MicroMetrics presentation at LLNL

MicroMetrics

A High Accuracy, Long-Life Embeddable Stress Sensor

James Kaschmitter MicroMetrics, Inc.

Livermore, CA 94551 (925) 570-7251

[email protected]

MicroMetrics Introduc)on  to  MicroMetrics  

•  MicroMetrics (MMI) provides sensor solutions using a unique MEMS-based Contact Stress Sensor (CSS) invented at Lawrence Livermore National Laboratory (LLNL):

•  Unparalleled attributes: ultra-thin, high accuracy, no recalibration over 30 year design life •  Ideal for embedding in products for life without replacement

•  The CSS has matured over 10 years of development and sensors are available now: •  Consumer: wearable fitness products (wristbands), footwear, helmet concussion monitors, etc. •  Industrial: batteries, robotics, automotive, semiconductor equipment, etc. •  Government/Defense: Stockpile stewardship, Human monitoring/protection

•  Government orders provide cash flow while pursuing large commercial orders

•  The technology is protected by 3 U.S. patents issued to LLNL: MicroMetrics holds a non-exclusive license for the technology and is in negotiations for an exclusive license

•  MicroMetrics is funded by its founder, but is seeking new investment to build and ship samples into key markets and secure initial customer orders over the next 6-12 month

•  First products are in test now, with shipments anticipated in Q4’14

MicroMetrics Contact  Stress  Sensor  Overview  

•  The sensor measures contact stress (squeezing force) between two surfaces

•  The technology was developed to fill a critical gap in measurement technology: –  Measures static and dynamic loads accurately and reproducibly –  Can be embedded in end user products –  Withstands harsh environments

•  Fabricated on thin (~60 micron) low cost, MEMS silicon wafers and packaged in flex circuit cables

•  Can be configured in arrays on the silicon wafer or flex circuit for large area measurements

•  Can simultaneously measure temperature

MicroMetrics CSS  Key  Features  

•  No re-calibration is ever required, unlike competing products •  Factory calibration is good for the life of the product •  Holds calibration across wide temperature range (-40°C to +70°C)

•  Proven accuracy of +/- 3% over 30 year design life

•  Tested to >10,000 cycles with no drift or sensitivity degradation

•  Dynamic measurements up to 200kHz

•  Standard pressure range: 30 – 300 psi •  Other ranges by special order

MicroMetrics The  CSS  is  a  Basic  Tool  for  Many  Different  Markets  •  Commercial

–  Athletic Shoe development and testing –  Human performance monitoring –  Li-Ion Battery swelling and safety monitoring –  Helmet impact monitors (football, cycle)

•  Government/Military –  Warfighter Explosive Impact Mitigation –  Stockpile Stewardship –  Human physiological status monitoring

•  Medical –  Cartilage Mechanics –  Podiatry analysis, orthotics design –  Prosthetics fitting –  Clinical Tumor Monitoring –  Heart rate variability monitoring & biofeedback

•  Industrial –  Composite Layups/Lamination –  Molding –  Presses and sealers –  Gaskets and Bolted Joints –  Roller & bearing surface alignment –  Robotics tactile sensing

•  Automotive –  In-situ Tire Monitoring –  Gaskets –  Impact Studies –  Torqued fasteners

•  And many others….

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MicroMetrics Examples where the CSS is the Only Solution

•  Tactile Sensing in Robots (Contact: HDT/Kinea) –  Ultra-thin, high sensitivity/accuracy, holds calibration

•  Prosthetic’s Fitting (Contact: Dr. Jack Kotovsky) –  CSS holds calibration between loads during fitting

•  Shoe Insoles (Contact: Saucony) –  CSS high bandwidth is critical (200kHz), thinness and life

•  Batteries (Contacts: 3M, Yardney, etc) –  Thin, long life, holds calibration, can also measure temperature

•  Industrial Roller Tensioning –  Embedded in rollers for real-time, long life tension control

MicroMetrics Go-To-Market Strategy

•  How to address the huge number of potential applications, without a huge amount of funding?

•  Solution: Sell inexpensive, easy-to-use kits to our customers so they can do the product development –  Profits from kit sales help sustain the company during the “valley of

death” while waiting for large applications to develop

•  A two-step strategy: 1.  Sell sensor kits to customers’ labs for use in laboratory research,

testing and product development

2.  Our customers’ development labs become familiar with the sensor and demonstrate the CSS in products under development – a natural segway into customer’s new products for sale in larger markets

MicroMetrics Development Kits Go On Sale in Q4’14

•  Development Kits for Customer Evaluation –  General purpose kit for customers to evaluate the CSS for their application

–  Kit includes sensor(s), cable interface, interface box and software

–  To be offered through MicroMetrics website (www.micrometricsinc.com)

•  Key components, with critical know-how, made in U.S. •  Low cost supply chain for common commercial

components already established in China •  Kits in test now for first shipments in Q4

MicroMetrics Near-Term Commercial Products

•  Li-Ion Battery Developers and Users: –  First product is in core competency area –  Measures swelling and temperature when

charging new high energy cells and packs –  Provides advance warning of imminent cell

failure or safety event –  Interest from 3M, Apple, DOE, U.S. Army, etc. –  Uses same H/W and S/W as Development kits

with minor modifications

Cell Swelling Monitoring System

MicroMetrics Footwear and Sports

•  Initial Market: Shoe R&D centers –  Instrument shoes in development in the lab –  Nike, Adidas, etc.

•  Large Scale Market –  Low cost monitor (two CSS: heel and ball of foot)

•  Pace •  Impact force and duration (intensity, slope, uphill vs. downhill) •  Type of activity (weight bearing vs. non-w.b.; running vs. biking vs. walking) •  Total work, power output per unit time, total calories burned •  Couple with physiological monitoring

–  High end monitor with array of sensors in insole •  Data on gait (e.g. heel strike vs. toe strike vs. mid-sole strike) •  More granularity on work output •  Couple w/GPS, elevation gain/loss, and physiological monitoring

•  Bicycle Human Performance Monitor: –  Data on tempo, RPM –  Monitor upstroke and downstroke force –  Total power output vs. time –  Couple w/GPS, elevation gain/loss, physiological monitoring

MicroMetrics The “Invisible Plague of Concussion”

•  What is concussion? –  Concussion is an abnormal brain function that results from an external

blast, jolt or impact to the head, that leads to injury and cause changes in brain function, such as bleeding, neuron damage and swelling. Helmets help to prevent a fracture and absorb some of the impact, but most of the force is still transmitted to the brain

•  The US CDC estimated that >1.7 million Americans suffered a traumatic brain injury in 2013

•  What can be done? –  “Seek medical attention: People do not always know when

they have suffered a concussion and it is crucial that a diagnosis be made. Both time and frequency are critical components of prognosis in cases of brain injury”

–  The CSS can record pressures between helmet and head during an impact, enabling more accurate diagnosis

*Dr Anand Veeravagu, Stanford University http://www.bbc.com/news/health-28262874

“Traumatic brain injury is a hidden epidemic in the US, reaching beyond American football to wounded military veterans and girls' soccer players.”*

MicroMetrics Fitness and Health Monitoring

*http://fortune.com/2014/06/07/what-apples-iwatch-will-and-wont-be/

“The whole sensor field is going to explode,” Tim Cook said last year. Apple telegraphed its plans at Monday’s WWDC keynote when it unveiled HealthKit and announced a partnership with the Mayo Clinic, which is already using remote sensors to track their patients’ vital signs after they leave the hospital.*

2014 Market Projections range from $0.5B - $1.4B**

Source: Ben Arnold, NPD Group http://mobihealthnews.com/28566/fitbit-shipped-the-most-activity-trackers-in-2013/ quoting NPD Group

** .terapeak.com/blog/2013/07/31/fitbit-nike-top-the-market-for-activity-trackers/#.UynU2KhdW1k

MicroMetrics Markets and Projections

Target  Market  for  the  Product   Type  of  Product   Es)mated  Serviceable  

Market  Size  (SAM)  Current  Market  Size    (TAM)  

Future  Market  Size  (TAM)  in  5  years  

Future  Market  Size  (TAM)  in  10  Years  

Commercial  Wearable  consumer  fitness  

products,  e.g.  ac)vity  trackers,  footwear  

2014:      $47M  (20%  of  TAM)        2019:    $500M  (33%  of  TAM)  2024:    $670M  (33%  of  TAM)  

Ac)vity  trackers  only:                          2013:    $238M  TAM                        2014  TAM:    $475M                                    (per  NPD  Group)  

   2019  Est.:  $1.0B    (15%  CAGR)  

2024  Est.:    $2B    (15%  CAGR)  

Industrial:    Automo)ve  

Clutch,  brake  pad,  bolted  joint,  )re  tread  mapping,  gaskets,  brake  pedal,  seat  

pressure  map   2014:    $230M  (5%  of  TAM)      2019:    $627M    (10%  of  TAM)    2024:    $1.28B  (15%  of  TAM)  

$4.6B;    6.4%  CAGR   $6.27B   $8.55B  

Industrial:    General    

Manufacturing:    Bolted  joint,  lamina)on,  clamping,  

injec)on  molding,  connectors,  baaery  mfg,    

wafer  bond/polish  

Defense/Government   IED  mi)ga)on,  robo)cs  2014:    $150M  (SAM~=TAM)    

2019:    $225M                                                      2024:    $550M  

2014:  $150M   $225M   $550M  

MicroMetrics Supplied Market Projections

    SAM  ($millions)  

Market   2014   2015   2016   2017   2018  

Commercial   $47.00   $54.05   $62.16   $71.48   $82.20  

Industrial   $230.00   $244.72   $260.38   $277.05   $294.78  

Defense  &  Government   $150.00   $165.00   $181.50   $199.65   $219.62  

Total     $427   $464   $504   $548   $597  

MicroMetrics Sales Projections

Contact stress sensors for industrial, consumer, and defense/government applications

Year of sales: Year 1 Year 2 Year 3 Year 4 Year 5

SAM (not including Defense/Gov) $427,000,000 $463,770,000 $504,039,580 $548,177,658 $596,595,805    

Expected Market Penetration: 0.01% 0.50% 2.00% 5.00% 10.00%

Expected Sales: $42,700.00 $2,318,850.00 $10,080,791.60 $27,408,882.91 $59,659,580.50

# Units 700 16,563 45,000 135,000 315,000    

Average ASP $210 $140 $85 $70 $68    

   Cost per Unit: $105 $70 $42 $35 $34

   Direct costs $75 $50 $30 $25 $24

   Indirect costs $30 $20 $12 $10 $10

MicroMetrics Summary

•  The Contact Stress Sensor has >10 years of R&D and is deployed in critical weapons applications. The CSS is ready to go to market!

•  MicroMetrics outperforms competing stress sensors and is the only embeddable sensor for precision measurement of stress and temperature without ever requiring recalibration over many cycles

•  MicroMetrics can provide full engineering services to meet specific applications, including custom arrays, and can scale quickly to meet high volume shipments using low-cost contract suppliers

•  Contact: James Kaschmitter

[email protected]

(925) 570-7251