Company Overview

1
Company Overview

• Botanic Air Corporation (BAC) will design, build
  and operate indoor plant wall (aka green wall,
  living wall) installations to measurably improve
  indoor air quality (IAQ) and other/below clean
  tech benefits at commercial and institutional
  buildings and facilities.
• BAC will use phytoremediation (plant
  bio-filtration) and ultraviolet photocatalytic
  oxidation, actively integrated with building HVAC
  systems. Success will be demonstrated by pre and
  post treatment measurement of volatile organic
  compounds (VOCs), HVAC energy use, CO2 emissions,
  and occupant/worker health and productivity.
• BAC is seeking 112,500 in seed capital funding
  to develop and build a first prototype, and
  subsequently 2 million for about 40 operating
  trial installations in commercial and
  institutional buildings prior to a national
  roll-out. (contact Mike McCarthy,
  1-206-661-4871, www.plantsearchonline.com/BotanicA
  ir.htm)

2
Problems

• Most indoor air quality (IAQ) pollutants
  (formaldehyde and other toxic gaseous volatile
  organic compounds (VOCs) come from sources inside
  the building chemical and biological
  contaminants from adhesives, carpeting,
  upholstery, manufactured wood products, copy
  machines, pesticides, and cleaning agents, which
  may emit VOCs. Indoor air is typically 2-5
  times, even 100 times, more polluted than outdoor
  air.
• Exposure to VOCs can cause headaches, acute
  illnesses (asthma, nausea) and chronic diseases-
  cancer, immunologic, neurologic, reproductive,
  developmental, and respiratory disorders.
• Most sick building syndrome (SBS) is related to
  poor IAQ and VOCs, causing- irritation of the
  eyes, nose, throat neurotoxic or general health
  problems skin irritation nonspecific
  hypersensitivity reactions and odor and taste
  sensations.
• Typical HVAC systems filter particulates, but
  cannot remove gaseous VOCs, or deliver the 30
  minimum indoor humidity level.
• Of more than 70 million Americans working
  indoors, 21 million are exposed to poor IAQ,
• 40 of absenteeism and 12 reduction in
  productivity is attributed to poor IAQ. 30 of
  the buildings in the United States and the world
  experience IAQ problems.
• Increasing the building intake of outdoor air
  (ventilation) to dilute and discharge indoor VOCs
  increases HVAC energy cost for heating/cooling/fil
  tering and is often not an attractive option due
  to outdoor air pollution.
• Commercial buildings in North America contribute
  18 of total world carbon dioxide (CO2) emissions.

3
Solutions

• Phytoremediation of indoor air utilizes plants to
  remove, reduce, or neutralize environmental
  contaminants and volatile organic compounds
  (VOCs) such as formaldehyde, in the air of
  offices and other enclosed buildings.
• Evidence exists of the ability of plants to
  balance indoor humidity, reduce CO2 and VOCs, and
  remove airborne particles, also reducing stress,
  improving actual and perceived health, mood, and
  productivity.
• OSHA estimates employers could save 15 billion
  yearly from increased employee productivity and
  attendance due to better indoor air quality.
• Plants reduce the need for outside air intake and
  so reduce HVAC energy cost, and balance the
  indoor humidity level to the desirable 30-55
  range.
• Plants convert CO2 to carbohydrates and oxygen
  during photosynthesis, thereby reducing building
  CO2 emissions.
• Ultraviolet photocatalytic oxidation (PCO) is
  also used for removal of VOCs, and requires less
  energy to operate than many existing filter
  systems, reducing VOCs to water and CO2.
• Going beyond merely decorative plant wall
  systems, BAC will develop attractive plant wall
  installations using phytoremediation plus PCO,
  actively integrated into building HVAC systems,
  providing continuous indoor area wide
  re-circulation of the treated air. BAC will
  include means for on-site ongoing measurement of
  pre and post treatment 1- IAQ, (such as humidity,
  CO2, particulates, and VOCs- formaldehyde, ozone,
  etc.) 2- HVAC energy, 3- CO2 emissions, and 4-
  occupant or worker health and productivity.
• If you can t measure it, you cant manage it.
  BAC will provide measurable solutions and
  results, with a data and metrics based bottom
  line cost benefit approach to indoor air quality,
  HVAC energy consumption, CO2 emissions, and
  occupant/worker health/productivity at commercial
  and institutional facilities.

4
Business Model

• A plant wall installation lease setup fee is
  based on customer ROI calculation, using
  GreenPlantsforGreenBuildings.org example using 1
  plant per 100 sq. ft or per 1 employee, savings
  of 3.6 employee absentee cost (_at_ 1,300/year per
  worker x 16 workers per 16 plants 20,800
  benefit per BAC panel. Setup fee of 15,000 per
  BAC panel for 16 workers, versus 20,800 absentee
  cost for 16 workers savings of 5,800/yr per 16
  workers. BAC 4x8 panel has 16 plants.
• Additional customer value is from Green Building
  LEED certification (LEED IEQc3.2 pre-occupancy
  requires formaldehyde, CO, and total VOCs
  levels), generating 3.5 higher occupancy rates,
  3 higher rental rates, 6.6 higher ROI, and 7.5
  higher building value.
• Single 4x8 panel module estimated cost is
  3,000-5,000 variable is largely dependent on
  cost of VOC/CO2/humidity sensor and data logging
  and analysis.
• An annual lease service fee is based on meeting
  benchmark results metrics for IAQ levels, HVAC
  energy consumption, CO2 emissions, and
  occupant/worker health, and/or attendance and
  productivity.
• Installation setups are done by BAC
  maintenance/service is done by trained local
  interior plantscape partners, or other trained
  industry partners, under license and
  training/monitoring by BAC quality technicians,
  or by BAC staff. BAC maintains overall design,
  training, and quality assurance.
• Customers are primarily commercial and
  institutional building and facility owners and
  managers, employers and tenants, in the US and
  abroad.
• BAC retains ownership of all installation
  elements- plants, structures, sensors, equipment,
  IT, IP, and all appropriate procedures and
  patents. Installations are leased, not sold.
• BAC will pursue legal practical operating
  procedures to protect all IP elements.

5
Traction

• As of September 1, 2012 no customers, no
  contract, no prototype, no funding, 0
  capital/equity/debt as of September 2012.
  Founders research/editing since Jan. 2012 is
  ongoing D-U-N-S and WA UBI obtained. Botanic
  Air Corporation name has been reserved with
  State of Delaware. US Patent Pending two
  existing related phytoremediation patents have
  been identified.
• Business Plan, PowerPoint, webpage, gust.com
  investor portal company profile are completed.
  Company has submitted to present at NW Energy
  Angels and also registered at other online angel
  investor portals including. Several green
  buildings/clean tech/building services potential
  strategic partners, investors, professionals have
  been contacted communications with a VP at a
  prominent western DBOM firm since late April
  keep in touch.
• Comment from Sustainability Solutions Practice
  Director at Design Build Operate Program Manager
  at global engineering leader CH2M Hill, "It
  sounds like your system will provide innovative
  solutions for building owners, and we may be
  interested in applying it for our clients once
  you have it commercialized."
• One south Seattle incubator office/workshop site
  is under consideration.
• Product is in development two prototype 4x8
  expanded aluminum 2mesh screens for prototype
  plant wall structure have been purchased by
  Founder.
• Several Advisors in relevant fields have been
  identified and interviewed.
• Confirmation from an Advisor that no other
  similar installations exist (i.e. plant walls
  with HVAC integration and measurable IAQ
  results).
• (Traction is simply forward progress on all
  fronts finding potential customers, generating
  PR, recruiting key employees, and building an
  early prototype of your product. These are all
  the basic elements to show that you are actually
  starting a company. gobignetwork.com )

6
Execution Plan

• First objective is to fund, design, build, and
  operate a prototype as soon as possible. A
  further four prototypes to be built and installed
  in first full year (2013), 12 test installations
  in second full year (2014), 25 installations in
  the third full year (2015), prior to a national
  roll out. Installation setup and annual service
  fees will provide revenue starting 2014.
  Prototypes and beta/test may be sponsored by
  employers/tenants and/or building owners and
  managers.
• Collaborate with Seattle colleges/employers to
  perform preliminary studies on technologies, HVAC
  designs/energy, CO2 behavior, lighting,
  metering/sensors
• Use Advisors and contractors to design, build,
  install and operate prototypes
• In 2016 a USA national rollout by five regions,
  each with a regional BAC office
• To start this, 60,000 immediate capital is
  needed, then 56,000 in 3 months, per Executive
  Summary K. Financials, and slide 11 following.
• Seattle, Western, and US area target markets will
  be surveyed with first funding to determine
  marketability, customers, and pricing of
  installations setup and annual service.
• Begin recruiting management team in 2014 with
  revenue stream, CEO first/soon as feasible to
  replace Founder as CEO.
• Be guided by principles in The Lean Startup (Eric
  Ries, author) and Built to Last (Jim Collins,
  author).

7
Addressable Market

• Office buildings, over three quarter million
  buildings, represent about 22 of total US
  commercial buildings. 30 of the buildings in the
  United States experience indoor air quality
  problems.
• Up to 60 million people working indoors suffer
  with eye, nose and throat irritation, headache
  and fatigue (60 mlln people 60mlln plants
  4.6mlln. BAC 4x8 panels)
• The five billion square feet ( 3.125mlln of BAC
  4x8 panels of 16 plants each) of private office
  space located in the 91 markets served by BOMAs
  local associations provide work space for an
  estimated 21 million office jobs (5blln
  sq.ft./21mlln jobs 238 sq.ft. per job/person
  21mlln people 21mlln plants 1.3mlln. BAC
  panels).
• Average of 1.3 and 3.125 and 4.6 mlln. 3.0mlln.
  _at_ 30 with IAQ problems 900,000 panels
  estimated addressable market, _at_ 10,000 per panel
  9 billion, _at_ 5,000 per panel 4.5 billion.
  
• Target markets are facilities with 1) SBS/VOCs,
  2) 24/7 occupancy, 3) Green Building/LEED goals,
  4) IAQ high value (high salaries, payroll), 5)
  desirable/high facility profile 6) IAQ results
  oriented clients, 7) poor outdoor air quality
• Air purification equipment manufacturers, NAICS
  333411, industry revenue for the year 2011 was
  reported at 3.0 billion, with an estimated gross
  profit of 32.57
• Industry related organizations- BOMA, NAIOP,
  IFMA, ASHRAE, AIA, USGBC, PIA, ASID, IAQA, AIHA,
  others (full listing in Business Plan Appendix).
• Commercial building types include (per EPA
  EnergyStar.gov) bank/financial institutions,
  courthouses, data centers, hospitals,
  hotels/motels, houses of worship, K12 schools,
  medical offices, offices, residence
  halls/dormitories, retail stores, senior care,
  supermarkets/grocery stores, warehouses (add
  jails,prisons retirement homes also see
  /BotanicAir.htm bottom)
• Seattle, Western, and US area target markets will
  be surveyed with first funding to determine
  marketability, customers, and pricing of
  installations setup and annual service.

8
Competition

• Ambius (IL, UK), www.ambius.com/green-walls/index.
  html, a certified specifier, installer, and
  service provider for multiple green wall
  manufacturers
• Nedlaw (Toronto ON), www.naturaire.com, Cleaning
  Air, Naturally Our Active Living Wall
  Biofilters remove Volatile Organic Compounds
• GSky (Vancouver BC), gsky.com/green-walls/versa,
  the most versatile interior Green Wall system in
  the industry
• McCaren Designs, (MN), greenwalls.com, blends
  engineering ingenuity with striking design,
  advertising a 80in.x48in. Portable Greenwall,
  fully assembled and transportable, drip
  irrigation pump, timer and system, and
  reservoir/base, except the imagination and the
  plants at 1,695. FOB St.Paul MN.
• Sage Botanic Media/ Biotile Vertical Garden
  Systems (IL) is a vertical gardens company based
  in Chicago, working internationally
• RPI/CASE/SOM (NYC)- Center for Architecture
  Science and Ecology (CASE), a collaboration
  between Rensselaer Polytechnic Institute (RPI)
  and Skidmore, Owings Merrill (SOM), has
  created a new prototype that would work with a
  buildings existing HVAC system to reduce energy
  loads and improve indoor air quality.
  http//www.architectmagazine.com/green-technology/
  active-phytoremediation-wall-system.aspx No
  indication that results will be measured.
• UV Photocatalytic oxidation (PCO) is also used
  for removal of VOCs, and requires less energy to
  operate than many existing filter systems.
  American Air Scrubbers (americanairscrubbers.com)
  and Calutech of Houston (calutechofhouston.com),
  all are mainly residential. BAC intends to
  incorporate PCO into BAC installations, adopt
  rather than compete with PCO.
• Only BAC aims to offer measurable results (using
  IAQ sensors) not only for IAQ/VOCs, but also CO2
  emissions reduction, HVAC energy savings, and
  occupant/worker health, attendance, and
  productivity improvement.

9
Management Team

• Mike McCarthy, Founder, interim CEO during
  Concept, Product Development, Prototype, and
  field test periods (2012-2015),
  http//www.linkedin.com/pub/mike-mccarthy/6/736/41
  4
• Advisors specialties- HVAC, IAQ, IAQ sensors,
  interior plantscape industry, phytoremediation,
  photocatalytic oxidation, market
  research/validation, commercial real estate,
  LEED, wall structure design material,
  aero/hydroponics, solar/photovoltaic,
  UV/LED/lighting, horticulture and indoor plants
  most already contacted and interviewed or
  consulted,
• others still being sought. Full listing of
  Advisors to date is in the following slide.
• C-level team to be recruited in 2014 as supported
  by BAC revenue stream CEO understudy will be
  recruited as early as feasible 2012-2013
• Management will be guided by principles presented
  in The Lean Startup (Eric Ries, author) and Built
  to Last (Jim Collins, author).

10
Board, Advisors

• Board- tbnAdvisors- most already are
  identified/consulted, no formal agreements yet
  made
• HVAC- Richard Ward, P.E., RMW Engineering
  Seattle Rodney Dwyer, Mechanical Engineer,
  Seattle University Andreas Winardi, Mechanical
  Chemical Engineer, Puget Sound Energy Jon
  Vlaskamp, Intern, Honors- Cascadia Community
  College, Environmental Technologies
• Sensors- Bernt Blomgren, President,
  Global-Controls Inc., Seattle
• Indoor Air Quality- Clinton Holzhauser,
  EHS-International Inc., Bellevue
• Phytoremediation- Prof. Emeritus Stanley J. Kays,
  Univ. Georgia Horticulture Prof. Stuart Strand,
  Strand Laboratory, UW Environmental Engineering,
  Seattle Prof. Phillip Thompson, Chair- Civil
  Environmental Engineering, Seattle University
• Photocatalytic oxidation- tbn- Univ.Wisconsin,
  three TX commercial firms
• Plants- Rachel Sacks, Twyford Nursery, Florida
• Industry- Joe Haslett, Cal Poly San Luis Obispo
  CA Scott Barron, Botanical Designs, Seattle
  Alex Fell, National Foliage Foundation, Kraft
  Gardens- Florida
• Market Survey- Seattle University, Greg Scully,
  Project Center- College of Science and
  Engineering and the Albers School of Business and
  Economics, others
• Wall design material- Mike Slota,
  SlotaDesign.com Bothell Dan Terry, DanTerry
  Inc., Woodinville
• Lighting/LED/UV, Solar/photovoltaic,
  battery/storage- tbn
• Aero/hydroponics- Nathan Ryweck, AquaSerene,
  Seattle
• See http//gust.com/c/botanicair Management
  Team

11
FinancialsBotanic Air is seeking a building
owner/manager prototype(s) installation investor
partner(s), OR 112,500 seed capital, for the
design/build/install/operate of the first
prototype. Company pre-money Valuation is
750,000., each 1 of shares is 7,500., Cap
Table- 100 owned by Founder, no debt.
Botanic Air estimated budget first 6-9 mos. 2013 2014 2015
A- of plant wall installations 1 4 12 25
B- estimated number of 4 x 8' panels per installation 6 10 10 10
C- Revenue- installations _at_ 15,000 per panel 90,000 600,000 1,800,000 3,750,000
D- COGS- installed panels cost _at_ 6,000 per panel 36,000 240,000 720,000 1,500,000
E- Gross margin/gross profit 54,000 360,000 1,080,000 2,250,000
Fixed / Operating Expenses F- advisors/consultants/labor 28,000 80,000 80,000 60,000
G- RD laboratory 28,500 60,000 60,000 60,000
H- Founder / Manager / CEO (new CEO in 2015) 9,000 36,000 48,000 60,000
I- rent, miscellaneous expenses 11,000 24,000 24,000 120,000
J- Total operating cost / overhead 64,000 200,000 212,000 300,000
K- Total Cost / Expenses 112,500 440,000 932,000 1,800,000
L- EBITDA net profit / (loss) (10,000) 160,000 868,000 1,950,000
M- funding needed- (Total Cost less prev. EBITDA) 112,500 450,000 772,000 932,000
N- beginning cash balance (prev. ending cash) 0 (10,000) 150,000 1,018,000
O- ending cash balance (beginning cash EBITDA) (10,000) 150,000 1,018,000 2,968,000
P- Pre-money valuation (Concept500k,Prototype1mln) 750,000 750,000 1,000,000 5,000,000
Q- Startup Stage development development prototype revenue