Generating revenue from waste algae

Gen3Bio transforms waste algae into profitable specialty chemicals. Our Pitch Gen3Bio transforms waste algae into profitable specialty chemicals.

How do we do this with algae? We maximize chemical recovery yields from algae via a proprietary enzyme blend that optimizes sugar, fat and protein extraction Over prior technologies we… increase algae product yields 50% reduce capital requirements up to 90% reduce operating expenses up to 50%

The Gen3Bio Difference Gen3Bio does not grow or cultivate algae. The Gen3Bio process uses algae others produce and captures all its cell contents for conversion to specialty chemicals

Our Tangible Progress Base technology proven in the lab at various scales Basic 5 gallon and 15 gallon pilot plant designs completed Interest from: Honda (OH) MWRD of Greater Chicago South Davis SD (UT) Pittsburg, KS Grand Rapids, MI

Initial Target Market There are over 16,000 wastewater treatment facilities in the United States. * = 1,000

municipal wastewater nutrient discharge reduction of Background The EPA is targeting a municipal wastewater nutrient discharge reduction of 95%

Algae is the Solution Wastewater nutrients provide a natural algae food source Therefore, algae use reduces nutrient discharge BUT…what do we do with all of this algae?

$5.5 Million The Challenge with the Solution One large operator will need to dispose of 15 semi-trucks of algae per day, at an annual cost of $5.5 Million *not including operational costs

Turn the Challenge into Cash GEN3BIO enzyme technology converts that waste into products with the $5.5M expense converting into a specialty chemical revenue of $200 MILLION

Where Does Gen3Bio Fit? Clean water Wastewater Algae Tech Algae Slurry Specialty Chemicals

Business Model Own and operate plants at municipal wastewater treatment facilities with % of net product revenue provided back to clients

Many other wastewater generating industries Our Scalable Future Many other wastewater generating industries Livestock Saw Mills Oil & Gas Mining

We are seeking $500,000 to facilitate initial piloting… Our Next Needs - Our Ask We are seeking $500,000 to facilitate initial piloting… $150,000 3 Pilot plants, Utah, Illinois, Iowa: design, build and support $ 110,000 Process trials and analysis $100,000 Personnel & Consultants $ 50,000 Intellectual Property $ 60,000 Business Development $ 30,000 General legal, accounting, insurance $500,000 Time frame – through Q3 of 2018

Gen3Bio, Inc. KPTC 1281 Win Hentschel Blvd West Lafayette, IN 47906 USA www.gen3bio.com Kelvin T. Okamoto, PhD (CEO) kokamoto@gen3bio.com +1-847-271-9285 Skype: ktokamoto

appendix

THE GEN3BIO PROCESS Algae Slurry Soluble carbohydrates & protein for fermentation Aqueous Phase Liquid Phase Digested Biomass Treatment with enzyme blend Solid Phase Lipids for fuels & products Filtration Extraction Solid Phase Protein-rich Residue & Cell Walls

BIODIESEL ALONE IS NOT PROFITABLE COST MODELING Sale Price $2.50 $2.00 Sale Price $1.50 Profit Per Pound $1.00 $0.50 Loss $- Amino Acids Succinic Acid Biodiesel $(0.50) $0.93/lb processed algae profit if no cost for algae (90% gross margin) BIODIESEL ALONE IS NOT PROFITABLE

POTENTIAL END PRODUCTS Fatty Amides, Amines, Alcohols From Sugars Succinic Acid Lactic Acid Bioethanol Butanol Acetic Acid Simple Sugars From Fats/Lipids Biodiesel Glycerol Omega-3 Fatty Acids Fatty Amides, Amines, Alcohols Others Simple Amino Acids Neutraceuticals Aquaculture Fish Food

% Cell Content Recovered Liquid Extraction ALGAE EXTRACTION Technology Scale High SC CO2 PEF Ultra- sound High Base MORE DESIRABLE % Cell Content Recovered HPL High Acid HTL Low High Energy Usage Low Energy Usage

WWTF Revenue Targets Licensing Royalty Annual Revenue Target $200,000,000 $20,000,000 $2,000,000 $100,000 Low Volume Medium Volume High Volume UltraHigh Volume

Total investment to breakeven forecasted: $2,000,000 Financial Summary 2017 2018 2019 2020 2021 Total Revenue $- $110,000 $6,325,000 $29,680,000 $85,780,000 Total COGS $20,000 $55,000 $778,250 $14,887,400 $46,216,400 Gross Profit $(20,000) $5,546,750 $14,792,600 $39,563,600 Gross Margin N/A 100% 713% 99% 86% Total G&A $54,000 $105,500 $540,000 $1,025,000 $2,450,000 Total R&D $5,000 $200,000 $500,000 Total Operating Expenses $59,000 $305,500 $1,040,000 $1,525,000 $2,950,000 Net Income $(79,000) $(250,500) $4,506,750 $13,267,600 $36,613,600 Y/Y Growth Rate -217% 1899% 294% 276% Breakeven: Q4 2019 Total investment to breakeven forecasted: $2,000,000

Team Rick L. Johnson George Onik Dr. Kelvin T. Okamoto Dan Dawes Advanced Algae Systems Business & Marketing Advisor George Onik Algae Carbon Capture Technical & Marketing Advisor Dr. Kelvin T. Okamoto CEO Dan Dawes Purdue Foundry/AgriNovus Indiana Business Advisor Prof. Sridar Viamajala The University of Toledo Technical Advisor Prof. Sasidhar Varanasi The University of Toledo Technical Advisor

Partners Advanced Algae Systems