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OBIEXDNA Security Solutions

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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

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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

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• 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

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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

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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

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3, 5, 20





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Dtags™ in Ink

3, 5, 20

• The taggants can be incorporated into various substances, e.g. ink, and used to write on a product


• 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!!

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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


Or Counterfeit


Obiex: does the sample

match the original, unique taggant


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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

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Technology-to-Market Map

Vials of DNA markers in stabilizing solution


Products IndustryApplication

Vials of DNA markers in inks



of D




Authentication Service




Highly Intelligent




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“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


ADNAS Botanical

Non-DNA Taggants

Forensic Quality      Safety      Replication Resistant      High-Information Encoding      Multiplexing      Commercial Scalability + Cost      

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OBIEX DNA Supplier

Receive biological library of DNA strands

Send Molecular Blueprints

Electronics Manufacturer or Supplier to the Commercial and Defense Industry


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

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1,805 lots $2,050 $3.7 million

1,300 lots $1,120 $1.5 million

Units Price per unit/lot Revenue






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

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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

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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

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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

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Start-Up Expenses AmountFacilities $70,000PCR Machine $50,000Security Systems $50,000Full Time Lab Technician Salary


Total Start-Up Expenses $210,000Sources of Capital AmountSBIR Phase I $150,000Investors $ 60,000Total Source of Funds $210,000

Use of Funds

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• 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!