Plasma Igniter, LLC

IMPACT

Plasma Igniter, LLC

Plasma Igniter, LLCJim Smith, Ph.D.President and CTO

Phone: 304.293.3264Cell: 304.290.9000

James.Smith@plasma-igniter.com

Plasma Igniter, LLCWhat We Do PI has licensed patented,

proprietary RF-based plasma ignition systems

$3bn US ignition system market, plus foreign mkts

Target Licensees

Target markets

Team

Engine manufacturers, ignition system suppliers

Jim Smith, PresidentTom Mahoney, CEODrew Lowery, Lead Scientist

Plasma Igniter, LLC

Plasma Igniter’s Coaxial Cavity Resonance Ignition System is a disruptive technology that will make current spark ignition systems obsolete.

IMPACT

How It Works

• Quarter Wave Coaxial Cavity Resonator (QWCCR) replaces spark plug

• Custom electronics generate and control radio frequency

• QWCCR magnifies RF signal into a cylinder-sized corona discharge

Plasma ignition results in nearly complete, high-speed combustion…

Plasma Igniter, LLC

Timed Discharge Pattern

Plasma Igniter, LLC

Stoichiometric Condition Burn (φ=1.0)

Plasma Igniter, LLC

Spark Plug

Plasma Plug

Lean Condition Burn (φ=0.8)

Plasma Igniter, LLC

Spark Plug

Plasma Plug

Current CAFE standards require 60% improvement by 2025

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20250

10

20

30

40

50

60

27.5

Passenger Car CAFE MPG56.2

Plasma Igniter, LLC

IMPACT…On Fuel Economy

Plasma Igniter, LLC

Plasma Igniter’s Technology could achieve the needed 60% improvement in MPG by efficient combustion of lean fuel mixtures.• Past independent tests show strong

combustion at 80% lean, e.g. 20% fuel savings.

• Current testing will determine lean limit, but 60% or more in fuel savings is possible.

IMPACT…On Emissions

Plasma Igniter, LLC

Plasma Igniter’s Technology reduces emissions from lean combustion at lower temperatures.

• Plasma ignition results in “cool” combustion compared to spark ignition.

• Result is virtual elimination of NOx.• More complete combustion of lean fuel could

virtually eliminate unburnt hydrocarbons.

IMPACT…On Emissions

Plasma Igniter, LLC

Engine testing now underway at WVU’s CAFEE will determine specific emissions

results. Preliminary analysis shows potential to simplify or to even

Eliminate the Need for Catalytic Converters

Market – New Engine Applications

• The U.S. market for automotive ignition systems is nearly $4 billion

• Industrial, stationary, recreational, etc. engines all have ignition systems, representing another multi-billion dollar market

• PI offers greater performance, plug & play technology at similar cost

• Foreign markets create additional multi-billion sales.

Plasma Igniter, LLC

Aftermarket

Plasma Igniter has the only known technology that will increase fuel economy and lower

emissions for the millions of existing spark-ignited engines!

Plasma Igniter, LLC

License-based Business Model• Plasma Igniter, LLC has an exclusive license

– Technology developed at West Virginia University– Licensed by ATA, LLC (Jim Smith, principal)

• PI, LLC will license to OEMs and Tier suppliers• Licenses likely based on market segments

– Construction & agricultural equipment– Recreation vehicles − Automotive– Marine vehicles − Aircraft– Stationary industrial engines

• Licenses also likely based on geographyPlasma Igniter, LLC

A Possible License Scenario

Assumptions:1. One license for U.S. passenger cars2. U.S. new passenger car sales: 15 million/year3. Wholesale cost of PI’s ignition system: $80/vehicle4. Royalty rate of 25% (not atypical in automotive)5. Market penetration of 10% after 5 years6. License fee of 25% of projected 5 year revenue

Plasma Igniter, LLC

Plasma Igniter, LLC

Resulting US License/Royalty Income

5-Year Total: $112.5m

Year 1 Year 2 Year 3 Year 4 Year 5 $-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

Investor ROI from this Scenario

Reminder: This scenario is based on one license in one market.Assumptions:1. 10% royalty to ATA2. $5m retained for continued product development, legal

fees, license development, etc.3. Leaves $96,250,000 for distribution to investors, or

$96,250 per unit4. Current unit price is $10,0005. Equivalent CD return would require 57.2% interest rate

Plasma Igniter, LLC

Progress to Date

• The result of a 20 year on-going R&D program• 2 Patents Issued, 1 continuation-in-part, plus 3 additional

invention disclosures for global patent submission• Development work currently ahead of schedule• Have raised $500k in investment capital, used to

– Meet terms of license agreement with WVU and ATA– Begin industry-recognized live engine testing at CAFEE– Refine electronics, buy parts

• Oral commitment for more than $1m • Additional investment required to maintain schedule

Plasma Igniter, LLC

Use of Proceeds (ROM)ATA License / Assignment Fee $100,000

Intellectual Property, Licensing legal fees $525,000

Development $750,000 Engine Testing $550,000 Electronics, QWCCR Prototypes $100,000 Software $100,000

Vehicle and Field Testing $200,000

Administrative, marketing, and operating costs $425,000 Marketing $75,000 Consulting and Professional fees $100,000 Administrative $10,000 Travel $55,000 Personal Services $185,000

Total $2,000,000 Plasma Igniter, LLC

Key Take Aways

Plasma Igniter’s Ignition System provides:1. Superior Performance to all known competitors: better

fuel economy, lower emissions, multi-fuel combustion capability

2. Fine ignition control based on real-time data3. Proprietary customizable ignition system software4. In-cylinder data will unleash new creativity5. Potential market is multi-billion6. Replacement of the current ignition system is inevitable

Plasma Igniter, LLC

Call to Action

In 2013, PI, LLC will complete development; conduct independent, EPA recognized performance testing; market and negotiate sub-licenses.• Asking $2.62m in return for 30% ownership• PPM and related documents were issued

March 2013, revised in November 2013• $500k raised to date

Plasma Igniter, LLC

This is our opportunity to have an enormous…

IMPACTIt’s In Your Hands!

Plasma Igniter, LLC