The DynaLIFE Accelerator helps health-technology companies complete their last mile of development by validating diagnostics in a real-world setting with help from TEC Edmonton and DynaLIFE experts.

Learn more and apply: tecedmonton.com/dynalifeaccelerator

DynaLIFE Accelerator

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A partnership between TEC Edmonton and TELUS, the T-Squared Accelerator advances early-stage information and communications technology (ICT) companies by connecting companies to industry. Recent T-Squared Accelerator company successes include:

T-Squared Accelerator

Learn more and apply: tecedmonton.com/t-squared-accelerator

iSmartways:

Urban planners can now effectively reduce congestion and improve daily commutes using anonymous network data that determines speed and congestion information. University of Alberta spin-off company iSmartways has raised $2 million in seed funding, successfully completed a major pilot project and is in the process of raising a Series-A investment round (the first significant round of venture capital financing.)

SensorUp:

Smart cities can be even smarter with SensorUp’s platform that allows clients to consolidate data from a variety of smart infrastructure, leading to better decision making. SensorUp created an open standard platform that aggregates and coordinates multiple Internet of Things (IoT) systems, and transforms them into actionable insights. Through the Creative Destruction Lab (CDL) Rockies (seed-stage program for massively scalable, science-based companies), the company raised a $2 million investment round and is expanding its management team.

Vivametrica:

Using Vivametrica’s software, data from smartphone and wearable devices can now predict the likelihood of chronic disease and generate personalized health analytics and health scores. With these digital tools, insurers can evaluate risk without the process of medical exams, fluid draws, or lengthy questionnaires, making Vivametrica’s analysis faster, lower cost and more convenient. Through the Creative Destruction Lab (CDL) Rockies (seed-stage program for massively scalable, science-based companies), the company successfully raised a $750,000 investment round.

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Endurance Unlimited’s Go Get Fit app

Through the Go Get Fit app, which gamifies physical activity, healthcare professionals provide fitness guidance to patients, track their progress, and support them in making fitness a part of their lifestyle. The app connects healthcare providers with community-based exercise specialists. This connection supports patients in their everyday life where transformation takes place. Endurance Unlimited first engaged with TEC Edmonton in late 2016. TEC provided market strategy insight, which in part, led to partner connections.

In 2017, TEC Edmonton facilitated:

• Endurance Unlimited’s attendance and participation in the Accelerating Primary Care Conference.

• An application to the Alberta Innovates Accelerating Innovations into CarE (AICE) program – a collaboration between Healthy Heart Institute (Central Alberta Cardiovascular Sciences Department) and Endurance Unlimited

Additionally, in March 2018, the Go Get Fit app was a finalist in Edmonton’s Smart Cities HealthHack competition.

ShareSmart - a Think Tank Innovations product

To reduce the volume of private patient information sent over non-secure smartphone devices, Think Tank Innovations developed the ShareSmart app. Created by a team of privacy law, technology and medical experts, the app enables healthcare professionals to use their own smartphones to take clinical photos and discuss patient cases with colleagues securely.

TEC Edmonton helped ensure relevant stakeholders were present when Think Tank Innovations presented its ShareSmart app to the Surgery and Kidney Strategic Clinical Networks. After the presentation, clinicians immediately installed the app, demonstrating the need for such a platform.

TEC Edmonton facilitated an application to the Alberta Innovates Accelerating Innovations into CarE (AICE) program - a collaboration between the Foothills Medical Centre Burn Treatment Services and Think Tank Innovations.

AnimationLeader Technology’s Physio 4D

To increase time efficiency of the physiotherapists, improve accuracy of prescribing exercises to the patients and increase patients’ compliance, AnimationLeader Technology Inc. created Physio4D™. Physio4D™ is a markerless, motion-tracking system that enables streamlined assessments of patient mobility and posture. TEC Edmonton assisted Physio4D™ with the development and execution of a sales strategy, focusing on chiropractic and physiotherapy specialties. This led to the identification of a new customer segment, which is now a focus of the company. TEC Edmonton also assisted Physio4D™ with a regulatory review in the emerging Software as a Medical Device (SaMD) segment.

Learn more about the TEC Health Accelerator: tecedmonton.com/health-accelerator

TEC Health AcceleratorTEC Health Accelerator - Promoting Alberta health and business innovation

The TEC Health Accelerator is a bridge builder between medical researchers, health entrepreneurs and the commercial medical world. In the last year, the TEC Health Accelerator team kept busy with events and initiatives including:

• Industry Days: connecting emerging companies with industry partners.

• Investment capital sessions: helping companies secure financing.

• Interactions with Primary Care Networks (PCNs) and Strategic Clinical Networks (SCNs) to get feedback for innovators on their technology with the goal of getting innovations adopted into the health system.

• Commercialization support for companies, including market research, strategy development, business development and regulatory assistance.

Recent TEC Health Accelerator company successes include:

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TEC Innovation District & TEC Launch Program

TEC Innovation District | The TEC Innovation District (TID) is a vibrant downtown work and community space that serves as home base for TEC Edmonton’s Launch Program participants. The TID brings entrepreneurs to a one-stop-shop for the resources they need.

TEC Launch Program | The TEC Launch Program is a six-month accelerator program that helps companies at the prototype stage fast track their growth with personalized business advice and mentorship from a team of in-house

experts. Entrepreneurs benefit from working among a like-minded community of innovators and access to TEC’s network of partners. The program also includes a six-month work plan, monthly check-in

meetings, and weekly face time with an assigned executive in residence.

Learn more and apply: TECEdmonton.com/Accelerator

Financial Summary

STATEMENT OF OPERATIONS 2018 2017 for the year ended March 31, 2018

Revenues $ 8,772,597 $ 8,653,544Expenses $ 8,711,312 $ 8,629,413 $ 61,285 $ 24,131

Liabilities and Net Assets 2018 2017

Current Liabilities $ 1,992,037 $ 2,128,508Net Assets $ 1,632,671 $ 1,571,386 $ 3,624,708 $ 3,699,894

Assets 2018 2017

Current Assets $ 3,459,600 $ 3,529,943Other Assets $ 165,108 $ 169,951 $ 3,624,708 $ 3,699,894

STATEMENT OF FINANCIAL POSITION as of March 31, 2018

Joint Venture Partners

Grants Sponsorship & Program Fees

License Fees & Past Patent Recoveries

Other

$2,5

20,4

69

$2,4

67,6

19

$319

,354

$22,

654

$4,0

30,7

13

$2,5

99,6

24

$1,9

25,2

68

$178

,151

$38,

841

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

REVENUE BY SOURCE 2018 2017

$3,3

23,4

48

Cumulative Revenue

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Chris Lumb CEO

Board of Directors TEC ManagmentDarrell Petras Executive Vice President, Business Development

Jay Kumar Vice President, Technology Management

Laine Woollard Senior Legal Counsel, Technology Commercialization

Chris Diaper Director, Strategic Partnerships

Bobbi Elliott Director, Finance, Human Resources, IT & Administration

Jennifer Sheehan Director, Marketing & Communications

Lan Tan Director, Entrepreneur Development

Board Chair Wayne Karpoff President, Willowglen Systems

Board Member Dr. Matthias Ruth Vice President (Research), University of Alberta

Board Member Derek Hudson President & CEO, Edmonton Economic Development Corporation

Board Member Phyllis Clark Former Vice President, Finance & Administration, University of Alberta

Board Member Tim Fell Vice President, Video & Broadband Services, TELUS

Board Member Chris LaBossiere CEO & Founder, Yardstick Testing & Training Experts

Board Member Robert Teskey, Q.C. Former Managing Partner, Field LLP

Board Member Kristina Williams President & CEO, Alberta Enterprise Association

TEC Edmonton thanks Mr. Ferguson for more than five years of service on the TEC Edmonton Board of Directors. We commend him for his support of entrepreneurs and Alberta-based technology companies. His leadership was instrumental in modernizing and transforming our region’s economic development and we wish him all the best in the next stage of his career.

Outgoing Board Chair Brad Ferguson

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Our Partners

BUSINESS DEVELOPMENT NETWORK

Association for Life Science Industries

Odyssey Chartered Accountant & Advisor Paulson Cormier & Associates

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4000 TEC Centre 10230 Jasper Avenue

Edmonton, Alberta Canada T5J 4P6

(780) 492-8977

tecedmonton.com

Photography Credits: Peter Brown

Dale MacMillan Laughing Dog Photography