Smart water valve p point version 6 copy

Smart Water Valve Business Plan

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Introduction

● XXXXXXXXXXXX is an environmental care, technology development partnership with a goal of developing innovative solutions and products that conserve water, and mitigate water damages by reducing unintended water loss.

● Innovation and development was sparked by the partners’ own personal experiences in which unintended water loss and property damage occurred. This, they learned, was a commonly shared problem.

● When they searched for a solution, they could not find a simple and practical product available on the market.

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XXXX Partners

● xxxxxxxxx ◦ Thirty five years as an entertainment industry executive with a

vast array of experience and success in the film and television business, including orchestrating two initial public offerings along with extensive management and related experiences in several other industries. Since 2003 he has engaged in entertainment industry consulting, book publishing (“The 9/11 Report; The Graphic Adaptation”) and pursuing the Smart Water Valve invention.

● XXXX ◦ Mechanical Engineer. Ten years experience developing

measurement and control instrumentation. Skilled in flow computation, control systems, and electro/permanent magnetic circuit design.

● XXXXXX ◦ Forty years of Engineering and Marketing experience, most

recently as Director of Marketing and Engineering for Fisher Controls Intl. Field Instrumentation Group.

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Background

● Most water conservation efforts are directed at reducing the use of water by limiting volume or flow of water. Examples of this are low volume flush toilets and low flow shower heads.

● Little however, has been done to limit water consumption and damages in situations where something has gone terribly wrong. Examples of these are; toilets that continue to run and broken or ruptured connection hoses.

● Insurance industry studies find these failures one of the major reason for insurance damage claims.

● In many other situations the water may just continue to run for days, unnoticed and undetected. Even the smallest leaks can add up to thousands of gallons a month.

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Smart Water Valve Product Overview

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Smart Water Valve Overview

Cover

Actuate Lever

Battery Cover

Time Select

LED

Valve Body

Outlet Connection

(Top)

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Inlet Connection

(Back)

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Principle of Operation

● With the Smart Water Valve, the user determines and selects the fill time required to operate the water appliance under a normal use cycle. For example: A toilet normally refills in less than 2 minutes.

● With the onset of water flow the Smart Water Valve compares the actual elapse time to the preset fill time.

● If the water flow continues, (even those flows in the drips /sec range) and the elapsed time exceeds the preset time, Smart Water Valve will close, stopping the water flow to the appliance.

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Functional Schematic

Normal Operating State • Water flows through the valve body

past the valve plug and seat. • Water flow moves the flow detection

ram into coil magnetic field, altering coil inductance.

• Microprocessor (µP) detects inductance change, starts timer and checks against user selected fill time

Closed State • µP determines that the flow

exceeded user defined fill time. • µP sends signal to energize actuate

coil, releasing Actuate Lever • Actuate Lever moves to visible trip

position, and plug moves to close off water flow.

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Product Features and Benefits

Physical Features ● Small size installs in tight spaces with simple tools. ● Time Select is conveniently located on front. ● Time Select is easily changed at any time. ● The Actuate Lever is in front. Easy to spot if the valve is open or closed ● The Actuate Lever can be electrically or manually actuated. Added flexibility and

assurance that water flow can be stopped in any situation.

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Outlet Connection 3/8 IPS

Inlet Connection ¼ NPT

1.0

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Product Features and Benefits

User Interface ● Time Select ◦ Conveniently located on the front ◦ Digital switch with 16 preprogramed

time duration periods. No user programming! ● Actuate Lever ◦ Conveniently located to make seeing and

operating it simple. ◦ Shown in tripped or closed position, valve can

be simply reset by pushing up on the Lever ● Battery Installation ◦ When low Battery LED indicates replacement is

necessary ◦ Two screws are remove and the two AAA alkaline

batteries can be installed

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Product Features and Benefits

Technology Advantages The user interface and operation of the Smart Water Valve is very straight forward, however, the technology used is very important in assuring dependable, repeatable, and accurate performance.

Flow

Flow Ram

Flux Path

Magnetic Circuit

● Flow Detection Sensor ◦ Detecting water flow at the start and end of a

water use cycle is critical. Sensing flows as small as 5 drips/sec. is accomplished by using a ferrous Flow Ram that is moved by the flow of water. As the Flow Ram moves, the measured coil inductance increases.

◦ The result is a very repeatable and dependable flow detection method without hysteretic effects seen in discrete switch flow rams. ◦ The Flow Ram is the only wetted moving part.

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Product Features and Benefits

Technology Advantages● Actuate Lever Mechanism ◦ The Actuate Lever is held in the “Latched

Position” by a permanent magnet, core, and pole piece. No battery power is consumed to securely maintain the Actuate Lever in the "Latched" state. ◦ The Actuate Lever is toggled to the “Un-

latched position” when the Microprocessor signals to electrically energize the coil, This counters the permanent magnet in the circuit and releases the Actuate Lever to toggle to the “un-latched” position, allowing the plug stem to travel to the closed position.

Actuate Lever “Latched”

Actuate Lever “Un-latched”

Actuate Lever

Flux Path

Permanent Magnet

Coil Un-energized

Plug Stem

Coil Energized

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Plug Stem

No battery power to maintain normal state. No complicated and unreliable mechanical trip or catch parts.

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Product Features and Benefits

Technology Advantages ● Electronics Design ◦ Simple Digital Design ●Only 16 parts including PCB ●Digital Time Select Switch eliminates confusing user programing. ●“Smart” Microprocessor control advantages ◦ Circuit spends 99.99% of time in sleep state, conserving battery

power. 5 year Battery life. ◦ Diagnostic monitors battery state. LED Flashes on “Low Battery” ◦ Valve will trip to safe state (water off) on “Low Battery”

detection. ◦ Diagnostic check for correct operation. LED flashes during all

“flow events” ◦ Built in circuit voltage and flow detection compensation

algorithm maintain performance parameters.

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Future Product Functionality

● Smart Water valve is a digital electronic device. The capability to add wireless communication is real.

● Why Wireless Communication ◦ Communication ties Smart Water Valve to a Home

Automation system with other devices like Smoke Alarms, Thermostats, Carbon Monoxide detectors. The possibility for early detection of problems and information that can potentially lower insurance cost. ◦ Smart Water Valve can be equipped with a wireless

chip to network with home automation systems, like Google’s nest platform

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Product Features and Benefits

Manufacturability and AssemblyMajor Component Assembly

1. Valve Body 2. Cover 3. Flow Detection Sensor Assembly 4. Electronics and Magnetic Release

Assembly 5. Valve Plug & Stem Assembly 6. Battery Cover 7. Actuate Lever 8. Lever Pin 9. Stem Seal Retainer 10. Battery 11. Fasteners 12. Elastomers

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• Suited for High volume manufacturing • High function, low part count, sub assemblies

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Typical Installation – Toilet 3/11/2015 16

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Product Features and Benefits

Materials of Construction Find Part Material

1. Valve Body High Density Polyethylene 2. Cover High Density Polyethylene 3. Flow Detection Acetyl/SST/Steel/Copper

Sensor Assy 4. Electronics Magnetic ABS/Copper/Steel

Release Assembly 5. Valve Plug & Stem Brass

Assembly 6. Battery Cover Aluminum 7. Actuate Lever Acetyl 8. Lever Pin SST 9. Stem Seal Retainer Aluminum 10. Battery AAA Alkaline 11. Fasteners Steel Plated 12. Elastomers EPDM 13. Springs SST

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• Certified food grade materials for wetted parts • High strength rugged corrosion resistant construction

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Product Features and Benefits

Intellectual Property ● US Patent Protected ◦ US xxxxxxxxxx ◦ US xxxxxxxxxx ◦ US xxxxxxxxxx

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Capital Cost Estimate

Drawing # Drawing Name Material

Manufacturing Method Tooling Cost

WV0001Magnet Circuit, Bottom

1010-20 Steel Annealed stamping $1,000.00

WV0002 Ram Body Acetal injection molding $8,000.00

WV0005 Magnet Circuit, Top1010-20 Steel Annealed stamping $1,000.00

WV0006 Valve BodyHDPE, Color = White injection molding $10,000.00

WV0007 CamAcetal, Color = Black injection molding $5,000.00

WV0014 Packing Retainer 6061 Aluminium stamping $1,000.00

WV0015 Battery Cover 6061 Aluminium stamping $1,000.00

WV0016 Top CoverHDPE, Color = White injection molding $8,000.00

WV0018 Actuator Bobbin Acetal injection molding $5,000.00

WV0025 plug guideHDPE, Color = White injection molding $5,000.00

WV0026 actuate circuit top1010-20 Steel Annealed

stamping + bending $2,000.00

TOTAL $45,000.00

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Product Cost Estimates

Drawing Drawing Name Material Quantity Unit Price WV0001 Magnet Circuit, Bottom 1010-20 Steel Annealed 1 $0.20WV0002 Ram Body Acetal 1 $1.50Wv0004 Magnet Circuit, Sleeve 1010-20 Steel Annealed 1 $0.10WV0005 Magnet Circuit, Top 1010-20 Steel Annealed 1 $0.15WV0006 Valve Body HDPE, Color = White 1 $1.50WV0007 Cam Acetal, Color = Black 1 $0.75WV0008 Cam Shaft 17-4 SST 1 $0.20WV0009 Ram Plug 416 SST Annealed 1 $1.00WV0012 Valve Stem 360 Brass Alloy 1 $0.20WV0013 Valve Plug Acetal 1 $0.50WV0014 Packing Retainer 6061 Aluminium 1 $0.10WV0015 Battery Cover 6061 Aluminium 1 $0.20WV0016 Top Cover HDPE, Color = White 1 $0.50WV0018 Actuator Bobbin Acetal 1 $0.10WV0019 Screw Zinc Plated Steel 6 $0.18WV0020 Screw Zinc Plated Steel 2 $0.06WV0021 Screw Zinc Plated Steel 2 $0.06WV0022 Compression Spring 302 SST 1 $0.10WV0023 Compression Spring 302 SST 1 $0.20WV0024 Torsion spring 302 SST 1 $0.10WV0025 Plug guide HDPE, Color = White 1 $0.10WV0026 Actuate circuit top 1010-20 Steel Annealed 1 $0.50WV0027 Actuate circuit core 1010-20 Steel Annealed 1 $0.20WV0029 Neodymium magnet n48 1 $0.07WV0030 Plug o-ring 008 EPDM 1 $0.02WV0031 Packing o-ring 006 EPDM 1 $0.02WV0032 Flow o-ring 115 EPDM 1 $0.04WV0033 Cover o-ring 015 EPDM 1 $0.03

Complete circuit board - 1 $4.83Winding of sense coil - 1 $0.75Winding of actuate coil - 1 $0.50

8 min assembly @ $30/hr 1 $4.00Per Part Unit Cost $19.72

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Population by State

United States 313,914,040.Alabama 4,822,023.Alaska 731,449.Arizona 6,553,255.Arkansas 2,949,131.California 38,041,430.Colorado 5,187,582.Connecticut 3,590,347.Delaware 917,092.District of Columbia 632,323.Florida 19,317,568.Georgia 9,919,945.Hawaii 1,392,313.Idaho 1,595,728.Illinois 12,875,255.Indiana 6,537,334.Iowa 3,074,186.Kansas 2,885,905.Kentucky 4,380,415.Louisiana 4,601,893.Maine 1,329,192.Maryland 5,884,563.Massachusetts 6,646,144.Michigan 9,883,360.Minnesota 5,379,139.Mississippi 2,984,926.Missouri 6,021,988.Montana 1,005,141.Nebraska 1,855,525.Nevada 2,758,931.New Hampshire 1,320,718.New Jersey 8,864,590.New Mexico 2,085,538.New York 19,570,261.North Carolina 9,752,073.North Dakota 699,628.Ohio 11,544,225.Oklahoma 3,814,820.Oregon 3,899,353.Pennsylvania 12,763,536.Rhode Island 1,050,292.South Carolina 4,723,723.South Dakota 833,354.Tennessee 6,456,243.Texas 26,059,203.Utah 2,855,287.Vermont 626,011.Virginia 8,185,867.Washington 6,897,012.West Virginia 1,855,413.Wisconsin 5,726,398.Wyoming 576,412Puerto Rico 3,667,084

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Popu

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2012

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2012 Census- US population 314 million yr/yr growth < 1.0%

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Market Estimation – Toilet Use

● Toilet Market Size and Splits

◦ A conservative estimate is 1 toilet per person in US ◦ Studies estimated 7-10 million new toilets sold / year with growth rate of 3%

annually, with growth predominantly due to repair and improvements. ● Assuming 10% of these repair/ improvement toilet sales also puts in a Smart

Water Valve, that is 700,000 units. ● In a state like California that has made water conservation a priority the

assumptions work out as follows:California Population: 38 Million * 3% = 1.14 million repair or replaced toilets. Assuming 10% get a smart water valve that is 114,000 units.

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Number of Toilets Market Type

225 million Residential125 million Commercial

350 million TOTAL

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Competition - Segmentation

● Product solutions in the market can be segmented into two types ◦ Centralized or main line devices ● These may have one or more detection sensors ● They are designed to turn off water to all devices on system if any should

have a problem. ● The target market is new construction, usually sold and installed by

plumbing contractors. ● Price range $750 and up.

◦ Distributed or single deployed devices ● Some are specific single purpose devices ● Detection methods vary from volumetric flow, to spill detection sensors. ● Target market typically installed base of various applications. ● Products marketed in wide range of methods, internet sales, distributers,

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Market Segmentation Distributed System Type

FEATURES-> Product

Detect Overflow Leaks

Detect Leaks down the drain

Protection on loss of Main Power

Leak Detection Indicator

ManualBypass

Smart Digital Comm Capable

Comments

Smart Water Valve

The H2 Orb Leak

Currently limited to toilets

The LeakAlerter Acoustic Detection, audible signal

Aqua-Block Mechanical system, shut off water to reset

On Site ProductsFlood Stop

Product adaptations for dishwasher, sinks etc.

Watts Intelliflow

Limited to Washing Machines

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Market Segmentation Centralized System Type

FEATURES-> Product

Detect Overflow Leaks

Detect Leaks down the drain

Protection on loss of Main Power

Leak Detection Indicator

Bypass Comments

Dyna Quip ControlsThe Water Cop

Detection sensors under water heater etc. Audible alarm

The Flood Stopper Detection sensors under water heater etc.

Flo Guard Homeowner switches on system when leaving house

Flo Logic High potential for false trips

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Competitive Pricing

Product Price

Aqua-Block $120.00The LeakAlerter $19.95The H2 Orb $99.00Flood Stop $140.00The Water Cop $380.00The Flood Stopper ($150-$300) est.Flo Guard $750.00Flo Logic $1100.00

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Smart Water Valve Pricing

● Suggested Retail: $65.00 ● Assuming(1) typical Retail Mark-up of 1.34 with a gross

margin of 25.2 %. That suggest a price of smart valve to retailer of $48.50

● Assuming a manufactures cost of $19.72 ● This is a Gross Margin of $28.78 per unit or a 59% GP

margin. ● An initial investment in 100,000 units and the $45,000

tooling is paid off with the first 71,000 units sold. 1) Based on http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/07.pdf White Paper

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Applications3/11/2015 28

water appliances irrigation

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Markets

● Residential ● Commercial ● Institutional ● Industrial ● Government

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