“The only choice when it comes to vaporization” VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
“The only choice when it comes to vaporization”
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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)
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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.
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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Existing Products
VAPIR Oxygen Mini v.4.0
Quiet , Fan Less operation Digital Temperature Setting Works with External Battery Simple to use and efficient
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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)
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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 ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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
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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 ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
• 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
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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
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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Market - Global
TAM >$2B
Annual Market Growth Rate >16%
Highly Fragmented – no companies with dominant market share
* Source: IBIS World
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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Global Customer Base
Worldwide VAPIR Customers
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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Global Customer Base
Worldwide VAPIR Distributors
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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Growth and BrandingVAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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!
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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MediaVAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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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
VAPIR ENTERPRISES, INC. (OTCBB: VAPI) CONFIDENTIAL
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