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VG Smartglass investor summary Q1 2017

Michael Stacey
Michael Stacey

This document provides an investor overview of VG SmartGlass, a company developing smart glass technology that changes opacity through linear polarization instead of rotation. VG SmartGlass owns broad patents on its proprietary technology, which can be applied to glass and window applications, addressing a $13.6 billion market. The technology provides benefits over traditional smart glass such as simple operation, lower cost, no electricity requirement, and energy savings. Financial projections estimate the company will become profitable by 2019 and generate over $11 million in EBITDA by 2020, representing an attractive investment opportunity.

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Investor Overview Q1 2017 www.vgsmartglass.com
PROBLEM THERE MUST BE A SIMPLER SOLUTION ! Traditional window treatments have wide adoption, BUT The Department of Energy named smart glass a must have technology, BUT Are awkward to use Interrupt view Mechanics break Have limited Energy Control Are too expensive Require special wiring Are slow to switch Do not replace blinds 2* Smart Glass is defined as glass that changes opacity when electric current is applied
OFF THE SHELF SOLUTION: POLARIZATION Traditional Approach- ROTATION 3 = VG SmartGlass Innovation- LINEAR SHIFT = TECH DEMO: https://vimeo.com/175640795 Glass privacy and shading actuated by movement Only for round windows For nearly all windows VG SMARTGLASS OWNS BROAD PATENTS ON THIS INNOVATION. IT CAN BE APPLIED TO MANY GLASS AND WINDOW APPLICATIONS.
APPLICATIONS OF VG TECHNOLOGY PRODUCT DEMO: https://vimeo.com/187932297 4
ADDRESSABLE MARKET (USD) 5 Small Format- Privacy Up to 32 x 32 Hospitals/ Labs Hotels Schools/ Universities Government buildings Recreational Vehicle/ Boats Larger Format Privacy / Residential/ Up to 32 x 64 or 64 x 32 Interior Office Hotels Luxury/Smart Homes Residential Door Exterior Commercial and Automotive Up to 72 x72 Commercial building Residential Window Automotive Total Market: $13.6B Market: $2.1B Market: $5B Market: $6.5B
UNIQUE BENEFITS OF VG APROACH 6 Simple user interface Fraction of the cost of smart glass No electricity/ phase change Instant switch Built-in + aftermarket formats 20% to 30% energy savings Wide range of film options THE PROPRIETARY VG SMARTGLASS TECHNOLOGY UNIQUELY SOLVES PRIVACY, GLARE, AND ENERGY PROBLEMS FOR WINDOWS AND GLASS APPLICATIONS
7 PRICE (PSF) COMPARISON Size (In.) Aftermarket Blind Built in Minblinds VG SmartGlass Vision Panels SmartGlass 22x36 44 60 65 145 190 Mfg Price to jobsite/ OEM, installation cost not included Pricing for initial sizes
INTERIOR PRIVACY MARKET VALIDATION 8 600+ units sold in UK 10+ hospital installations in UK Licensed technology in Japan to $15B company (DNP) Initial installations complete in in U.S. and Japan $400K in architectural specifications in N.A. Secured contract manufacturer in Chicago (Monda Window and Door) Multiple internal designs complete Developing fire rated product with for Q2 2017 Product development + promotion commitment by RV industry Confidential Fire rated mfg
OTHER MARKET VALIDATION 9 $50K+ orders from top residential and automotive companies Demo installations complete License agreement in place with residential and commercial window manufacturer in Chicago $100K+ developmental commitments by commercial glass/ window companies Large format product design complete with Tecnoglass/ ES Windows Product development in Japan and Detroit with Toyota and Ford Executed joint development agreement for remote automation Confidential Auto Oem
BUSINESS MODEL EXA OEMS, Distribution channels or jobsites License of Intellectual Property Application Manufacturers Film Manufacturers 10 Product Sales (Contract Mfg)
MANGAGEMENT TEAM Mike Stacey, CEO Co- founder of SmarterShade Inc., 15+ years experience in strategy, operations, business development as entrepreneur and management consultant Jerry Hogan, Design and Engineering Over 35+ years of experience in custom high-performance window design, and applications engineering (Sears Tower, Pentagon, US Embassy in Moscow) Mike Harshfield, Operations 20+ years as operations specialist for large corporations and PE/ VC backed companies. Experience across various industries including high technology and manufacturing sectors 11 Management Team Ron Spielman, Residential and commercial window executive National Renewable Energy Lab (NREL), Window simulation and testing partner John Mckeegan, Building products Sales and Distribution Expert Carl Cobb, Optical Expert Will Glaser, High Technology Expert Key Advisors Product Engineering Resources Abhi Chattopadhyay, Electrical and Mechanical Adithya Menon, Mechanical and Electrical Ryan Tatzel, Optical film specialist
FINANCIAL OVERVIEW 12 VG SMARTGLASS IS SEEKING $750K IN EXCHANGE FOR 20% OF THE COMPANY 2017 2018 2019 2020 2021 Revenue $502,850 $2,905,000 $10,530,000 $23,180,000 $34,680,000 Expenses $920,150 $2,163,000 $5,966,003 $11,578,119 $17,498,342 EBITDA -$417,300 $742,000 $4,563,997 $11,601,881 $17,181,658 EBITDA Margin -83.0% 25.5% 43.3% 50.1% 49.5%
USE OF FUNDS SUMMARY 13 Category Amount Detail Milestones achieved Intellectual Property $100,000 File new patents on film, window design Pursue individual country patents in Europe (EPO) Multiple motes of protection (film, mechanical, window design, automation) Broaden geographic IP coverage Sales and Marketing $350,000 Hire VP of Sales and 2 sales reps Promote current product in trade shows Setup local product showroom Architect Education Add 5 strategic customers Grow pipeline to 5X Add 5 channel partners Add geographies Operations and Engineering $300,000 Hire dedicated engineering team (2 FTE) + COO Build design library for products Formalize licensee fabrication procedures for lamination and fabrication Automation Ongoing film R&D Universal mechanical designs across products Licensee Playbook Turnkey automation system for select products $10 per square foot for film
Investment Ownership Year 4 EBITDA Exit Multiple Exit Value Investor Receives Return IRR $750,000 20% $ 11,601,881 7X $58.009,406 $11,601,881 23X 293% INVESTMENT PROFILE 14
SUMMARY Proprietary technology with VAST MARKET POTENTIAL Solution for privacy/ light/ heat in MANY APPLICATIONS TRACTION in Europe, Asia, and North America RIGHT TEAM to execute CAPITAL-LIGHT business model with high margins 15 For more information contact: Mike Stacey mike@vgsmartglass.com 312-375-2867 www.vgsmartglass.com

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VG Smartglass investor summary Q1 2017

  • 1. Investor Overview Q1 2017 www.vgsmartglass.com
  • 2. PROBLEM THERE MUST BE A SIMPLER SOLUTION ! Traditional window treatments have wide adoption, BUT The Department of Energy named smart glass a must have technology, BUT Are awkward to use Interrupt view Mechanics break Have limited Energy Control Are too expensive Require special wiring Are slow to switch Do not replace blinds 2* Smart Glass is defined as glass that changes opacity when electric current is applied
  • 3. OFF THE SHELF SOLUTION: POLARIZATION Traditional Approach- ROTATION 3 = VG SmartGlass Innovation- LINEAR SHIFT = TECH DEMO: https://vimeo.com/175640795 Glass privacy and shading actuated by movement Only for round windows For nearly all windows VG SMARTGLASS OWNS BROAD PATENTS ON THIS INNOVATION. IT CAN BE APPLIED TO MANY GLASS AND WINDOW APPLICATIONS.
  • 4. APPLICATIONS OF VG TECHNOLOGY PRODUCT DEMO: https://vimeo.com/187932297 4
  • 5. ADDRESSABLE MARKET (USD) 5 Small Format- Privacy Up to 32 x 32 Hospitals/ Labs Hotels Schools/ Universities Government buildings Recreational Vehicle/ Boats Larger Format Privacy / Residential/ Up to 32 x 64 or 64 x 32 Interior Office Hotels Luxury/Smart Homes Residential Door Exterior Commercial and Automotive Up to 72 x72 Commercial building Residential Window Automotive Total Market: $13.6B Market: $2.1B Market: $5B Market: $6.5B
  • 6. UNIQUE BENEFITS OF VG APROACH 6 Simple user interface Fraction of the cost of smart glass No electricity/ phase change Instant switch Built-in + aftermarket formats 20% to 30% energy savings Wide range of film options THE PROPRIETARY VG SMARTGLASS TECHNOLOGY UNIQUELY SOLVES PRIVACY, GLARE, AND ENERGY PROBLEMS FOR WINDOWS AND GLASS APPLICATIONS
  • 7. 7 PRICE (PSF) COMPARISON Size (In.) Aftermarket Blind Built in Minblinds VG SmartGlass Vision Panels SmartGlass 22x36 44 60 65 145 190 Mfg Price to jobsite/ OEM, installation cost not included Pricing for initial sizes
  • 8. INTERIOR PRIVACY MARKET VALIDATION 8 600+ units sold in UK 10+ hospital installations in UK Licensed technology in Japan to $15B company (DNP) Initial installations complete in in U.S. and Japan $400K in architectural specifications in N.A. Secured contract manufacturer in Chicago (Monda Window and Door) Multiple internal designs complete Developing fire rated product with for Q2 2017 Product development + promotion commitment by RV industry Confidential Fire rated mfg
  • 9. OTHER MARKET VALIDATION 9 $50K+ orders from top residential and automotive companies Demo installations complete License agreement in place with residential and commercial window manufacturer in Chicago $100K+ developmental commitments by commercial glass/ window companies Large format product design complete with Tecnoglass/ ES Windows Product development in Japan and Detroit with Toyota and Ford Executed joint development agreement for remote automation Confidential Auto Oem
  • 10. BUSINESS MODEL EXA OEMS, Distribution channels or jobsites License of Intellectual Property Application Manufacturers Film Manufacturers 10 Product Sales (Contract Mfg)
  • 11. MANGAGEMENT TEAM Mike Stacey, CEO Co- founder of SmarterShade Inc., 15+ years experience in strategy, operations, business development as entrepreneur and management consultant Jerry Hogan, Design and Engineering Over 35+ years of experience in custom high-performance window design, and applications engineering (Sears Tower, Pentagon, US Embassy in Moscow) Mike Harshfield, Operations 20+ years as operations specialist for large corporations and PE/ VC backed companies. Experience across various industries including high technology and manufacturing sectors 11 Management Team Ron Spielman, Residential and commercial window executive National Renewable Energy Lab (NREL), Window simulation and testing partner John Mckeegan, Building products Sales and Distribution Expert Carl Cobb, Optical Expert Will Glaser, High Technology Expert Key Advisors Product Engineering Resources Abhi Chattopadhyay, Electrical and Mechanical Adithya Menon, Mechanical and Electrical Ryan Tatzel, Optical film specialist
  • 12. FINANCIAL OVERVIEW 12 VG SMARTGLASS IS SEEKING $750K IN EXCHANGE FOR 20% OF THE COMPANY 2017 2018 2019 2020 2021 Revenue $502,850 $2,905,000 $10,530,000 $23,180,000 $34,680,000 Expenses $920,150 $2,163,000 $5,966,003 $11,578,119 $17,498,342 EBITDA -$417,300 $742,000 $4,563,997 $11,601,881 $17,181,658 EBITDA Margin -83.0% 25.5% 43.3% 50.1% 49.5%
  • 13. USE OF FUNDS SUMMARY 13 Category Amount Detail Milestones achieved Intellectual Property $100,000 File new patents on film, window design Pursue individual country patents in Europe (EPO) Multiple motes of protection (film, mechanical, window design, automation) Broaden geographic IP coverage Sales and Marketing $350,000 Hire VP of Sales and 2 sales reps Promote current product in trade shows Setup local product showroom Architect Education Add 5 strategic customers Grow pipeline to 5X Add 5 channel partners Add geographies Operations and Engineering $300,000 Hire dedicated engineering team (2 FTE) + COO Build design library for products Formalize licensee fabrication procedures for lamination and fabrication Automation Ongoing film R&D Universal mechanical designs across products Licensee Playbook Turnkey automation system for select products $10 per square foot for film
  • 14. Investment Ownership Year 4 EBITDA Exit Multiple Exit Value Investor Receives Return IRR $750,000 20% $ 11,601,881 7X $58.009,406 $11,601,881 23X 293% INVESTMENT PROFILE 14
  • 15. SUMMARY Proprietary technology with VAST MARKET POTENTIAL Solution for privacy/ light/ heat in MANY APPLICATIONS TRACTION in Europe, Asia, and North America RIGHT TEAM to execute CAPITAL-LIGHT business model with high margins 15 For more information contact: Mike Stacey mike@vgsmartglass.com 312-375-2867 www.vgsmartglass.com