FLOW Assessment Systems Milestone Presentation May 7, 2002 Philip Beddow Adam Franzen Marcus Diehl Garth Gillespie Rhoda K. FarrisElizabeth Lighthart

Outline Societal Issue, Background, and Need Proposed Solution Goal and Objectives Management Plan Staffing and Resources Plan Funding Plan Marketing Plan Evaluation Plan

Societal Problem Continued population growth and finite water resources are leading to chronic fresh water shortages 3

Increasing Population 4

Water is Recycled * USGS, 5

Earth’s Water Supply 326 quintillion gallons of water 97% salt water 2% in glaciers and ice caps 1% usable fresh water * 6

Consumption *Data based on individual daily usage average of 74 gallons 7

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Current Techniques Mandates limiting water usage (i.e. New York) –Penalties –Difficult to enforce 1992 Energy Policy and Conservation Act –Regulates all U.S. manufactured water fixtures: Toilets to 1.6 gallons per flush Urinals to 1 gallon per flush Shower heads and faucets to 2.5 gallons/minute Source: 9

Savings with Conservation Techniques Source: 10

Goal Provide a means of educating homeowners about their water usage habits and steps they can take to reduce the amount of water they are using 11

Objectives Increase awareness of excessive water usage by providing effortless monitoring of consumption patterns Provide data to water conservation agencies Supply advice on methods of decreasing water usage –Follow advice, save money 12

Projected Water Usage 13

Our Aim 14

SOLUTION 15

FLOW Assessment System 16

Product Goals Introduce to market before stiffer mandates are imposed Market to: –Homeowners –Government agencies –Water conservation groups Provide a quality product at a reasonable cost 17

Technical Approach Three Components –Wireless Sensor –Central Storage Unit –User Interface 18

Product Layout 19

Wireless Sensor Located at each water source – i.e. faucets, toilets, dishwashers Specially designed mini-hydroelectric turbine Monitors water flow Transmits data to Central Storage Unit 20

Internal View of Wireless Sensor 21

Central Storage Unit Collects data from all sensors – Uses standard interface (USB) Stores and analyzes data – Flash RAM, database(s) 22

Internal View of Central Storage Unit 23

User Interface View data on various output devices –Stand alone touch screen, personal computer, PDA Numerous formats to display data –Utilize existing software, i.e. Excel Water and monetary savings displayed Optional “Tips” data displayed 24

Product Demonstration 25

Project Phases Three years divided into phases –Phase 0 – Initial Plan and Research –Phase I – Proof of Concept –Phase II – Detailed Design Specifications –Phase III - Production of FAS 26

27 Proven management structure for Phase 0

Phase 0 Conduct Preliminary Research –January May 2002 Develop Phase I Plan –February 2002 Deliver Feasibility Presentation –February March 2002 Deliver Milestone Presentation –March April 2002 Deliver Web Page Demonstration –April 2002 Deliver Approval Presentation –April May 2002 Deliver SBIR Proposal –April May

Phase I Staffing Plan FAS project members continue current roles Hire entry-level professionals –Software Developer –Engineer 29

Phase I Finalize Software Specifications –June 2002 Build Prototype –June September 2002 Prototype Testing –September November 2002 Funding Demonstration –November December

31 Staffing Plan for Phase I

Phase I Personnel Project Manager (1) Financial Analyst (1*) Contracts Manager (1*) Software Developer (1) Engineer (1) Documentation Specialist (1*) * Part-time personnel 32

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35 Includes BASIC stamp kit, stamp RF kit, electric generator, turbine, Plexiglas, PVC piping, water valve ** TOTALS = Subtotal + G&A Total + Contracts

Phase I Budget Summary Total Phase I Budget: $69,995 –Personnel: $43,029 –Miscellaneous Resources: $6,650 –General and Administrative Costs: $19,872 –Internet Connection Fees: $444 36

Phase I Evaluation Criteria Scientific/technical merit and feasibility Experience qualifications and facility Effectiveness of proposed work plan Commercial merit and feasibility 37

Phase II Final Management Plan –January 2003 – February 2003 Software Development –February 2003 – February 2004 Hardware Development –February 2003 – February 2004 Installation and Testing –March 2004 – September 2004 Shift to Production Phase –September 2004 – December

Phase III Production Plan –January 2004 – July 2004 Testing –January 2004 Marketing Plan –January 2004 – June 2004 Manual Documentation –January 2004 – June 2004 Shift to Out-Years –June 2004 – July

40 Staffing Plan for Phases II and III

Phases II and III Personnel Project Manager (1) Software Developer (1) Engineer (1) Financial Analyst (1 * ) Contract Manager (1 * ) Marketing Director (1 * ) Documentation Specialist (1) Lobbyist (1 * ) * Part-time personnel 41

Contractual Aspects Celestica –Support Phases II and III requirements –Software/hardware development and testing –Production of FAS Alternate Contractors: –NASO Corporation Support Phases II and III requirements –Lockwood Greene Support Phase III requirements 42

Resources/Budget Three phases Each phase tied to design review Minimizes investor risk Maximizes motivation to deliver 43

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45 Includes BASIC stamp kit, stamp RF kit, electric generator, turbine, Plexiglas, PVC piping, water valve ** TOTALS = Subtotal + G&A Total + Contracts

46 * Total Actual Cost includes 40% overhead to cover all fringe benefits ** Annual Salary used to compute hourly rate and monthly salary *** Part-time schedule

* Service provided by Cavalier Telephone 47

Budget Summary Total budget: $999,581 –Phase I: $69,995 –Phase II: $600,000 –Phase III: $329,586 Unit cost of FLOW Assessment System: $995 –May vary according to options purchased 48

Funding Plan NASA –$70,000 for Phase I –$600,000 for Phase II –Phase III funding dependent on success of Phases I and II Environmental Protection Agency (EPA) 49

Marketing Plan Legislation Government agencies –Initial focus on city and state Conservation organizations Housing contractors and homeowners –Initial target area: New York City and surrounding counties and boroughs 50

Target Market New York City and surrounding counties and boroughs –Total Population: 12 million people –Median Income: $39,369/household Top 10 income per household ranking in U.S. –FAS unit cost: $995 51

Target Market Breakdown 52

Return on Investment 53 *Homeowners figures based on monthly sales of 850 units at $995 each with $100 per unit profit **Government agencies/conservation organization figures based on monthly sales of 1000 units ***Combined Markets include Homeowners, Government Agencies/Conservation Organizations

Evaluation Methods Program Design Review(s) –Monitors project during early stages of phases Critical Design Review(s) –Performed during each phase –Closely tied to funding of future phases Factory Acceptance Test (FAT) –Conducted on fully assembled system prior to delivery Customer Acceptance Test (CAT) –Performed on fully assembled system –Conducted monthly for first year after production 54

Potential Risks Lack of significant clientele Competitors in the market 55

Conclusion Flow Assessment Systems is a moderate cost information device that provides residential water consumption awareness FAS is an innovative solution to reduce water consumption Project is on schedule and will meet objectives and goals 56

FLOW Assessment Systems 57

Questions? 58