Smart Solar Window Business Plan

TECHNOLOGIES Business Plan: Smart Solar Windows for a Carbon Neutral Future May 18, 2015 CEO & Chief Chemist: Christian Erickson Lead Chemist: Ryan Sumner Director of Engineering: James Kintzele Lead Electrical Engineer: Adam Slater Lead Designer: Sarah O’Sell Financial Lead: James Mayther Lead Plastics Engineer: Ashley Loper Sustainability & Marketing Lead: Hannah Bouscher-Gage smartsolarwindow@gmail.com www.facebook.com/wwusolarwindow www.twitter.com/solarwindowtech

TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 2 THE VISION 2 MARKET ANALYSIS 5 MARKETING PLAN 6 VALUE CHAIN 7 DESIGN AND DEVELOPMENT PLAN 8 COMPANY OVERVIEW 10 FINANCIAL PLAN 13 APPENDIX

EXECUTIVE SUMMARY COMPANY OVERVIEW NOVA Technologies consists of an interdisciplinary team of students from Western Washington University (WWU) and the University of Washington (UW) with business, chemistry, design, engineering, and sustainability backgrounds. To date, members of NOVA Technologies have raised $1,079,501 to develop the company’s first product, the Smart Solar Window.

PRODUCT AND VISION NOVA Technologies has created a fully transparent window that generates electricity similar to a solar panel. The Smart Solar Window will enable high-rise buildings and skyscrapers to capitalize on their massive glass surface area to produce localized, clean energy. In order to do this, the window uses nano-particles called quantum dots that capture sunlight, converting a portion which includes harmful UV radiation, into harmless orange light which is redirected to the edges of the window. There, it is absorbed by high-efficiency solar cells protected within the frame. Each Smart Solar Window is wired to electronics that convert this energy to electricity that can be used within the building.

and the opportunity to participate in the Living Building Challenge. Further research identifies San Diego, CA as a favorable location for expansion. Recent policies such as Senate Bill 375 and San Diego Forward: The Regional Plan, have made “building up” and green buildings a priority for “making more efficient use of existing urban infrastructure.”

Beyond the company’s first five years, the Global Tall Building Database from the Council on Tall Buildings and Urban Habitat estimates that 526 buildings over 100 meters tall will be completed around the world in 2015, with predictions that “the green building movement has shifted from ‘push’ to ‘pull’—with markets increasingly demanding no less than green buildings” (World Green Building Trends SmartMarket Report, 2013)

The Smart Solar Window out paces competition, both in efficiency and lifetime environmental durability. NOVA Technologies is currently developing strategic industry partnerships to begin manufacturing a market-ready product. It is not a matter of if this technology will replace every laminated window produced in the world, it is a matter of when.

TIME LINE & OBJECTIVES • FY 2015 - Secure necessary capital investment • FY 2016 - Finalize product design & form strategic industry partnerships for manufacturing, install 200m2 Smart Solar Windows in as pilot project at WWU • FY 2017 - Begin assembly line production for 1000m2 local installation in the North West • FY 2018 - Living Building Challenge Seattle, WA 6,000m2 small office install • FY 2019 - Expand marketing to San Diego, CA for 10,000m2 install in several LEED Gold or Platinum offices • FY 2020 - First high rise building installation, 20,000m2

MARKET OPPORTUNITY The National Renewable Energy Laboratory (NREL) estimates that “approximately 48% of businesses are unable to access solar solutions, due in large part to either insufficient roof space or too many establishments within a property”.

After several university-connected projects in Bellingham, WA, NOVA Technologies will focus marketing efforts towards building developers and architects in Seattle, WA. This city is a prime candidate for a beach head for its minimum LEED Silver building codes, rapid urban growth,

FINANCES NOVA will operate at a deficit for the first two years in order to penetrate and establish the brand within the market. After selling approximately 5,300 m2 of windows and breaking even in 2018, we will continue to expand and set the industry standard for transparent solar windows. By acquiring only 1% of our identified market, we can realize a sustainable and profitable business model. We are asking for $1.37 million for a 20% equity stake in NOVA Technologies.

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THE VISION A SKYLINE OF ENERGY GENERATORS NOVA Technologies is proud to present the Smart Solar Window (Fig. 1), a transparent window that generates clean electricity like a solar panel. Patent pending nanotechnology, called quantum dots, are suspended within a polymer film in the central window pane, in an assembly called a luminescent solar concentrator (2). These nanoparticles absorb and shift sunlight photons (1), both diffused and direct, from broad spectrum UV rays to orange. This “stoke shifted” light is redirected to the edges of the pane through an optical coupler that focuses the light (3). There, solar cells create renewable energy (4) that is stored in a low energy LiFePO4 battery (5) before being converted for use by the window’s electronics (6).

A system of these windows can be used power the building (7b), or in synchronization with the

building’s heating, ventilation and air conditioning (HVAC) system (7a). Local functions could include opening and closing the window to create cross ventilation as needed in response to environmental conditions like temperature, weather, pressure, or safety reasons like air contaminants such as carbon monoxide or smoke.

Smart Solar Windows can capture 5% of the sun’s energy, or 50 watts per square meter of window. For green builders, contractors, and architects, this means design for energy savings through HVAC integration, reduced carbon emissions, increased building valuation, and a reduction in electricity costs for energy sold back to the grid over the window’s 30 year lifetime.

Imagine a skyline full of solar energy generators.

NOVA Technologies aims to create a lasting legacy for a cleaner, greener urban environments.

Fig. 1 How the Smart Solar Window Works

(7a) HVAC

(4) Solar Cells (1) UVB light

(2) Quantum Dots (3) Optical Coupler

(5) LiFePO4 Battery

(6) Electronics

(7b) Building Use

MARKET ANALYSIS THE MARKET OPPORTUNITY “The green building movement has shifted from ‘push’ to ‘pull’—with markets increasingly demanding no less than green buildings” (World Green Building Trends SmartMarket Report, 2013). Today, resource sustainability is a necessary aspect of every product, service, and design of society’s built environment. In 2013, U.S. Energy Information Administration estimated that 40% of total U.S. energy was

consumed in residential and commercial buildings. Because of this, cities have begun requiring architects and building developers to meet this growing demand affordably and sustainably. The problem is, high rise buildings and skyscrapers do not have the necessary roof space to effectively utilize most renewable energy options, including typical rooftop photovoltaic solar installations. NREL estimates that “approximately 48% of businesses are

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unable to access solar solutions, due in part to either insufficient roof space or there are too many establishments within a specific area”.

The Smart Solar Window adds value for all stakeholders by solving this problem. For developers and architects looking for energy efficiency solutions, installing a system of Smart Solar Windows can achieve up to 40% of LEED Gold certification criteria, a highly publicized and recognized accomplishment. Building owners then receive value in reduced electricity bills, increased building valuation, and carbon offsets.

The U.S. Energy Information Administration estimates that the price of electricity is expected to rise 1.5%-1.8% annually, up 22-35% by 2040. In favorable climates, integrating a motorized version of the Smart Solar Window with a building’s HVAC system, using software by industry leaders such as Honeywell and Nest, is estimated to reduce a building’s HVAC energy consumption by up to 30%, for a total electricity use and cost reduction of 12% (NREL, U.S. Small Business Administration). Over all, cities gain value from achieving development goals, smart electricity management, and supporting the global effort to improve air quality for healthy, carbon neutral communities for years into the future.

The demand for clean energy technology is also on the rise globally. Governments around the world are increasingly providing incentives and subsidies to promote clean, economical energy innovations. In the U.S., the Department of Energy has issued the SunShot Initiative, with a vision of making the total cost of solar energy competitive with other forms of energy like coal, gas, and oil. The initiative supports efforts by private companies, universities, and national laboratories to drive down the cost of solar electricity.

Additional opportunities include the Environmental Protection Agency (EPA) P3 Competition, through which the Smart Solar Window recently won a $75,000 grant, the J.M. Kaplan Fund, which could grant the company $175,000, other networking events such as White House Demo Day and the Seattle Clean Technology Showcase, as well as joining groups

like Climate Solutions, which supports clean energy improvements and recognizes the U.S. West Coast and British Columbia as the fifth largest world economy seeking sustainability in the energy sector.

526 buildings over 100 meters tall will be constructed around the world in 2015, with over 30% of building projects expected to be green in coming years. By capturing a mere 1% of this market, the Smart Solar Window will become the first commercially viable solar window technology.

The investments of the next few years will allow us to establish ourselves within the market as a viable renewable energy source.

COMPETITION AND DIFFERENTIATION NOVA Technologies’ primary competitors include; Michigan State University, Ubiquitous Energy, SolarWindow Technologies, and Pythagoras Solar. Today, there are no competitors with scaled solar window business operations.

Although some competitors are researching and developing similar, yet less desirable technological approaches, to a solar window technology, none go beyond the glass to provide a whole product solution.

NOVA Technologies’ competitive advantage includes the pending patent for creating a solar window using our specific broad spectrum quantum dots (U.S. Patent Application #61841887). This technology is also tunable, providing our customers with a variety of choices in window color and transparency, in addition to absorbing a wider range of usable light.

Furthermore, NOVA’s quantum dots are the most environmentally stable, lasting up to 30 years in independent accelerated lifecycle testing.

Competitors using organic dyes can only expect to achieve a 10 year window lifetime.

Nova’s Smart Solar Window’s efficiency levels of 5% energy conversion are at par with top solar window competitors. Relative to solar cells which have up to 20% efficiency, solar windows optimize the mass amount of current window space in urban environments, allowing the same building foot-print to generate more energy.

Competing companies are focusing solely on the power generating attributes of their technology, while others are enhancing the

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thermal properties of windows to reduce building energy consumption. NOVA’s differentiation is two-fold; generating usable electricity while providing the opportunity to optimize building HVAC systems.

Our closest competitor, Michigan State University, also utilizes quantum dot technology for a semi-transparent window pane. However, their technology is limited to narrow spectrum UV absorption and emission in the infrared spectrum.

Meaning, their quantum dots will never emit as much light to the solar panels as the ones in the Smart Solar Window. In addition, independent tests showed that their organic dyes have a lifetime of 10 years before degrading, one third of the expected lifetime for Smart Solar Windows.

The competitor that has seen the highest amount of external investment, SolarWindow Technologies, is developing a scalable “roll on” film application. However, their technology is not clear or colorless, and has what appear to be micro-wire grid lines that obscure the view.

Additionally, the external roll-on application is exposed greater weathering, reducing its total lifetime. To further outperform SolarWindow Technologies, NOVA Technologies recently received an $11,000 grant to develop a spray-on, scalable, polymer film application for our next product model.

MARKET SEGMENTS Two market segments exist within the target market of green building developers and architects; high and low rise buildings. Our secondary segment, high rise and skyscraper developers will strictly utilize the power generating properties of the Smart Solar Window to produce localized energy for their building. Benefits to these customers will include electricity savings, increased building value, and carbon offsets. Unless designed otherwise, most high-rise buildings and skyscrapers have static windows in order to maintain building air pressure for HVAC control. According to the Global Tall Building Database from the Council on Tall Buildings and Urban Habitat, there were 338 buildings over 100 meters tall that were completed in 2014 globally. As the demand for construction expands, an estimated 526

buildings of the same size are now planned for 2015.

In addition to these trends, the Chief Economist at The American Institute of Architects published a 19% YTD increase of new office building construction in 2014, with the hotel market increasing at 11% YTD in 2014. While some of these skyscrapers use concrete as their main exterior material, others, like the One World Trade Center offer over 25,000 square meters of architectural glass that could be capitalizing on the solar energy hitting that space.

San Diego, CA, is identified as a prime city for expansion due to its wide support of solar energy development and recently enacted plan, San Diego Forward: The Regional Plan, implemented in response to California’s Senate Bill 375, which aims to make “more efficient use of existing urban infrastructure”, “growing up”, to reduce green house gas emissions.

Using solar radiation data for San Diego, CA, we have evaluated several case studies based on annual electricity generated for the north, east, south, and west side of buildings within our primary and secondary target market segments (Fig. 2). By making a marginal upfront investment in Smart Solar Windows instead of traditional windows, it is estimated that a high rise building such as the 27 story First National

Fig. 2 Annual Solar Radiation Data for San Diego, CA, Total Energy Available

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Bank in San Diego, CA, will reduce electricity bills by $133,417, realize a return on investment (ROI) of 227% and an internal rate of return (IRR) of 7% over the 30 year lifetime of the window. If designed for HVAC optimization, the building will receive a $363,839 reduction in electricity costs, an ROI of 620%, and an IRR of 22%.

buildings, Retail/Dining/Personal units, and Public Buildings and Churches. While NOVA Technologies is still acquiring this data for the entire west coast, extrapolations based on a per capita basis foresee that there are approximately 300+ new construction buildings annually that would be able to utilize the Smart Solar Window.

The primary and most profitable target segment we have identified is low-rise office buildings.

These structures can be non-governmental organizations and small businesses such as health care facilities, hotels, offices, government and city buildings, and other buildings such as churches. Building owners will be able to realize savings from energy production as well as HVAC integration for cross ventilating the building.

According to the Commercial Building Energy Consumption Survey (EIA), the average office building is 14,900 square feet, with an average ratio of windows to floor space of 15%. It is also estimated that the average per square foot electricity usage in such a building is approximately $1.34. If NOVA Technologies were to strategically replace half of an average low-rise office building’s windows, Smart Solar Windows can provide the building owner an IRR of 7%, and an ROI of 227.3% over the lifetime of the window.

In Los Angeles, CA in 2014, there were over 120 building permits for Office/Professional

MARKETING PLAN HOW WE WILL REACH OUR TARGET MARKET NOVA Technologies has developed a comprehensive plan, lead primarily by our sales team, to reach building developers and architects. This small sales team will continuously find and contact green building developers and architects using city/state listings of upcoming construction and building permits, since building developers often contact an architect and construction contractor to design the building and develop a budget for the project.

The sales team will also travel to networking events such as industry trade shows, competitions, and showcases. By increasing architects and building developers awareness of the the Smart Solar Window, they will be more likely to design for and suggest the product’s use. To make the most of Smart Solar Windows, low-rise buildings will need to be designed for cross ventilation and/or dynamic shading. The sales team will target LEED Certified designers to incorporate these minor changes. Maintaining

a consistent online presence will continue to increase product support. The Smart Solar Window currently has 399 followers on Facebook, Twitter and Instagram.

Our website will use building information modeling optimized to provide a way for potential customers to analyze the features and benefits of the Smart Solar Window and estimate total savings for their building. Upon first phone or email contact, architects and building contractors will be assigned a specific sales employee to maintain an ongoing personal relationship in planning their orders, with the option to receive a physical sample pack of efficiency, tint, color, framing, and power output options for the Smart Solar Window.

MARKETING GOALS Objective 1: NOVA Technologies will continue to rely on positive publicity to bring attention to the Smart Solar Window.

Currently, NOVA Technologies Smart Solar Window has gained recognition at both the national and regional levels by winning several

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competitions. The Smart Solar Window has also been covered extensively in local newspapers like The Snohomish Times, The Bellingham Herald, a television segment on KOMO4 News, the online technology website GeekWire.com, and was mentioned internationally in an article by the National Chengchi University in Taiwan.

People around the world are excited about the possibility of a future where windows offer the enhanced and unobtrusive ability to contribute to combating global climate change and enabling a carbon neutral future.

Community involvement is a valuable opportunity to bring further attention to the windows. In Fall 2015, the Smart Solar Window will be shown to hundreds of fifth graders from across the community at the annual Compass to Campus event at WWU’s campus. The interactive booth will serve to inspire younger generations to pursue science and innovation in their future academia, so that one day they too can develop amazing technologies.

Objective 2: Advertise the Smart Solar Window directly and in physical form to green builders and architects. To create the

awareness of the windows specifically to the target market, the sales team will visit trade shows, expos, and conferences that highlight innovative green building technologies and associate with LEED; The U.S. Green Building Council. These expos could include The Green Build: International Conference and Expo, the Facilities Expo, and White House Demo Day. Objective 3: NOVA Technologies will continue to raise awareness through regional and national based competitions.

This includes the J.M. Kaplan Fund in New York City, where NOVA Technologies is competing to win $175,000.

Objective 4: NOVA Technologies will create broad and direct awareness of the Smart Solar Window via the internet. This will include inbound and content marketing, email marketing, social media, and marketing directly to prominent architecture and general contracting firms.

After generating interest and establishing initial contact, an individual sales employee will be assigned to each interested person to educate them and help plan their building project.

VALUE CHAIN INDUSTRY PARTNERSHIPS NOVA will strategically form alliances with target industry experts to benefit from their already established infrastructure, capital intensive machinery and other assets, and complex manufacturing processes. These experts include glass manufacturers, vinyl and acrylic extruders, electronics manufacturers, quantum dot manufacturers, and solar cell manufacturers.

By partnering with these specific businesses, NOVA can receive wholesale prices on window components, which we will then use to assemble our own branded window. Upon receiving an order through our sales team, each production batch will be prefaced with building-specific adjustments by our mechanical engineer. From there, the supply chain manager will organize window components to arrive on a just-in-time basis throughout the manufacturing process.

MANUFACTURING PROCESS First, we will recieve quantum dots from QDVision, in Lexington, MA, or Nanosys, located in Palo Alto, California. As previously mentioned, our proprietary quantum dot implementation is complementary with industry standard laminating glass processes. These dots will be delivered to Viracon or Cardinal Glass, both distinguished glass manufacturers in the U.S., who will be able to incorporate the quantum dots into their laminating processes. NOVA will receive the laminated insulated glass units to order, as well as appropriate amounts of solar cells and extruded acrylic for the optical coupler.

From here, NOVA will hire several assembly line technicians to glue and solder the optical couplers and solar cells onto the laminated glass units to create the inner frame assembly.

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Next, extruded vinyl and hinge assemblies will arrive at our contracted window manufacturer, Milgard or Pella Windows, along with the completed inner frame assemblies. These will be cut and sealed to specifications. All individual windows will arrive back to NOVA Technologies with wires extending from their frame. Depending on the purpose of the window, our assembly line technicians will attach electronics such as a string converter, a micro-inverter, or a wireless motor assembly to the window before distribution to the building construction site.

By only focusing on what NOVA Technologies does best; quantum dots and electronics assembly, quality management can be achieved throughout the manufacturing process. After-sale support will continue in the form of an industry standard 10 year warranty on manufacturing defects. Since each system of Smart Solar Windows is internet-of-things connected, software updates can happen wirelessly throughout the entire product lifetime.

DESIGN AND DEVELOPMENT PLAN PRODUCT STATUS Currently, NOVA Technologies has a working, proof of concept prototype that produces electricity and connects wirelessly via Bluetooth to a mobile phone that symbolizes a building’s HVAC system (Fig. 3). Integrated environmental sensors can act as a building’s HVAC system would tell the window to open and close under pre-programmed conditions. In April, 2015, NOVA Technologies competed at and won the EPA P3 Sustainable Design Expo. Our team won the top funding prize of $75,000 to develop the our Smart Solar Window technology further, including improving our efficiency, optimizing energy conversion electronics, and incorporating internet connectivity to each smart window.

INTELLECTUAL PROPERTY Our innovative product currently has a patent pending (U.S. Patent Application #61-841887) for the quantum dot technology recipe and use in a solar window application. This patent is currently 50/50 jointly held between WWU and the UW. Individual patent applicants include our primary chemistry advisor, Dr. David Patrick, a professor at WWU, and Christian Erickson, a current Ph.D. Chemistry student at the UW, and recent Master’s student of Dr. Patrick.

Negotiations and conversations over the patent are favorable for our product development, and likely to move forward once the patent is officially approved and the necessary agreements have been made. NOVA is expecting to have access

Fig. 3 Proof of Concept Smart Solar Window “HVAC Integrated” Prototype to and use the patent in our business with the negotiation of a royalty rate, likely 1-2% of total sales.

DEVELOPMENT GOALS While our prototype is able to prove that our concept and technology work, there are still some minor developments that will need to be finished before it can be put on the market.

Currently, we are experiencing delamination issues within the inner quantum dot polymer layer. This is due to the limitations of university lab equipment, which is designed for use with small chemistry lab samples. This problem can be fixed with the help of a commercial partner and their standard glass lamination process. Laminated glass has an interlayer made of either

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polyvinyl butyral (PVB) or Ethylene-vinyl acetate (EVA), which we are currently developing a spray on quantum dot application for. These industry standard materials are compatible with our quantum dots and are therefore able to be used in the industry standard manufacturing process for creating laminated glass windows.

Additional development is needed to test the optimum shape of the optical coupler unit, triangle vs. the current square extrusion. Lastly,

the frame of our window will be designed to meet industry standard insulation specs, materials choices, and construction methods.

Our current prototype was built from the ground up by our team at WWU with functionality and rigidity in mind, for purposes of demonstrating proof of concept, and withstanding transportation across the United States for competitions, expos, and other demonstrations.

COMPANY OVERVIEW HISTORY NOVA Technologies is the culmination of nanoparticle research conducted by Professor David Patrick and Christian Erickson at Western Washington University and the Gamlin Group at the University of Washington. This research was initially funded in 2012 by a $969,501 grant from the National Science Foundation for the purpose of developing luminescent solar concentrators.

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The team that now operates NOVA Technologies is comprised of students who joined together in November 2013 and began the product development and marketing of the Smart Solar Window. Since then, the team has competed in several local and regional sustainability and business competitions and a national event for a government agency. Significant milestones are as follows:

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2012: National Science Foundation Grant $969,500 November 2013: First Team Meeting and Solar Window Discussion December 2013: Patent Application for Zero-Reabsorption Doped-Nanocrystal Luminescent Solar Concentrators, Current Status= Patent Pending April 2014: UW Environmental Innovation Challenge (EIC) 2nd Place $5,000 April 2014: UW EIC Clean Energy Award $5,000 April 2014: NW Washington Sustainability Challenge 1st Place, $10,000

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May 2014: UW Business Plan Competition, Top 16 Teams May 2014: Green Jobs Segment on Komo News May 2014: EPA P3 Phase 1 Grant, $15,000 April 2015: EPA P3 Phase 2 Grant, $75,000 April 2015: Applications for White House Demo Day and J.M. Kaplan Grant April 2015: Presented Smart Solar Window to Washington State Senator Maria Cantwell May 2015: UW Business Plan Competition, Top 16 Teams

MANAGEMENT NOVA Technologies was founded by a diverse management team that plans to form an LLC within Washington State by July 2015. This team includes; Christian Erickson CEO and Chief Chemist, Patent Holder, Earning a Ph. D. Chemistry, Oversees development and fine-tuning of quantum dots James Kintzele Director of Engineering, graduating with a B.S. Electronics Engineering, Oversees engineering design and implementation for development and optimization of power generation, energy storage, and communication interfaces.

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Sarah O’Sell Lead Designer, graduating with a B.S. Industrial Design, Minors in UX Design and Business Administration, oversees CAD modeling, development of window frame, and design of company’s print/online media Ryan Sumner Lead Chemist, earning a M.S. Chemistry, responsible for research, development, and optimization of luminescent solar concentrators using the proprietary nanoparticle technology Hannah Bouscher-Gage Sustainability and Marketing Lead, Earning a Double Major with B.A. Business and Sustainability, B.A. Marketing, Minor in Entrepreneurship, Oversees life cycle assessment and sustainability, develops social media and offline marketing plans James Mayther Financial Lead, graduating with an MBA, Conducts market and product analysis to form accurate financial projections and statements for business growth Adam Slater Lead Electrical Engineer, graduating with a B.S. in Electronics Engineering, has developed the design and optimization of power generation, energy storage, and wireless communication electronics

Ashley Loper Lead Plastics Engineer, earning a B.S. Plastics Engineering, Overseeing the development of polymers within the window to increase light-transfer efficiency. Advising on design development for manufacture.

BOARD OF DIRECTORS • Ed Love, Head of Business Department, WWU (Business Advisor) • David Patrick, Professor of Chemistry, WWU (Scientific Advisor).

FUTURE TEAM MEMBERS • Assembly Line Technicians: Assemble window, optical coupler, solar panels, electronics, and packaging for final product • Software Engineer: Internet and wireless connectivity, online presence, and app development • Manufacturing Engineer: Lead the assembly floor and develop project-specific CAD models for the Supply Chain Engineer to order • Supply Chain Engineer: Develop and coordinate streamlined manufacturing process and assembly lines, may include travel • Sales/Customer Service Team: Contact building developers and architects, lead the team at trade shows, initiate direct calls to establish contact with potential customers • Consultants: Offer industry expertise in manufacturing, business, marketing, design, financial services, engineering, etc.

An important role to fill includes hiring a consultant with experience in the process of high-rise and low-rise building development.

• Human Resources: Will be necessary as the business scales and expands the assembly line workforce SCHEDULE & GOALS Fiscal Year 2016: NOVA Technologies will launch by installing a pilot project at WWU, where the window has been designed and developed. The team has been in contact with the University’s Architect, leading to

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conversations about the best location for an installation based on upcoming renovations and new construction. The installation of the Smart Solar Window provides WWU with an opportunity to become a leader in the next generation of green technology and will also bring attention and excitement for University outreach.

Fiscal Year 2017: After a successful installation at WWU, NOVA will partner with the Downtown Bellingham Partnership or the Port of Bellingham to find a building where new windows can be installed and displayed to create an informative and interactive space that is open to the public.

NOVA will use these projects as networking and marketing opportunities with the goal of partnering with an investor who will fund the next stage of the project in which the Smart Solar Window will expand from small-scale limited manufacturing capabilities to an operation capable of fulfilling orders on the order of an entire skyscraper.

Fiscal Year 2018: This expansion will take place in the Pacific Northwest beginning with participation in the Living Building Challenge in Seattle, WA. By connecting with regional green organizations such as Climate Solutions and participating in industry trade shows, NOVA

Technologies will move its way down the West Coast to San Diego, CA, where climate and environmental policies are ripe for installations that can utilize cross ventilation and/or dynamic shading, as well as offer exemplary power generation.

Fiscal Year 2019: NOVA has chosen to focus the sales of our windows that integrate with HVAC systems in the San Diego market because of the enormous and existing demand for a clean, renewable energy, as well as the desired environment and climate. The state of California is already implementing strict goals and policies requiring that all buildings become LEED certified by 2020. The Smart Solar Window will take steps towards achieving these goals by offering a window what provides up to 50% of a LEED silver certification with installation alone.

Fiscal Year 2020 & Beyond: Our power generating windows are able to be sold all around the world to the hundreds of high and low-rise buildings that are constructed every year.

If we can can acquire 1% of this market, NOVA will have a sustainable and profitable business model.

FINANCIAL PLAN PRICING Our specific value-chain allows us to create a Smart Solar Window for approximately $490 per m2 of window in cost of materials. When we reach our break even point in 2018, at 5,300m2 of windows, and a markup of 35% for a $750 selling price, NOVA’s income margin will be approximately 2.4%. Once a larger production scale is reached in 2020, our income margin will increase to approximately 17%. See Fig. 4 for the product cost breakdown with key cost drivers.

Fig. 4 (Right) Detailed Product Cost & Key Drivers

Profit: $123, 16% Operating Margin: $123, 16%

Electronics: $100 Glass: $130

Product Price: $750/m2

Solar Cells: $182

Quantum Dots: $50

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START-UP GOALS Refer to the Income Statement on the next page (Fig. 5).

Fiscal Year 2016: NOVA will retain current team members, proactively seeking strategic partnerships, and hire a number of consultants to establish the infrastructure for a thriving business.

We will rent out a small warehouse in order to meet the demand and scale of our small pilot project/s as well as the following years orders.

We estimate cash expenditures of approximately $475,358, with a net income loss of $423,358.

Fiscal Year 2017: The success of our pilot project will prove to building developers and contractors in our target market that the Smart Solar Window works. Therefore, we expect to gain more orders to the magnitude of 1000 m2 of windows in the form of smaller office and professional buildings in Downtown Bellingham through networking with the organization’s downtown renovation team. In order to ensure quality assurance, specific equipment for assembly lines will be purchased and greater warehouse space will be rented. NOVA will hire a sales team, assembly employees, and consult a building contractor in order to fulfill our anticipated market demand and orders.

We expect cash expenditures of approximately $891,128, with an operating income loss of $638,628.

Fiscal Year 2018: This is the year that NOVA Technologies will break even. We expect that selling just over 5,300 square meters of windows will allow the company to begin making a profit.

This year, we plan to have our first full building installation in Seattle’s Living Building Challenge.

We will increase assembly employees, as well as bring on a customer service representative and a human resources manager. Our marketing budget is approximately $20,000 for the sales team to travel to expos and meet with interested customers. We have also budgeted $50,000 into any assembly line equipment that may help NOVA realize greater turn around efficiencies. NOVA Technologies expects to have expenditures of over $1.4 million, but positive

pre-tax income of $106,160.

Fiscal Year 2019: By now, NOVA Technologies has established itself as a reputable brand within the market. Clients are happy to support sustainable practices and enjoy the return their investment is making them. Demand will start to outgrow initial capacity and we expand into a new warehouse to fulfill our orders of 10,000 square meters of windows. Again, we will hire more assembly employees to fulfill demand and an increased sales force to meet sales goals of several low rise office buildings, and a high rise installation for 2020. While we expect expenditures of $1,660,056, we expect a pre-tax income of $864,944.

Fiscal Year 2020: With our established reputation and products on the market, we expect to be able to sell more windows to highrise buildings in the United States and potentially around the globe. With a growing number of employees to meet manufacturing demand, we expect to have a pre-tax income of $2,589,258.

FUTURE EXPANSION The quantum dot technology within the Smart Solar Window’s central pane is not limited to window applications. Current interests include applying a quantum dot layer above photovoltaic cells, thereby creating the most efficient solar panels on the market today. Other applications could include developing the luminescent solar concentrator technology for consumer electronics or automobiles.

EXIT STRATEGY NOVA Technologies is considering licensing the patent and solar window technology to a well established window manufacturer that will want to create their own brand of solar windows. They would likely be able to deliver the windows for less cost due to their lower variable costs, industry expertise, and well-established distribution channels and clients. Another exit strategy we would consider is a merger or acquisition by another company if terms and conditions were favorable.

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Fig. 5 INCOME STATEMENT NOVA Technologies FY 2016-2020

ASK To gain first mover advantages and bring the Smart Solar Window to market with our proposed value-chain and core business model, we are asking for $1.37 million in order to finalize product development for scaled manufacturing, establish supply channels and assembly lines, maintain skilled employees, and cover our

necessary cash expenses in fiscal years 2016 and 2017. We are prepared to offer a 40% equity stake for this offer, which would yield an ROI of 183% in 6 years, 531% in the first 10 years (Fig. 6). Not only is the Smart Solar Window a smart product, for building owners and investors, it’s a smart investment.

Fig. 6 NOVA Technologies Valuations and Investor Returns

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APPENDIX Appendix 1: Prototype Diagram

Appendix 2: Cross Section View of Prototype Technology

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Appendix 3: Smart Solar Window Life Cycle Analysis Overview

Appendix 4: TEM Image of Quantum Dots

Appendix 5: Example of Clarity

Appendix 6: Current Support and Connections

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Appendix 7: Potential Support and Connections

Smart Solar Windows generate clean electricity similarly to solar panels, and can be used in urban environments that limit traditional solar applications. Imagine, a skyline of massive, solar energy generators.

Thank you for reading our plan. We look forward to working with you.

Sincerely, The NOVA Technologies Team People, Prosperity and the Planet

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