Simply Smarter Power –For All™€¦ · Social Impact (10-Year Total) • 5 Million...

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Simply Smarter Power – For All™

Dr. Myles E. Mangram

Founder & Chief Executive Officer

IQgrid Ltd. PBC

A world without

‘Energy Poverty’

To passionately and

profitably empower the

‘energy poor’ through

innovative and sustainable

electric power solutions

1.3 billion ‘energy poor’ people world-wide in

remote rural areas of developing countries

survive without access to electricity.

Problem

Problem Cont.At the heart of the ‘energy poverty’ problem are serious challenges:

Technological

Socio-Economic

Environmental

Operational

The International Energy Agency projects that by 2030,

40% of the world’s ‘energy poor’ will have electricity

access via some type of ‘microgrid’ technology.

Solution

1.3 billion

people world-

wide without

electricity

Microgrids (mini

localized electric

utility plants)

have emerged as

the most promis -

ing broad-scale

solution available

for remote rural

electrification and

the related fight

against energy

poverty.

IQgrid Microgrid MPower Platform

Village Residential &

Commercial Users

Transmission Components

Fuel Cell

IQgrid Solution

IQgrid’s ‘microgrid-in-a-box’ waste-to-energy fuel cell platform solution

holistically addresses each of the ‘energy poverty’ challenges.

IQgrid Business Model

Government Agencies & Non-Gov.

Organizations

• Purchase & pay for systems via Power Purchase Agreements

• Transfer system ownership to villages/communities

Village Microgrid

Franchisees

• Co-operate & maintain systems w/ IQgrid

• Deliver power to consumers via IQgrid-provided microgrids

• Collect $ from consumers

Village Households

& Commercial Consumers

• Pay $ for electricity on a "per-use" tariff basis

• May receive subsidies from government agencies

Tariffs – Fixed price of electricity to consumers, established by Power Purchase Agreements.

IQgrid Value Propositions

• Affordable power for village consumers

• Financial resources for system

franchisees

• Positive social & environmental impacts

• Enhanced economic development

• Community ownership of

microgrid systems

• Franchise system benefits & support

• Provides 24-hour/day high-grade electricity

• Uses readily-available biomass (waste) fuel sources

Technological Benefits

Operational Benefits

Financial Benefits

Sustainability Benefits

Social & Environmental Impacts

Positive Social

Impacts

Improved

Productivity &

Quality of Life

Improved

Sanitation

Reduced (Recycled )

organic, human &

animal waste

pollution

Demonstrable

Environmental

Impacts

Reduced Emissions

& Fossil fuel

consumption

IQgrid Social & Environmental Impact Projections

Impact Impact MeasureSocial Impact (10-Year Total) • 5 Million “electricity empowered” village households

• $4.3 Billion ($1.5 for every $1 Invested)

Environmental Impact • 97% less pollution (including reduced CO2 & methane gas)• Solid waste elimination

Market

1.3 billion

people world-

wide without

electricity

Worldwide

Market

Potential:

‘Energy Poor’

Consumers –

1.3 billion

Microgrid

Industry - $40

Billion Per

Year by 2020

Initial Focus: Brazil, Russia, India, China & S. Africa markets (1.8 million

villages; 340 million potential remote rural ‘energy poor’ consumers)

Targeted ‘Remote Village Microgrid’ market sub-segment expected to

reach $8 Billion/Yr. by 2020

Competition

The remote rural microgrid electrification market includes a

number of small players; none of the large electric utility &

software giants are currently focused on this segment.

No single company controls more than 1/10th of 1 percent of the

1.8 million remote village households within IQgrid’s target

market (Alliance for Rural Electrification, 2015).

Centralized

Grids

Microgrid System

Providers

Stand-Alone Systems

Superior Stakeholder Value Creation:

GovernmentsLocal franchisees

Village consumersInvestors

Resources:

Transformative fuel cell microgrid technologyProprietary know-how

Competencies:

Evolutionary business model & technology

platform

Capabilities:

Unique operational & finance models

Differentiated technology & service

advantages

IQgrid is a microgrid project development “impact

enterprise” that delivers sustainable electric power

solutions to remote rural regions of global emerging

markets via mass-scale, turnkey containerized fuel cell

microgrid systems.

IQgrid: A For-profit

Benefit

Corporation

Dr. Myles E. Mangram

30+ Yrs. of enterprise and technology management experience

Highly specialized education, including MBA and Doctor of Business Administration degrees

Expert in microgrid technology management & remote rural electrification

Dr. Steven Goldsmith

Foremost microgrid authority with over 32 Yrs. of technology development experience

PhD in Electrical Engineering

Lead microgrid development scientist for Sandia National Laboratories

IQgrid Team

The current team also includes prominent legal, financial, and

subject-area experts, as well as key strategic technology alliances.

Strategic Alliances

SEab Energy - Award winning developer of waste-to-energy biogas fuel cell systems (Powers the IQgrid microgrid platform)

Encorp Energy – Established global developer of integrated microgrid hardware & software solutions (Controls the IQgrid microgrid platform)

General Microgrids– Global microgrid portfolio developer with existing

power purchase commitments (Co-develops select IQgrid projects)

• Estimated 20% Annual ROI

• 5-7 Year Exit Strategy

• Projected 10X Investment Return

Capitalization

1.3 billion

people world-

wide without

electricity

Series A:• $2.5 Million

Use of Funds:• Platform

Integration &

Optimization

• Business/Market

Development

• Super Computer

• Testing &

Deployments

Financial ForecastsSeries A : Uses of Capital Resources

Amount

Platform/Services Development $ 770,000

Marketing & Sales 145,000

General & Administrative 1,055,000

Capital Equipment 550,000

Total $2,520,000

Pro-forma Revenue Forecasts Summary

Year 1 Year 2 Year 3 Year 4 Year 5

Total Revenues $1,950,000 $9,600,000 $105,000,000 $271,000,000 $441,000,000

Gross Profit $860,000 $4,240,000 $46,000,000 $119,000,000 $195,000,000

Income After Taxes $(192,000) $1,745,000 $17,500,000 $48,500,000 $80,900,000

Simply Smarter Power – For All™

“Kudos for building a great social vision and investment thesis!”

Yogesh Amle, Managing Director

Union Square Advisors (Leading Technology-Focused Investment Bank)

Appendix – Critical Assumptions

• Cost per Village/Community microgrid system (Inc. delivery & installation) = $820,000

• Each 200 watt microgrid systems provides service for up to 1,500 individuals (about

400 households & small commercial enterprises)

• IQgrid Price per kilowatt hour = $.58 for 24-hour/day, high quality electricity

• Total cost of IQgrid microgrid system is 62 percent cheaper than potential remote

central grid connection options (Alliance for Rural Electrification, 2010)

• Target market produces large amounts of agricultural, animal, and human waste

(sufficient to produce .46 billion tons of biogas/Yr.)

• 20% to 30% of people in the developing world operate a business from their home

(World Bank, 2010)

• Five-year revenue forecasts reflect an anticipated market share of the Global Village

Microgrids Market of only 0.75% or 840 deployed systems (Navigant Research, 2014)

• Current Series A capitalization round = $2,500,000; anticipated Series B capitalization

round (2019) = $10,000,000 to $15,000,000

• Series A (Pre-Money) Valuation - $2,950,000; Series A (Post-Money) - $5,500,000

• “Impact Investment” resources reflect primary sources of capitalization - potential $1

Trillion/Yr. investment class by 2020 (J.P. Morgan, 2010)

IQgrid Ltd. PBC

Attn: Dr. Myles E. Mangram

2060 Avenida de Los Arboles #470-D

Thousand Oaks, CA 91362

(805) 493-1120

Myles@IQgrid.net

www.IQgrid.net

Contact us today to discover how you can

become part of the IQgrid ‘Doing well, while

doing good’ opportunity/solution.