OBIEXDNA Security Solutions
ObiexAn advanced technology company based in Geneseo, NY
Creates synthetic nano-scale DNA taggants* for counterfeit prevention within high-value industries
Mission: To lead the way in: Forensic security against counterfeiters Protect the reputation of businesses Mitigate financial losses Ensure the safety of consumers
Based upon research conducted by Dr. Anthony J. Macula at SUNY Geneseo; Funded in 2010 by the US Air Force and a $150K SBIR Phase I Grant
*Marker on object for identification purposes
The Problem● Major corporations in U.S. and globally produce high value products
with the expectation that their products will get to their customers
● $1.7T WW entering sales and distribution channels
● $200 - 250B lost in U.S. annually, but even worseIn pharma, counterfeit meds lead to treatment failure in electronics, compromise national defense
● Counterfeiters put corporate reputations, and customer trust at risk
● New and improved methods to avoid detection● $74B in anti-counterfeiting measures ● Popular methods lack higher level forensic security
DNA taggants with tens of thousands of unique signatures can provide
this level of forensic security
• We have synthetic DNA anti-counterfeiting taggants
Quick Primer:
• DNA is composed of 4 subunits, or nucleotide bases: Adenine (A), Guanine (G), Cytosine (C), and Thymine (T)
• These subunits can be assembled (like building blocks) to create a single-strand of DNA, e.g., TGCAAT, CCAGTA, etc. with a unique sequence of bases, represented by a unique string of letters
Our solution: Dtags™
Adenine Guanine Cytosine Thymine
Dtags™ on Paper
• We have created a software program (SynDCode) that uses o mathematical information and coding theoryo molecular biology and biomolecular thermodynamicso for “highly-intelligent sequencing”
• Nucleotides are selectively sequenced along a chain to meet specific criteria o no cross-hybridization, i.e., no unintended double-stranded DNA, o which could result in misreads, ando false “priming sites” when we create copies of these strands
• First mini-sequences are created, then they are assembled into longer chains
• The result is a collection of “molecular blueprints”, i.e., molecules on paper
Dtags™ in Test Tubes• We then give these molecular blueprints to molecular biologists who
create a biological library of unique DNA strands, called “encoders”
• We again apply our understanding of math and biology to choose and physically mix a combination of these encoders to create a customized synthetic DNA taggant
• The “recipe” for each unique taggant is maintained on a high security computer and is assigned to a specific customer
1 5432
2520
1510
3, 5, 20
Tagg
ant
Enco
ders
Dtags™ in Ink
3, 5, 20
• The taggants can be incorporated into various substances, e.g. ink, and used to write on a product
Taggant
• Note that if we have just 100 test tubes of encoders, we can create 1010 taggants, or 10 billion unique taggants
800 tubes gives us 1080 taggants or more than there are electrons in the universe!!
Authentication Services• In the event of a potential malicious act of counterfeiting, • Our customer sends a sample back to our lab • Using math and biological techniques, we can decode the sample• Verify its authenticity and send back a report
AuthenticityVerified
Or Counterfeit
Report
Obiex: does the sample
match the original, unique taggant
signature?
3, 5, 20
Intellectual Property
• Issued US patent 8,735,327 which protects our method of synthesizing DNA taggants using combinatorial mathematical algorithms to define the nucleotide sequences in the DNA strands
• Proprietary bioengineering software tool, SynDCode
• Additional patent applications pending for compositions and uses of the markers as forensic taggants
Technology-to-Market Map
Vials of DNA markers in stabilizing solution
Pharmaceutical
Products IndustryApplication
Vials of DNA markers in inks
Libr
ary
of D
NA
Stra
nds
Authentication Service
Electronics
Documents
Textile
Highly Intelligent
Sequencing
Technology
Petrochemicals
Competition
Favorability
“Integrators want something secure, new and exciting”- Rosalie Clemens, Director of Business Development, ASE Optics
Competitive AdvantagesAuthentication Tech
Taggants Inks & Dyes Watermarks HologramsMillions of "Unique Signatures" Highly-Covert Replication Resistant Deeply Layerable Nanoscale Unit Cost Authentication Time Barriers to Entry
Competitive AdvantagesTaggant Tech
ObiexSynthetic
ADNAS Botanical
Non-DNA Taggants
Forensic Quality Safety Replication Resistant High-Information Encoding Multiplexing Commercial Scalability + Cost
Operations
OBIEX DNA Supplier
Receive biological library of DNA strands
Send Molecular Blueprints
Electronics Manufacturer or Supplier to the Commercial and Defense Industry
Customer
Encoders Molecular blueprints Physically mix encoders Sales & marketing Packaging & shipping Verification services80% Gross
Profit Margin
*1 lot marks 10,000 units of merchandise
$200 / lot
$1,100 / lot*
Keep $900/$1,100
1,805 lots $2,050 $3.7 million
1,300 lots $1,120 $1.5 million
Units Price per unit/lot Revenue
2014
ADNAS
Obiex
45%Cost
Advantage
Market Size
“There is room in the market for what Obiex is doing”Mr. John Cronin, V.P. of Operations, North Shore Components
Projected Revenue2018
Projected Financials
Year 2016 2017 2018 2019 2020
Revenues $375k $690k $1,585k $3,840k $5,745k
Cost of Goods Sold (COGS) $86k $122k $197k $366k $501k
Gross Profit $288k $567k $1,387k $3,473k $5,243k
Gross Profit Margin 77% 82% 88% 90% 91%
Operating (Fixed) Expenses $215k $281k $431k $532k $633k
EBITDA $72k $285k $955k $2,940k $4,609k
Market penetration of 35% in 3 years Revenue over $5.7M by 2020 Gross Margin over 90% in 5 years EBITDA reaching $4.6M by 2020
Company Managers Andrei Poblaguev – VP of Business DevelopmentKarynil Perez- Chief Operating OfficerMauricio Carneiro – Chief Financial OfficerSarah Ulrich – Chief Scientific Officer*We are currently seeking a CEO with experience in anti-counterfeiting
Advisory BoardAnthony J. Macula, Ph.D. – Inventor; Professor of Mathematics at SUNY GeneseoJohn M. Hammond, P.E. - President of Patent Innovations LLCJoseph F. Ruh - General Counsel and Corporate Secretary at Carestream HealthRobert G. Lamb, III - Senior Associate at Boylan CodeMichael Meador - Principal at Alliance for Manufacturing & TechnologyWendy Pogozelski, Ph.D.- Professor of Chemistry at SUNY Geneseo
Management Team
Project Plan
Research and Development Software R&D __________________ DNA applicator R&D subcontracted______ FDA Approval for Pharma TBD____Alpha and Beta Testing Gas, ink, toner, plastic, paint (ppt) Layered overt fluorescent taggant
Equipment and Facilities Find facilities ______________________ Purchase lab equipment ______________ Attain NQCA* certifications __________
Administration/ Operations Hire IT and Lab Technicians __________ Sign contracts with customers _________ Develop partnership
* National Quality Control Assurance
2015 2016
Q3 Q4 Q1 Q2
Ready for Market
Start-Up Expenses AmountFacilities $70,000PCR Machine $50,000Security Systems $50,000Full Time Lab Technician Salary
$40,000
Total Start-Up Expenses $210,000Sources of Capital AmountSBIR Phase I $150,000Investors $ 60,000Total Source of Funds $210,000
Use of Funds
• Counterfeiters damage corporate reputations and endanger consumers
• There is a significant need for forensic anti-counterfeiting solutions• We have the product that addresses that market need • There is room in the market for new competitors • Business model demonstrated by another successful company • Dedicated and qualified team to execute • Ready to go to market in under a year • Significant revenues with large profit margins
Thank you for your attention!
Conclusion