Vapi april2015

“The only choice when it comes to vaporization”

VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL

https://www.vapir.com/


About VapirHeadquarters: San Jose, CAEstablished: 2006• Facility: 5000 sqft• Mass Manufacturing: Guang Dong , China• Employees: 9 full-time• Bulletin Board: VAPI• Revenue: >$20M Total (2007-2014)


2



About Vapir We invent, develop and manufacture revolutionary,

state-of-the-art and user friendly medical-grade vaporization devices.

Our vaporizers extract active ingredients from source by a unique and a proprietary process, and deliver very high quality, natural vapor for the best user experience.


3



VAPIR MANAGEMENT TEAMChairman & CEO: Hamid Emarlou• Wyse Technology (Currently Dell) - VP Ops• Solectron (currently Flextronics) – VP OpsVP Investor Relations and Director: Adam KotkinVP, Product Development: Shahab JalilvandVP, Operations: Mitra SadeghzadehAdvisor: Dr. Shadi Shayegan


4



History

Direct Inhalation

BalloonInflation

Portable

Multi User

Apparatus

2001

Established

Advanced Inhalation Revolution

(AIR)

Patents were filed

2002

First Generation

of Digital Vaporizers

“Classic”

Released

2005

New Models:

“Vapir One”

Vaporizer

“Vapor-Matic”

Vaporizer

2006

VAPIR

Established

&

Acquired

Advanced Inhalation Revolution

“AIR”

2007

New Product Release

“OxygenMini”

Vaporizer

Compact

2009

New Product Release “NO2”

Vaporizer

2013/

2014

New Product Release VapiRise

1.0

&

VapiRise

2.0

2015

New Product Release

Coming Soon


5



Existing Products

VAPIR Oxygen Mini v.4.0

Quiet , Fan Less operation Digital Temperature Setting Works with External Battery Simple to use and efficient


6



Exisitng Products

VAPIR NO2 Portable Digital

Internal Re-chargeable Battery Memory Temperature Gauge Pure Brass Heating Element for Controlled

Heating Digital Temperature Display Simultaneous Re-Charging Battery while

Vaporizer is in use

Portable Size (8 inches x 1.5 inches)


7



Competition

Vapir NO2 Da Vinci Iolite Arizer SoloMSRP $149.99 $169.99 $170.00 $224.00PortabilityElectric Propellant Only ButaneBattery Operation Only ButaneAC Power Operation Only ButaneHeating Element Pure Brass Stainless Steel Aluminum CeramicDigital DisplayAdjustable TemperaturePreset Temp SettingLow Maintenance

Portable Vaporizers Comparison Table




VAPIR Rise 2.0

Serves Up to 4 Users Simultaneously

Forced Air or Fanless Functionality

Supports Both Balloon Inflation and Direct Inhalation

Designed for Loose-Leaf Herbs & Essential Oils

LCD Temperature Display (°F & °C)

Medical-Grade Stainless Steel Vapor Path for Exceptional Flavor & Density

Medical-Grade Ceramic Heating Element

Existing ProductsVAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL

9



Tabletop Vaporizers Comparison Table

VapirRise Arizer Extreme Q VolcanoMSRP $249.99 $239.00 $669.00Heat Up Time ≤1 min 2-3 min 3-4 min

Multi User Application

HEPA Air Filtration System

AC Power Operation

Heating ElementStainless Steel Construction

+ Ceramic HeaterCeramic Stainless Steel

Digital DisplayAdjustable TemperaturePreset Temp SettingFan-less ModeLow MaintenanceBalloon Inflation

CompetitionVAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL



Next Generation ofProducts


• Vapir’s Existing Patents and Pending Patents allow us to further differentiate us from the global marketplace by offering unique and efficient products

• First New Generation Product expected to be released in 2015

• All products being designed in the USA and will meet the highest of safety and efficiency standards

11



CORE: Extraction of natural active ingredients from source by a unique and a proprietary process, and deliver very high quality vapor for the best user experience

Electronic Vaporizer Device

Designed for Maximum Efficiency and User Experience

Mobile and Battery Powered

Enclosed Chamber, Fast Local Heating, Air-Assisted Vaporization (without burning the source plants) and Pure, Concentrated Vapor Delivery

Core TechnologyVAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL

12



ISSUED PATENTS

PATENT APPLICATIONS

Key IP

Patent Number Date of Patent Title

6,095,153 Aug. 1, 2000 Vaporization of Volatile MaterialsUS D489,448 S May 4, 2004 Vaporization Apparatus

US 6,772,756 B2 Aug. 10, 2004 Method and System for Vaporization of a SubstanceUS 6,990,978 B2 Jan. 31, 2006 Method and System for Vaporization of a Substance

Design Patent Application No.

Filing Date Title

61,812,290 Apr. 16, 2013 Multi-User Inhalation Adaptor29,473,910 Nov. 26, 2013 Portable Vaporizer


13



Trademarks

REGISTERED TRADEMARKSTrademark Principal Register

Registration Number

Filing Date Title

Vapir 2,788,,063 Dec. 2, 2003 Electronic apparatus that utilizes digital microchip technology to heat tobacco and other herbs to create a vapor for inhaling.

Nicohale 2,801,471 Dec. 30, 2003 Electric Vaporizer used to promote smoking cessation by delivery of vaporized nicotine pellets.

Vapormed 2,805,681 Jan. 13, 2004 Drug delivery device, namely, inhalers for therapeutic use sold empty.

Digital Air 2,855,556 Jun. 22, 2004 Electrical smoking apparatus, namely, a pipe utilizing microchip technology to heat tobacco and other herbs to create vaporized inhalants and herb disks, battery packs and re-chargers for use therewith.

Vapir 2,868,402 Aug. 3, 2004 Electric Vaporizers for inhaling organic matter.

air2 2,915,972 Jan. 4, 2005 Electrical Vaporizer for vaporization of tobacco and organic materials.

Digital Cigarette 2,965,549 Jul. 12, 2005 Electrical apparatus, namely, electrical vaporizer for the vaporization of tobacco and organic materials.

VapirRise 4,422,828 Oct. 22, 2013 Electric Vaporizers


14



Market - Global

TAM >$2B

Annual Market Growth Rate >16%

Highly Fragmented – no companies with dominant market share

* Source: IBIS World


15



Market - US

Current States Approved for Medical Marijuana

State Laws Regarding the Legal Status of Cannabis in the United StatesU.S. Territories (with the exception of Puerto Rico) are not shown.• State with both medical and decriminalization laws• State with legal medical cannabis• State with decriminalized cannabis possession laws• State with total cannabis prohibition• Cannabis remains a Schedule I substance under federal law as of 2014


16



http://en.wikipedia.org/wiki/Removal_of_cannabis_from_Schedule_I_of_the_Controlled_Substances_Act

Global Customer Base

Worldwide VAPIR Customers


17



Global Customer Base

Worldwide VAPIR Distributors


18



Growth and BrandingVAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL

19



Media

Notable Figures:

When Vapir was featured on a cannabis group’s Facebook: 10K likes and 7,300 likes!

967 Shares and 440 Shares!Audience: Older than you’d expect! Mostly Male.Twitter: Viral posts generate traffic.Social Referrals: Youtube & Facebook Lead!


20



MediaVAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL

21



Recognition

16M Viewers, featuring VAPIR Product: NO2 “Grandmas Smoking Weed for the First Time”

56K Viewers, featuring VAPIR Product: VAPIR RISE

“The vapor [No2] produces is smooth and flavorful, exactly as advertised.” gizmodo.com

“My vaping session did last about 10 minutes. So while I take the unit apart to clean it, that's when I realize that I am quite vaped This unit really works! Then I saw the evenly-brown ABV that came out of the unit and was really happy with the results. No more shaking and fiddling like with the Magic Flight Launch Box.” marijuana.com

“Would I recommend this product to family and friends? You bet your balloons I would. I’ve told more people about this vaporizer than I’ve told people about a lot of things. The Vapir Rise is on my top 5 list of quality products that I’ve enjoyed lately.” 420Magazine.com

“The VapirRise is a worthy competitor to the gold-standard Volcano, but even more versatile with its myriad attachments.” TheCannabist.co


22



Recognition

“We already highly recommended the VapirRise 1.0, no it’s even better. A truly awesome desktop vaporizer, [Vapirrise 2.0] offers everything at a price you can afford.” Vaporizer.co

“The rise hangs easily with the industry’s most powerful table-top vapes. A sleek touch-screen like operation sets off a premium-quality user experience. From start to finish the Rise performs.” vaporizersale.com

“Overall, I was very impressed with the VapirRise…[i]f you don’t own a balloon vaporizer and are looking for an affordable alternative to the Volcano, the Rise is the perfect option for you.” MedicalJane.com

“Make no mistake the No2 vaporizer by Vapir is a beast of a unit that can compete with any other vaporizer out there. 4 out 5 stars.” PortableVaporizerGuide.com

“The design comfortably fits in your hand, it is surprisingly easy to use, and it heats up very fast and gives an amazing vaping experience.” vaporizerjudge.com

“Not only is the Rise durable, but it also boasts rapid warm-up times, is versatile with its interchangeable whip or balloon system (plus group whip!), accurate digital temperature gauge, and HEPA filter. With all these handy features, I can definitely see myself turning to the Rise as my daily at-home vape!” VaporBlog

“The Rise is an immensely convenient unit with great manufacturing quality and unlike other stationary vaporizers in its price category, offers an extremely robust build with absolutely no breakable parts. It is reliable as it is versatile, with an accessory piece to customize every vaporizing situation.” TorontoVaporizer.ca


23



Financials

2014 (9 months) 2015 2016 2017

Revenue 1,246,734 3,000,000, 5,500,000 9,000,000

Gross Profit 600,565 1,500,000 2,700,000 4,600,000

Total OperatingExpense

701,167 975,000 1,875,000 2,475,000

Net Income (100,601) 525,000 825,000 2,125,000

Total Assets 491,011

Total Liabilities 270,384

Projected


24



Growth Strategy

① Grow Sales Increase Online Direct Sales Increase Direct Sales Shops Expand into New Geographies, including US

② Release New Products Product Development & Design

③ Expand Marketing, Branding & PR Enhance Website Graphics and functionality Search Engine Optimization Increase presence in social media Focus on Branding


25



Opportunity

• OPPORTUNITY: Investment into a Fast-Growing Global Business

• ENTITY: VAPIR Enterprises Inco Vaporizer Technology Developer & Product Manufacturer for Medical

Cannabis Userso Double-Digit YOY Growtho >$20M Total Revenue (2007-2014)o GM >40%o Market Size: Multi-Billion USDo Current VAPIR Market Share: <1%

• OTCBB: VAPI


26



Vapi april2015

Economy & Finance

Transcript of Vapi april2015